Greater Montreal real estate market remains a hot sellers' market with demand high and supply low

File photo of a house for sale in Westmount. (THE CANADIAN PRESS/Ryan Remiorz)

MONTREAL — Soaring prices and shortage of single-family units have caused Montreal-area real estate sales to drop in the month of June.

The Quebec Professional Association of Real Estate Brokers (QPAREB) released its June sales statistics for the Montreal Metropolitan Area, and they show a seven per cent decrease in sales from June 2020 (4,619 units).

“Residential sales in the Montreal area fell significantly in June, mainly due to a historic shortage of single-family homes available for sale and a sharp increase in prices that also extended to the condominium segment," said QPAREB market analysis department director Charles Brant.

Brant added that single-family homes in Montreal suburbs were central to the strong numbers in June 2020 after the first COVID-19 wave. This year, those sales have dropped as the supply dipped and prices soared.

The QPAREB notes that the Greater Montreal Area real estate market remains hot and that most houses and condos are selling for above the asking price.

The median price of single-family homes is $508,000 (up 29 per cent), condominiums: $365,000 (up 20 per cent) and plexes: $703,000 (up 16 per cent).

Sales on the Island of Montreal have increased 11 per cent driven mainly by condo sales, the QPAREB says, while sales decreased in all suburban areas.

The trend is explained by a decrease in supply of single-family homes (-37 per cent) and condos (-4 per cent), while plexes' supply has increased by 29 per cent.