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The value of plexes rises faster than any other type of building
News
While all residential properties have seen their value increase in 2018, Montreal plex owners remain the biggest winners in the event of resale, according to a recent report by the QFREB.
The value of plexes will have increased by 7% in 2018, according to a forecast based on the first 10 months of the year. Depending on the location of the building, this average can be revised upwards. A plex is worth 11% more than in 2017 in a neighborhood like Plateau Mont-Royal or Vieux-Longueuil.
Condominiums and single-family homes will not be left out, with a respective increase of 4% and 3% of the selling price. Also, note that bidding-wars are increasingly common in Montreal. All categories combined, 11% of properties have been sold at a price higher than that requested. Once again, plexes stand out from the market, with 17% of units sold at a higher price.
These plexes, however, will represent only a small volume of sales, with 4,475 units traded during the year, an increase of 4% compared to 2017. Single-family homes will increase by 1% (25,725 units), and condominiums 15% (16,650 units).
Québec an exception to Canada
Amidst the other Canadian provinces, Québec’s real estate market stands alone. While sales slowed down across Canada, Québec experienced a burst of activity in 2018.
Thus, while the average residential sales (all categories of properties combined) fell 11% in Canada compared to 2017, this figure jumped 5% in Quebec. According to forecasts based on the first 10 months of 2018, 86,800 properties were expected to be sold in Quebec for 2018, 4,000 more than in 2017.
The same goes for average selling prices: it decreased by 4% nationally, while Quebec rose by 5%. Despite this price increase and the tightening of mortgage access conditions, properties were selling faster and faster: on average 108 days in 2018, compared to 115 in 2017.
Imbalanced dynamism across Quebec’s rental market
However, these figures are not applicable to all of Quebec. While Rivière-du-Loup, Saint-Hyacinthe and Mont-Tremblant top the list in terms of buoyant residential sales, Joliette, Val-d'Or and Drummondville are last.
As for Montreal, the trend seems to be moving towards a seller's market. Indeed, while sales are expected to increase by 6% (projection based on the first 10 months), experts anticipate a drop in listings of 16% over the same period, as much as in 2010.
The major winner in this market is Montreal’s South Shore, buzzing with + 12% residential sales between January and October 2018. Laval follows this loan trend with + 7%.