The somewhat languid pace of Montreal’s luxury market so far this year might change in the very near future, according to a report by Sotheby’s International Realty Canada released last week.
Overall high-end sales during the first half of September accelerated by 38% year-over-year, paving the way for improved long-term strength.
“The City of Montreal’s top-tier real estate market is set to maintain healthy activity into the fall,” the report explained.
“Steady absorption of resale inventory from luxury condominium developments completed in recent years sustained Montreal’s luxury condominium market over the summer months, foreshadowing solid fall performance,” Sotheby’s added. “Montreal remains well-positioned to set new records in 2019.”
This is in contrast to the almost flat 1% annual increase over the summer, a pace that generally veered close to last year’s levels.
Activity in the attached home sector is also expected to help market performance. This segment enjoyed an 11% annual increase with 41 units sold in July and August this year, compared to the 37 sold during the same time frame in 2018.
Sotheby’s attributed the slow pace during summer to a lack of available high-end residential assets.
“While consumer demand remains robust, diminishing top-tier housing supply continues to constrict potential activity,” the report explained.
Scarcity was especially apparent in single-family houses valued at over $1 million. Sales in this segment contracted by 3% annually, from 73 properties sold in July and August 2018, to 71 homes sold over this summer.
Meanwhile, luxury condo sales fell by 4% year-over-year to 26 units sold in July and August, compared to 27 units sold over the same period in 2018.
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