While rising prices may pose a challenge for some first-time buyers, this city’s real estate will see sustained growth.
While the rest of Canada’s urban housing markets were deflating under the pressure of the mortgage stress test and portents of potentially higher interest rates, Montreal was one of two cities to report price growth in 2019. (The other city was Halifax.)
In fact, Montreal is the only city to consistently report positive price growth over the last six months, according to data from the Teranet-National Bank House Price Index. And it looks as if that growth is going to continue, at least for the foreseeable future.
“Canadian housing activity appears to be broadly stabilizing, as there are signs that the market has largely digested the many policy changes,” explained Bank of Montreal chief economist Doug Porter in his May 2019 report. Combine this with the ongoing evidence of slowed economic growth and the resulting halt in near-term interest rate hikes, and it appears Montreal may lead the country when it comes to property price growth.
While this is great news for sellers and those already in the housing market, this trend could throw up potential hurdles for first-time buyers. Here are the results for Montreal of this year’s Where to Buy Real Estate report.
Average Home Price
Percentage of neighbourhoods
with average housing prices
below city average
Average Five Year Return