KEY CANADIAN REAL ESTATE TRENDS FOR 2019

Most people who are looking for a new home are less inclined to house-hunt or move during the winter. While there are some perks, such as having more locations available for visits and saving money on moving costs, homebuyers should be aware of the real estate trends that come with each new year.

LOOKING BACK AT 2018

Because of the policy changes made in 2018, homebuyers will see a different playing field in the Canadian real estate sector—particularly with the new mortgage stress test. When the announcement for the stress test came out in late 2017, the Canada Mortgage and Housing Corporation (CMHC) saw more than 46,000 homes were sold in Canada. In 2018, however, this figure decreased by 14%.

WHY THE DROP?

Homeowners were racing against the clock to buy a home before the new mortgage stress test came into effect. It measures homebuyers against higher mortgage rates compared to the contracted mortgage rate. This new method is used to ensure that homebuyers will be able to continue their mortgage payments should the interest rates increase.

While 2018 didn’t experience any economic shocks, it appears that 2019 will likely be a stable year for the Canadian real estate market. There is even a chance of some growth. According to the CMHC, the housing market will move in time to the movements of the economy, including income, jobs, and population; should one of these factors increase or decrease, property prices will follow suit. Additionally, the CMHC has forecasted that the average home price across Canada will not go higher than $525,000. However, regional real estate markets will have different results.

MONTREAL’S HOUSING MARKET IN 2019

Toronto and Vancouver have imposed taxes on foreign buyers, but Montreal was not in favour of this and is predicted to see a boost in foreign buyers. As a result, it’s likely that there will be fewer rental vacancies.

PricewaterhouseCoopers (PwC) has forecasted a 1.9 % growth in Montreal’s economy during 2019. Montreal is seeing rapid changes in various sectors:

• Residential. Construction is expected to be ongoing throughout the year at a healthy pace. There is an abundance of condo projects underway, however, the demand is higher than the supply. Montreal’s market is affordable compared to more affluent areas, such as Toronto and Vancouver. This year’s keyword is affordability.
• Commercial. Because Montreal is an island, there isn’t an ample supply of land available for large companies, so they’re forced to move elsewhere. The good news is the market is stable.
• Retail. Despite the wave of store closings in recent years, the demand for boutique and high-street retail experiences have skyrocketed. The only way for retailers to achieve success is through evolution with trends and what buyers need.

Montreal has become a hot market, catching up to Toronto, Vancouver, and other big cities within the nation. According to CTV News, about 900 condos and homes were sold in 2018 at prices that surpassed $1 million.

WHAT’S TO COME

Montreal is a great place to live as it has one of Canada’s best performing economies, according to Shupilov News.  By the end of 2019, the median price of a home in the Greater Montreal Area is expected to increase by 3%, reaching an aggregate price of $421, 306. Although Montreal’s real estate prices are not appreciating as they have in the past decade for Toronto and Vancouver, homebuyers are recommended to start their search now. Because it’s a seller’s market, one way to find an affordable place is to modify expectations. Groupe Lamarre can assist you with this and much more!

Looking to sell your Lasalle, Verdun, or southwestern Montreal property?

Call us today at 514-766-1000, or fill out our online form!