The condo segment is experiencing a kind of renaissance in Montreal amid a shortage of single-family properties and soaring detached-home prices, according to the Quebec Professional Association of Real Estate Brokers.
Sales of single-family homes declined by 7% in March, while transactions involving condos (up 27%) and plexes (up 36%) surged.
This accompanied a 43% decline in active listings of single-family homes, while plexes (up 18%) and condos (up 59%) are seeing mounting supply.
“The drop in inventory of properties for sale and the skyrocketing prices of single-family homes partly explain the increase in condominium and plex transactions,” said Charles Brant, director of market analysis at the QPAREB. “The gap between the median price of condominiums in the downtown Montreal area (decreasing) and the median price of condos in the suburbs (sharply increasing) is narrowing significantly.”
Median sales prices have increased across the board, with single-family homes posting the largest gains at 32%. Condo prices had a similarly strong 21% growth, while plexes posted an 8% uptick.
“A shortage of listings and the phenomenal growth in prices have adversely affected activity levels,” Brant said. “In the current context of soaring prices, households and investors are turning to other property categories with greater market availability.”