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montreal canada property market stable and growing

News Posted On: 06 January 2011

Homes in Montreal have increased in price over the last couple months according to the Royal LePage House Price Survey and Market survey. Low interest rates as well as more confidence in the potential of the market have contributed to such an increase. Consumers believe that the property market will be more stable and balanced in 2011.

The average price of a bungalow surged 8.7 percent during the fourth quarter, bringing the price to $265,383. Standard two story homes increased 8.7 percent as well bringing the average price to $375,222. Condominium prices increased as well at 11.3 percent to $240,000.

Buyers are certainly returning to the market as during November sales were high. The South Shore market did better than the Montreal market because of lower prices, the appeal of the suburbs, as well as expected tax increases in Montreal.

Regarding number of units sold, there was a bit of a drop in November. The total number of homes sold was a record high 6 percent but also a 6 percent decrease in transactions as well. Basically this means that less homes were sold, but the ones that were sold were sold at a higher price as there was a lower supply of homes on the market.

It is predicted that this New Year the market will be more stable as supply and demand even each other out and the economy continues to stabilize and grow.

An increase of 4 percent in property values is anticipated as well as the continuation of low interest rates, bringing more stability to the region.

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