Montreal-area home prices surged in May compared to a year ago when the province was grappling with the onset of the pandemic, Quebec's real estate board said Wednesday.
The median price of a single-family home soared 34 per cent to $496,000 from $370,000 while condos hit $365,000, up 30 per cent from $280,000 in May 2020.
Prices for plexes with two to five units increased 17 per cent to $701,000.
“In a context of soaring prices for single-family homes in the Montreal area and the easing of the health crisis, many households are interested in condominiums, which are experiencing a meteoric rise in prices,” stated Charles Brant, director of the association's market analysis department.
“In this context, small income properties (plexes) are also very popular among investors, particularly in areas surrounding the Island of Montreal, which is supported by a rental market that is expected to tighten as the purchasing power of households deteriorates.”
Overall Montreal-area home sales fell by almost 14 per cent between April and May even as the province began reopening from pandemic lockdown measures.
The Quebec Professional Association of Real Estate Brokers said May saw 5,398 sales, down from 6,237 the month before but up from 3,267 during the same period last year.
The board said the year-over-year change was so dramatic because in May 2020, the province was grappling with COVID pandemic lockdowns that slowed sales.
The board said Montreal saw the number of new listings hit 6,508 in May, down from 7,183 in April but up from 4,786 last May.
Active listings reached 11,481 in May, a drop from 11,559 in April and 13,521 last May.
On the Island of Montreal, 2,118 homes were sold in May, up seven per cent from two years earlier and attributable to increasing demand for condos.