A dynamic real estate market like Montreal’s will be poised to present its own challenges as well as opportunities in 2024. It is expected that in the Fourth Quarter in the Greater Montreal Area, the aggregate price of homes will increase by 5.0%, reaching an estimated $610,260 in the Greater Montreal Area. As we take a closer look at single-family detached properties, we anticipate an increase of 4.5%, reaching $684,998, while condominiums should rise by 6.0%, reaching $471,912.
Even though efforts have been made to control inflation, housing shortages continue to drive prices upwards despite all efforts to stop them from happening. In order to address this shortage of housing, the Quebec government intends to spend $1.8 billion over the next five years on improving housing accessibility, which will be done through investments across all levels of government.
Consumers will have to adapt to a new reality as interest rates rise, according to Alp Perez, a Montreal Real Estate agent who is one of the top rated in the area. In spite of temporarily restraints on property price increases, this adjustment offers households a chance to reconsider their purchasing choices. In order to restore affordability, the gap between supply and demand must be addressed, with more than 1.2 million housing units needed by the end of the decade.
A record drop in the number of housing starts in Montreal during the first half of 2023 has caused Montreal to experience unique dynamics in the housing market during this period. There has been some adverse impact on builders and developers because of rising borrowing costs, but a potential decrease in interest rates could boost condominium demand, which is expected to exceed the appreciation rate for single-family homes in the future.
It is clear that there has been a decline in consumer confidence in the past few years due to strikes in the public sector and layoffs in the industry. Due to the large amount of household debt, caution may be necessary when making major purchases in the future. During the pandemic, savings acquired during the period have been depleted, so when making major purchases, it is important to be cautious.
Clearly, 2024 will not be the best year for the property market, it may be a slow start, much like the period that ended in 2023. However, as interest rates begin to decline, we are confident that there will be a rapid turnaround in the market that should lead to an active industry in 2024.
There is a lot of complexity in the Montreal real estate market, so buyers, sellers, and professionals who are involved in the industry should be aware of the changes in trends as well as the government’s involvement. It is imperative for Montreal’s real estate market to be adaptable and strategic in order to be successful in the face of constant changes, which is the reason why it is so important to be flexible and strategic in decision-making.