June Sales: Even Lower Volume

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In our most recent blog we rued the fact that Westmount real estate sales volume dropped from 18 in April to only seven in May; now local agents have posted only four more houses sold in June, a record low for the month and less than one-third the average June volume for one- and two-family dwellings. It may be that families are no longer looking for larger houses with home offices; it may be that rising interest rates mean it will cost more to leverage the house. In our view, buyers do not want to get caught in a turning market and are hesitating about committing $2 million or more in an investment whose future its uncertain.

The four sales which did occur in June included a wide range of prices, from $1,249,000 lo $5,282,500, and mark-ups over valuation from 8.6 to 84.9 percent, but the very low volume distorts the averages and we will have to wait for the mid-summer market to confirm the trends.

Also sold on June were four condominiums, bringing to eight the number sold in the second quarter of 2022, down from 10 sales in the first quarter of the year, but the average mark-up over valuation climbed from 28.7 percent in the first quarter to 31.8 percent in the second quarter of the year. Both those averages are lower than the average 40.3-percent mark-up for the year among one- and two-family dwellings.

The number of listings available in mid-July is down from 85 to 81 houses, dropping more among the $2 to $4 million category than the more expensive houses, and actually increasing for listings under $2 million. Available rentals have increased, too, from 21 to 24, three of which are asking more than $10,000 a month. Three new house rentals were posted last month, bringing the year’s total so far to 13, less than half the 31 rented by the same time last year. The minimum asking price among the house rentals is $4,500 per month.

Adjacent-Westmount sales included two houses, a duplex and two condos in eastern Notre Dame de Grâce, but no activity north or east of Westmount (not including downtown condos).

Posted by andy Posted in: Monthly Analysis No Comments » June 2022