Montreal now a budding luxury real estate powerhouse—Sotheby’s

Montreal now a budding luxury real estate powerhouse—Sotheby’s

Montreal now a budding luxury real estate powerhouse—Sotheby’s Montreal is emerging as a luxury real estate “hot spot”, while Vancouver and Toronto sales should pick up this fall after somewhat sluggish times, according to a new report from Sotheby’s International Realty Canada.

The city is expected to continue on its current trajectory “as a strong leader on Canada’s luxury real estate landscape this fall,” the report stated, as quoted by The Canadian Press.

Sotheby’s International Realty Canada CEO Brad Henderson rejected the idea that Montreal’s growth is primarily coming from foreign buyers who have shifted away from the newly-taxed Vancouver and Toronto markets, although the study cited some anecdotal evidence of “an uptick in interest from foreign buyers seeking residences.”

Henderson emphasized that Montreal is an attractive place to live and work, with the added bonus of having comparatively less expensive real estate prices.

The Sotheby’s report also predicted “a brisk and active” market for luxury real estate in Toronto this fall and for Vancouver to regain momentum as a strong Canadian economy.

The rosy outlook came amid a slew of policy changes—including some from Ottawa and a couple provincial governments—designed to cool the country's hot housing markets.
 
“The psychological confidence that people had in the marketplace was shaken by all of the different factors that were put in there,” Henderson said, in reference to a recent drop in sales in properties of more than $1 million in Toronto.

In July and August, sales of condominiums and houses over $1 million in Toronto fell 27 per cent compared to the same months the year before, according to Sotheby’s. Transactions of properties over $4 million in the city fell by nearly the same amount (28 per cent).

Part of that drop came as buyers and sellers in Ontario grappled with a new 15 per cent tax on foreign buyers of properties in the Greater Golden Horseshoe Region, which includes Toronto and several nearby areas, introduced by the provincial government in late April.


Related stories:
The state of the Canadian high-end property market for the first half of 2017
There is now better foreign buyer data than ever before
2 Comments
  • Dusty Hill 2017-09-21 7:52:16 AM
    Is Montreal real estate ‘sizzling’? It’s a meme the media’s been trying to craft since BC, then Ontario, adopted anti-bubble measures to chill Vancouver and Toronto (it’s working). Local realtors are stunned and delighted. Just look at the statement days ago from Montreal real estate board spokesguy Mathieu Cousineau: “For single-family homes, market conditions for resales are increasingly favoring sellers, which explains why price increases have been more sustained in recent months.”

    And here’s what the nation’s biggest news agency just reported: “Canada’s hottest housing market these days may be Montreal. The Greater Montreal Real Estate Board released data Friday showing that 3,075 homes were sold in July, an increase of 16 per cent compared with a year ago and the most for the month in eight years. That contrasts with Toronto, where sales last month plunged 40.4 per cent while in Vancouver they dropped 8.2 per cent. The price of homes in Montreal was also higher, albeit still well short of levels seen in Vancouver and Toronto. The median price of a single-family home in Montreal rose to $323,000, up eight per cent from July 2016.”

    Wow. Seller’s market. Sales surging. Best in eight years. Prices rising. Eight per cent increase. Sizzling! Based on reports like that, buyers start thinking they should rush in and snap up properties which are bloating in value, certain to increase their net worth and puffery. And that’s precisely the point of Realtors twisting, torturing, manipulating and squeezing data until it squirts out the desired conclusion: It’s a boy! It’s a good time to buy. What is there to lose?


    Here are the facts. In July 3,075 properties sold in urban Montreal – the second-biggest real estate market in the nation. That was a disaster – 22% fewer than in June. In fact, in that prior month, 3,952 houses changed hands, which was a 21.8% crash from April (5,057 deals). July sales ended up being 36% less than during the spring. (Yes, it’s a slower time of year, which makes ya wonder why CTV says it is ‘sizzling’.)

    Prices? They’re stuck in the mud. The average detached house fetched $323,000 in July, which was actually down $5,000 (or 1.5%) from June. Values have remained in in the $310K to $320K rage now since the spring, right through the period when Toronto was collapsing and (supposedly) gobs of money were flowing into La Belle Province.

    So while the realtors and the media say one thing, the numbers say another. Sales have declined monthly since May. In the last 60 days, the volume has fallen drastically – more than 20%. Prices have increased by about 4% since the end of March, or not enough to cover the cost of buying or the commission on selling. And the average price of a detached in the region is 73% less than in the GTA, which should tell you something.

    Now, Montreal’s a great city. In many ways it makes Toronto look like Timmins on a Tuesday. But it’s not the same. In Montreal, only 55% of people own homes because they prefer to rent. (They don’t really like getting married, either.) In Toronto, the home ownership rate is 68% and people get horny about Wolf stoves.

    Same BS from realtors all over different city aimed at dumb Canadians.Stay strong Montrealers.
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  • 2017-09-26 11:12:42 AM
    Yeah....it's so sizzling that St. Hubert, St. Catherine's, look like ghost towns...
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