Too many condos cause housing market slump in Montreal
Condo listings in Quebec rise 13 per cent while sales decrease by 3 per cent
A glut of condos in Montreal have fostered ideal conditions for a housing market slump.
- How the housing market has cooled in most of Canada
- Canadian home prices in June up almost 7% to $413,215 average
Marie-Michele Rousseau-Clair put her condo in Rosemont on the market two months ago in preparation for a move to Trois-Rivières.
She’s worried because it still hasn’t sold.
"I've had about seven or eight visits. I’ll be really concerned if I don’t have any visitors or calls," she said.
Rousseau-Clair is not alone. During the past year, the number of Quebec condo listings rose 13 per cent but condo sales dropped three per cent. Condos are also spending a longer time on the market — an average of 115 days in Montreal.
The Quebec Federation of Real Estate Boards blames job losses and the recent provincial election for creating uncertainty in the housing market.
Remax real-estate agent Mike Abatzidis said there are simply too many condos on the market.
"I had a condo downtown — it was really hard to sell because they were building brand new condos. A lot of buyers will just say, 'I want a brand new condo renovated the way I want,'" Abatzidis said.
The longer a unit is on the market, the more likely the seller may be to make a deal. It’s good news for potential home buyers, he said, but not good news for real-estate agents and people looking to sell their homes.
"If there's a street with 10 condos for sale, the buyer has a lot of choice and they can wheel and deal on the price. You don't want that. You want to price it right, create hype and urgency around your condo and sell it," he said.
There are at least a couple neighbourhoods bucking the trend, however. Abatzidis said there is still a high demand for housing in the Plateau and Villeray.