2023 was a year of challenges and opportunities for the Montreal real estate market. With Kyle Shapcott’s in-depth analysis and up-to-date data, we dive into a detailed retrospective of key trends.

Housing crisis and solutions :

The housing crisis has been one of the major challenges facing Montreal’s real estate sector. The combination of high interest rates, limited inventory and a demand that was reluctant to buy in the current climate meant that the market had to adapt and show resilience while waiting for better economic conditions to thrive.

Data for 2023:

APCIQ data, 2023.

Analysis factors include :

• A market echoing that of 2018
• Slight decline in single-family home sales
• Stable sales lead times
• Résilience malgré la hausse des taux hypothécaires

Read our full annual market analysis in the Kyle latest analysis.

Influence of interest rates and the return of conditional offers :

A key trend has been the impact of interest rate fluctuations on market affordability. This has led to a change in buying and selling strategies, notably with the return of conditional offers.

This transaction tool offers an additional guarantee to buyers, enabling them to protect the financing of their property by securing a prior sale of the old property. It’s an effective tool for the market, but ultimately penalizes the market, which sees properties in force for an extended period and opportunities lost for investors.

Don’t miss our detailed analysis of the return of these tools in our article on the subject : The return of conditional bids: Analysis.

Montréal real estate 2023: Analysis

Although this has been a fairly stable year for the market, that doesn’t mean it’s doomed to weak performance in 2024.

Assuming that interest rates are reduced in the future and that the housing crisis is resolved thanks to federal action (see below), Montreal’s real estate potential remains enormous, and the city continues to attract more and more families and investors thanks to its many strengths:

• Lower interest rates
• Investments in the city
• Ongoing and future development at all levels of Montreal society

Discover the complete analysis and long-term real estate vision for the city of Montreal, click-here.

Sustainable solutions to the housing crisis

Finally, the market could be triggered by the government’s efforts to resolve the housing crisis.

We’re convinced that solving inventory problems, emphasizing innovation in the construction of affordable housing and getting government regulations on board will put an end to the crisis and bring buyers back into the market to revitalize it and restore sustainable growth.

See our complete study on this subject : Real estate analysis- Towards a solution to the housing crisis? ?

Conclusion

As 2023 draws to a close, a number of highlights have punctuated a rather stable year in terms of market growth. Recent events suggest optimism for the 2024 market and opportunities not to be missed.

To discuss your real estate projects, contact our team of montreal real estate broker.

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