July 20, 2009 – The Montreal real estate market is still hot, but it is showing signs of cooling. Prices have almost doubled in the last 5 years, and given the current economic situation, it is becoming more difficult to sell properties for top dollar. It seems that we are slowly moving towards a balance market, where buyers are able to negotiate a bit more. As is typical in mid summer, the market is relaxing a bit. Seller are going on vacation and there are fewer buyers. Things should start to pick up a bit in August and September.

Condo sellers can still expect to sell at relatively high prices, especially if the condo is located Downtown, in the Plateau or in Rosemont / Villeray. Saint Henri and Verdun are also bright stops as the neighborhoods are in full development. Any condo priced at below $250 000 should be expected to sell relatively quickly. Higher priced condos can expect to take a bit longer, perhaps about 3 months.

Revenue properties (Duplexes and up) are still selling very well. In the Plateau and Rosemont, revenue properties are really moving fast, especially those that provide a reasonable income with stable tenants. Sellers definitely have the upper hand.

One area that I am seeing some weakness is in higher priced home sales. Homes priced above $750 000 are proving difficult to sell and visitor traffic is down substantially. This market should start to improve over the next few months, so if you are planning to sell, now is your opportunity to do some light renovations (painting, landscaping) to improve the look of your home.