Montreal home prices flat in last quarter but expected to grow in 2016
Low loonie and strong U.S. economy should offset weak Quebec economy, Royal LePage predicts
Home prices in the greater Montreal area had the lowest increase among metro areas in Canada in the last quarter of 2015, just 2.3 per cent higher than they were in the same period in 2014.
The median price of a home in the region was $340,200 in the last trimester, according to the latest house price survey by real estate company Royal LePage.
It was also lower than the national average increase of 6.5 per cent, with a median home price of $500,700.
Vancouver and Toronto led most of the growth nationally, with home prices rising as follows:
Greater Vancouver Area
12.4 per cent increase.
Median home price: $949,500.
Greater Toronto Area
8.6 per cent increase.
Median home price: $605,900.
However, in Montreal, there was a lot of variation, depending on the neighbourhood and the type of home.
The highest increases happened in:
Two-storey houses in the West Island: 10.7 per cent.
Bungalows in central Montreal: 7.9 per cent.
Condos in eastern Montreal: 7.1 per cent.
There were also price drops in certain categories:
Bungalows in eastern Montreal: -3.2 per cent.
Condos in central Montreal: -2.3 per cent.
Bungalows in the West Island: -0.8 per cent.
Off-island homes also saw price increases across the board, with the strongest growth in two-storey homes and condos on the South Shore.
Royal LePage expects the rise in housing prices to slow down in 2016 due to the weaker economy in Western Canada and low home affordability in Vancouver and Toronto.
However, the cheap loonie and stronger U. S. economy – leading to more exports – are expected to offset these brakes somewhat.