Sellers return to Montreal housing market in Q2

 At the beginning of 2024, motivated buyers anticipated lower interest rates, but the number of sellers was limited, putting pressure on property prices. With more inventory available in the second quarter, sales accelerated.

“The year started off like a lion, with buyers rushing in even before the Bank of Canada changed course on its monetary policy,” said Marc Lefrançois, chartered real estate broker at Royal LePage Tendance. “In the first quarter of the year,  sellers returned to the market, but in smaller numbers than buyers, putting upward pressure on property prices. Then, in the second quarter, sellers made a stronger comeback, increasing the supply on the market and encouraging a rise in transactions.”

Lefrançois highlighted that there are two types of buyers currently active in the market: those determined to make a purchase early in the year and those waiting for a larger supply of properties and further interest rate reductions.

 “Other buyers who have yet to come forward are waiting for a larger supply of properties and further downward adjustments to the Bank of Canada’s key lending rate before taking the plunge,” he added.

The recent federal budget announcement of an increase in capital gains taxation on second homes and investment properties doesn’t appear to have significantly impacted listings, according to Lefrançois.