Is Montreal’s Real-Estate Market About to Eclipse Vancouver’s?

  • By: mvadmin
  • Date: March 9, 2019
  • Time to read: 2 min.

According to an article in Bloomberg, Vancouver is on pace to lose its status as Canada’s second largest housing market to Montreal.

“While still, Canada’s most expensive city for housing, a recent collapse in sales has led the value of real estate transactions substantially lower. That leaves Montreal’s soaring market poised to overtake Vancouver,” the article said.

Montreal is the business capital of the mostly French-speaking province of Quebec and Canada’s second largest city by population. But it was left out of the boom that saw home prices in Toronto and Vancouver surge to levels that made those cities unaffordable and prompted a rush of regulations to slow down them down, the article added.

Peak Vancouver?

In January, the total dollar value of real estate transactions in Vancouver fell to C$1.7 billion ($1.3 billion) on a seasonally adjusted basis, the weakest level since 2013 and down 42 per cent from a year earlier, according to data released by the Canadian Real Estate Association. Meanwhile, the value of transactions in Montreal reached C$1.63 billion to start the year, an increase of 18 per cent from last January. Montreal — which has much cheaper homes, but more transactions — hasn’t been this close to Vancouver since 2008, the Bloomberg article said.

Montréal is the largest city in Canada’s Québec province. It’s set on an island in the Saint Lawrence River and named after Mt. Royal, the triple-peaked hill at its heart. Its boroughs, many of which were once independent cities, include neighbourhoods ranging from cobblestoned, French colonial Vieux-Montréal – with the Gothic Revival Notre-Dame Basilica at its centre – to bohemian Plateau.

Vancouver, a bustling west coast seaport in British Columbia, is among Canada’s densest, most ethnically diverse cities. A popular filming location, it’s surrounded by mountains, and also has thriving art, theatre and music scenes.

Montreal Outlook

Experts have said that Montreal remains relatively affordable and that could be the driving force behind people wanting to buy homes there.

Montreal’s benchmark home price was C$349,300 in January, up 6.3 per cent from a year earlier. That’s still far less than the Vancouver price of C$1.02 million, which is down 4.5 per cent, according to experts.

The most significant real estate transactions are still in Toronto.