Here\u2019s what we\u2019ve noticed with regards to the market.
Right now the gap between the condo market and the house and plex market keeps growing.
Sales for homes and plexes are up compared to last year, while condo sales are down.
What does this say about the prices?<\/p>\n\n\n\n
Homes and Plexes\u2028 Condos<\/strong>\u2028 What can we take away from these facts? Takeaways for the condos market\u2028 Also\u2026
<\/strong>With sales up about 1% for homes, and 3% for plexes, and prices increasing by roughly 7% and 6%, respectively: This segment is clearly doing well.
Nothing crazy, but, a solid start to the year, and likely in line with, if not slightly above, the 10-year average.<\/p>\n\n\n\n
Condos, on the other hand, are starting to show a slow curve.
Sales are down about 7%, year-over-year, while inventory is up around 18% compared to this same time last year.
Prices haven\u2019t dropped; but, they\u2019ve completely flattened. They are sitting at 0% growth, year-over-year.
If this trend continues, we\u2019ll have moved out of a seller\u2019s market, and into a more balanced market.
We are currently standing at approximately 6.7 months of inventory. Once we hit something in the neighbourhood of 8 months\u2019 inventory the condo market on the Island of Montreal will officially be considered \u201cbalanced”.<\/p>\n\n\n\n
If you\u2019re buying a house or a plex:<\/strong>
Pretty much business as usual. Don\u2019t pay too much attention to headlines saying the market is down, because once you\u2019re out there shopping, you\u2019ll quickly realize you still have to compete for the attractive properties. Bidding wars are still very much a fact of our real estate market.
Also: Not many homes and plexes are being built in Montreal; so, that lack of supply is a big reason why this segment continues to perform well, and will likely continue to do so over time.<\/p>\n\n\n\n
If you\u2019re a seller:<\/strong>
This isn\u2019t the time to test the market.
In a flatter market, with more inventory, pricing is key. You need to be hitting right at market value, or even slightly under, to get attention. Overpriced listings tend to be readily ignored when buyers have options.
That said: Even if you need to be sharper on pricing, it doesn\u2019t mean condo values have dropped compared to last year\u2026 just yet.<\/p>\n\n\n\n
<\/strong>Last week, we attended a National Bank event hosted by Darren King, one of National Bank’s chief economists.
According to Mr. King: The current geopolitical situation, involving Iran, could have two main consequences for Canada; particularly for Qu\u00e9bec:<\/p>\n\n\n\n