Resale market slows, but prices stay strong

Montreal's housing resale market continued to slow in October, year over year, but prices remain strong because of "market conditions" favouring sellers, the Greater Montreal Real Estate Board said yesterday.

Sales of residential homes dropped 19 per cent in October, compared with the same month in 2009, with plexes the hardest hit housing category, Multiple Listing Service data show.

Year to date, sales are still up three per cent over last year, because of a sizzling first quarter.

"After posting record sales levels in October 2009, it's normal that the Montreal real-estate market was less active this October," said Diane Menard, vice-president of the GMREB's board of directors.

"Furthermore, 2009 and 2010 were very different years on the real-estate market: 2009 began with a significant decrease in sales due to the recession and ended with record-high sales. Conversely, 2010 started off strong with record-breaking months but sales have returned to their usual levels."

The median price of a single-family home in the Montreal area grew eight per cent compared with October 2009, reaching $260,000.

The median price of condominiums increased by 12 per cent to reach $218,000, while the price of plexes increased by nine per cent to reach $380,000.
source: www.montrealgazette.com