Montreal posts record August home sales as Costs rise

Montreal’s hot real estate market continued to sizzle last month with record August sales and rising costs.

The Greater Montreal Real Estate Board says booming condominium sales drove an eight percent growth in residential sales across the Montreal area.

There were 2,899 sales, with condominium transactions surging 19 percent. Single-family houses that account for over half of earnings rose four percent.

The Island of Montreal led the way with a 12 percent rise in sales.

Paul Cardinal of the Quebec Federation of Real Estate Boards credited the continuing profits to strong job creation, consumer confidence and foreign migration.

In addition, he said buyers were fast-tracking buys to conquer an expected interest rate increase, which was announced Wednesday.

Sales have increased each of the past 30 months, except July 2016 if there were unchanged. The final monthly drop in sales happened in February 2015.

That is far different than in Toronto, where sales of detached, semi-detached, condos and townhouses dropped between 25.7 and 41.6 percent in August.

The average sales price in the Greater Toronto Area fell for a fourth-straight month, falling 1.8 percent to $732,292.

In Greater Vancouver, home sales surged 22.3 percent while the composite benchmark price was up 9.4 percent to $1,029,700.

Both Toronto and Vancouver have implemented a 15 percent tax on overseas buyers in efforts to quell rising home prices.

Montreal remains a relative bargain though the typical real estate cost increased 4.1 percent to $374,333 in August One potential area of weakness was a downturn in purchasing homes over $500,000. They grew 14 percent, down from 57 percent in July.

Courtesy: The Globe And Mail