5 things you did not know about Montreal condo market
One of our expert participated yesterday at the “Fenêtres sur le Marché” organized by FCIQ, it was a very interesting events where they gave stats about real estate market in Montreal and also the condominium market.
Note: We thanks the FCIQ for their great work and apologize to put French slides in this english post.
Here are 5 things you did not about the Montreal condo market :
Condo sales increased by 3%
People who will tell you that nobody buy a condo are WRONG. The fact is people are still buying condo in Montreal and the chart below shows that the sales of condo increased last year.
Price also increased by 3%.
If you read or heard about a crash, it is also wrong. The median price for a condo in Montreal area is $238,000 and increased by 3% last year. We are talking here with the median price and not the average price.
Price follows the house and plex market variation
If someone is telling you that price fluctuate better in house than condo, they are wrong. This chart demystify the myth that housing or plex market are doing better than condo in market in terms of price variation.
The chart below shows that they have the same variation for the past 5 years.
People pay a premium for a nice location
When you hear location, location and location. It is actually more true in the condo market than any other market.
- People are willing to pay 4.5% higher for a better Walkscore.
- People are willing to pay 6.2% higher to live in downtown Montreal.
- People are willing to pay 18.8% higher to near a subway station.
- People are willing to pay 15.9% higher to have a garage in their condo.
Empty condos in Montreal is a MYTH
Sales are doing well with average of 71% sold units for a delivered project in downtown Montreal. Note this is an average and some condos have been sold out like Tour des Canadians, L’Altitude, Saint M condos or Altoria.
If you are a condo investor, your condo will be rented. See below the chart showing how the vacancy rate decreased to 2.4%.
The Montreal condo market is healthy and you should not fear it. Sales and prices increased at the same time that vacancy rate decreased. Condo is still an affordable choice with a $238,000 median price in Montreal area, $320,733 in Ville Marie or $274,000 in Sud-Ouest (Griffintown).
We are Montreal condo experts and we will help you in any need you have for a condo in Montreal, contact us here and we will get back to you shortly.