Montreal is the country’s only strong market for property sellers, with balanced conditions emerging as the norm in most of Canada’s large cities, says the Re/Max fall market trends report published yesterday.

Despite softer sales during the summer months, a three-per-cent decrease in active inventory year over year has bolstered prices, the report says. Year to date (until August)

In a nutshell:

* The average price of a residential property in Montreal grew 8.7% – From $266,125 in 2009 to $288,923 to this year.
* Sales of properties priced from $200,000 to $350,000 are moving quickly, with first-time buyers a driving market force.
* The shortage of resale inventory at this price point has prompted several new construction projects targeting first-time buyers.

“Buoyed by solid economic fundamentals, Canada’s second-largest centre also has one of the greatest affordability levels,” the report says. “Yet home-ownership rates are low due to the high percentage of renters. As such, there is tremendous room for growth in the years ahead.”

Also: Sales of high-end real estate also soared in Montreal, with properties worth $1 million and over rising 20 per cent year over year. Yet Montreal’s high-end niche has actually grown more slowly than upscale real-estate markets in other Canadian cities. Sales of high-end homes in Toronto, for example, were up more than 52 per cent, year over year, the report says.

Source: The Montreal Gazette