The price of a property in the greater Montreal area increased by 19.7% in the last quarter of the year 2021 compared to the same period in 2020, according to a study by Royal LePage.
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According to the study, released Friday, the median price of a detached single-family home and condominium rose 20% and 18.2% to $ 595,500 and $ 428,900, respectively.
The increase in single-family homes in the metropolis is around the Canadian average (21.1%), but that of condominiums and above three percentage points thereof. The markets of Saint John, New Brunswick (increase in the median price of the real estate aggregate of 36.3%) and Kingston (increase in the median price of the real estate aggregate of 38.1%) appear to have experienced the largest increases. strong.
However, this sharp rise in prices should slow down in 2022, according to Royal LePage, which forecasts that the median price of the Montreal real estate market could increase by only 8%, against 19.7% in 2021. The majority of transactions would take place in the first quarter of the year, according to Dominic St-Pierre, vice-president and general manager of Royal LePage in Quebec.
“Historically, when an interest rate hike is on the horizon, home buyers try to ‘beat’ the market and rush their purchase. If the Bank of Canada maintains its intention to hike its key rate, it is expected that consumers, and especially first-time buyers, will try to complete their transaction quickly at the start of the year, ”he explained. .
Over the same period, the median price of a detached single-family home is expected to increase 9% to $ 648,600, while that of a condominium is expected to increase 6.5% to $ 447,300.
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