May Sales: Prices Remain High

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Westmount’s “average” home is now worth more than $2 million for the second month in a row, confirming the figures arrived at in April. Volume remained somewhat sluggish but of 15 sales, five were over $2 million, the most to clear that mark in a month since last June. The average mark-up over municipal valuation was 25.5 percent, recovering its stature after falling below 20 percent in April.

May is normally — along with March and April — among the busiest months of the year, averaging 19 one- and two-family sales, so the 15 last month is below average. So far this year agents have posted 56 sales compared to an average of almost 85 through May. The volume has not been this slow since 1993, leading up to the second Quebec independence referendum when prices were in a tailspin. This time, inventory is low and that is pushing prices to an all-time high.
In May, three houses sold for less than $1 million, something which hasn’t happened since February. The lowest price was $785,000 for a duplex on Irvine Ave., others were on St. Catherine St. and Prospect St. Highest price was $3,250,000 for a detached house on Forden Ave.

Now, suddenly, the spring market appears to be picking up speed, but very late in the season. AvaIlable houses have leapt to 96 in mid-June from 82 in mid-May, with only one asking less than $1 million and 60 — well over half — asking more than $2 million.

The condominium market, too, is showing signs of improvement with mark-ups in the last two quarters of 19 and 18 percent, compared to an overall average for last year of 5.6 percent. Eight condominiums sold in May for prices ranging from $279,000 to $1,660,000; added to six in April, the average for 14 sales in the second quarter is $881,357, up from an average $706,221 in the first quarter. And if the average mark-up of 18.7 percent is applied to the average condo evaluation of $843,096, this would move the “typical” condo value over the $1 million mark for the first time in history,.

Adjacent-Westmount areas were busier, too, especially the eastern section of Notre Dame de Grâce (east of Décarie Blvd.) which posted six sales in May alone. Already this year that district has seen 20 sales of one- and two-family dwellings, compared with 25 for all of last year. The average price is $1,224,101; north of Westmount (and south of Queen Mary Road) the average is $1,104,243. Volume has been slower in the Trafalgar-Daulac area and “Golden Square Mile,” which between them have 11 sales averaging just over $2 million.

Posted by andy Posted in: Monthly Analysis No Comments » May 2018