December real estate analysis
The end of 2023 marks a significant turning point in Montreal’s real estate sector, recalling the exceptional year of 2018 in terms of both market dynamics and pricing trends. In this article, Kyle analyzes the key data, to better understand the current situation and anticipate the outlook for 2024. December’s real estate analysis is here!
A Market in Echo with 2018
The year 2023 ended with a volume of real estate transactions similar to that of 2018, which had been a remarkable year for the Montreal real estate market. This similarity indicates market resilience and vitality, despite economic fluctuations and global challenges.
Median price for single-family homes: a slight drop
The median price for single-family homes was CAD$710,000, down CAD$25,000 from 2022. The moderate decrease in prices could reflect a normalization of the market after the spectacular rises of previous years, making real estate slightly more affordable for some buyers.
Stable lead times
The average number of days to sell a property on the island of Montreal remained stable at around 61 days, a figure identical to 2018. This consistency suggests a balance between supply and demand, with a reasonable selling time that does not disproportionately benefit either sellers or buyers.
Resilience despite rising mortgage rates
Despite rising mortgage rates, the Montreal real estate market ended the year on a strong note. This resilience is a testament to the strength and attractiveness of the Montreal market, capable of maintaining its momentum even in a tighter financial climate.
Forecasts for 2024: A Stabilized Market
For the coming year, 2024, predictions suggest a similar number of transactions to 2023, indicating a stabilization of the post-pandemic market. This “new reality” is probably the result of adjustments made by market players in response to the changes brought about by the pandemic.
Conclusion
In summary, 2023 witnessed a remarkable performance from the Montreal real estate market, with key indicators reflecting appreciable stability and maturity. The slight decline in single-family home prices, combined with stable selling times and resilience in the face of rising mortgage rates, paints an optimistic picture for 2024. Buyers and sellers can look forward to a balanced market, reflecting the adjustments and lessons learned from previous tumultuous years.
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