Montreal’s recent boost in condo sales seems to be dropping off, following dramatic highs in values and construction.
The National Bank’s House Price Index for condos revealed Montreal suffered a 4% fall in the six months to January.
Despite the plunging figure, National Bank senior economist Marc Pinsonneault said he is not calling for a collapse.
He shares sentiments with economists at Desjardins Economic Studies and the Canada Housing and Mortgage Corporation and predicts flat prices or negligible gains in the next two years.
“Promoters have to manage reduction in the number of new vacant condos,” Pinsonneault said.
This foresight is also aligned with the Quebec Federation of Real Estate Board’s assessment, which said a “surplus of inventory in the resale market, high supply of new condos and less robust demand means the median price will stay flat.”
“The market will not become rebalanced in 2015,” said Paul Cardinal, the board’s market analyst manager.
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