Home prices are predicted to increase in Q4 of 2023 across Greater Montreal, as the market stabilizes, according to recent reports from Royal LePage Canada.
The Greater Montreal Area registered a slight year-over-year increase in the third quarter of 2023 according to the results of the Royal LePage House Price Survey released October 2023. The average home price increased 3.7% in Q3 2023 to $575,400, compared to Q3 2022, and a quarterly increase of 0.6%. Also reported was an increase in year-over-year residential real estate transactions for Q3 for the first time since Q2 of 2021 despite price stabilization.
In addition to the house price stabilization reported by Royal LePage in Q3, the reports also predict a year-over-year price increase of 8% for Q4 of 2023 compared to Q4 2022, as outlined by the Royal LePage 2023 Market Survey Forecast. Therefore, the average price of a property in the Greater Montreal Area is estimated to increase by 2.1%, to $587,844 between Q3 and Q4 of 2023.
“The demand for property at the moment is incredible,” Said Royal LePage Quebec vice-president Dominic St-Pierre, in the report. “We’re talking about a lack of inventory on a recurring basis. There are a lot of new arrivals, the population of Quebec is growing and we need to house those people. There simply aren’t enough properties available in the rental or resale markets.”
Though different from region to region, the report suggests that even with increasing interest rates overall demand is expected to continue as inventory remains low throughout the Greater Montreal Area, further enforcing the prediction for an increase in average home prices for Q4 2023.
Greater Montreal real estate market stabilizes in the third quarter, with moderate increase expected in final months of 2023 | Royal LePage
National house price chart – Q3 2023: rlp.ca/house-prices-Q3-2023
Updated Royal LePage Forecast Chart: rlp.ca/market-forecast-Q3-2023