(CEP News) - Despite falling single-family home sales in Montreal and rising listings in the third quarter, a tight real estate market continues to drive prices higher, the Greater Montreal Real Estate Board (GMREB) said Wednesday.
The average price of a single-family home in Montreal was $273,872 in the third quarter, up 6% from a year ago despite existing home sales being down for the same time period, the GMREB reported. Overall home prices rose 5% in the quarter compared to a year ago, following a 4% increase in the second quarter and a 6% year-over-year rise in the first quarter.
Single-family home sales fell 2% from a year ago to 5,098 transactions, with sales on the Island of Montreal leading the decline by falling 11%. Overall sales in the Greater Montreal Area, however, are actually up 1% to 8,463 in the quarter, despite the slowing economy.
"The introduction of new rules relating to the maximum amortization period and the minimum down payment required for insured mortgages may have prompted a number of households to purchase earlier than planned", said Stéphane Duguay, market analyst at the Canada Mortgage and Housing Corporation.
