October 2012 Downtown Condos Market Report
Downtown Montreal condominium sales, as reported on MLS® this October, reached this year’s low of 11 sales. Even so, it took, on average, a normal delay of 95 days on market (DOM) to sell this month, dropping from one of the higher numbers for the year last month. I was concerned last month that it was a sign that condo sales were slowing. However, the third quarter report from the Greater Montreal Real Estate Board (GMREB) has calmed my fears further regarding the market drop we read about in the media. The drops reported are broad statistics for large regions.
Here on Montreal Island, in Centre South, I have my doubts we have to worry at this point. Remember, that in an economic downturn, the best real estate sectors lower last and come up faster sooner on the recovery side. In general, the lowered sales were due to the new mortgage rules imposed by the Federal government. It was expected to see some activity drop in the market and I hope this is what we experienced. Have a look at the 2012 statistical trend-line for the Montreal area up to mid November.
Condominiums sold for an average price of $460,818 down significantly this month to spring 2012 levels though still within the norm for pricing this year. 22 contracts expired and new properties to market jumped to 50 from 40 last month, still within the range for the year. Total active properties ended up at 286 for October. The absorption rate for condominium property inventory in downtown was 26 months.
The downtown sector reported here is known as Centreville-Ouest (Downtown Center West) bordering the mountain to Rene Levesque and University Street to Atwater. Condo units vary greatly from converted multiplexes to high-rise towers of all sizes, quality and age. Location closer to the mountain (Mont-Royal) and the centre of downtown will increase prices as will the elegant sub-sectors tucked up close to Westmount, close to the Museum of Fine Arts on Sherbrooke Street and close to Peel on deMaisonneuve and lower in the sub-sector closer to the old Montreal forum below deMaisonneuve nearing Atwater.
More complete market information relevant to your personal needs and goals is available. These statistics, as reported on MLS® are presented monthly for a comparative view of local neighbourhoods. Private sales, sales that are reversed and sales not yet confirmed are not included. Complete statistics are available to clients purchasing or selling their property(s).