Montreal sees 'shift in market dynamics' as home sales and prices slip

Montreal's real estate market slowed in July, joining other Canadian housing markets showing weakness as interest rate hikes weigh on demand.

According to the Quebec Professional Association of Real Estate Brokers, the median price of a single- family home in Montreal was $550,000 in July, down $30,000 from the April peak. The prices are 10 per cent higher than a year ago.

Condominiums saw their first price drop this year to a median of $391,500, but that is still nine per cent higher than last year.

The number of homes changing hands fell 18 per cent from the year before to 3,080 in July. The board said that the market is showing signs of intensifying.

The director of QPAREB's market analysis department said in a press release that the shift in market dynamics is confirmed. The market has slowed more slowly than other major Canadian cities because of the rate hike.

While the summer season is usually quieter, we are seeing a marked deceleration of July's sales pace.

The number of active listings in the city rose for the sixth month in a row.

Montreal is one of a number of Canadian cities where the pace of sales is slow due to rising rates and fears of a recession. The full percentage increase in July could cause more strain on these markets.

Quebec City's housing market remained strong, with sales rising one percent over last year. There are signs that the market is slowing according to the Quebec brokers association.

Even if this increase will have to be confirmed in August and September before we can talk about it being a trend, it is a sign of a market slowdown and much weaker price growth or their stabilization over the next few months, which is in line with the context of the sharp rise in interest

The email address is shughes@postmedia.

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