Montreal’s home price growth is considerably outstripping the national average as well as the pace set by the leading markets, according to the Teranet–National Bank of Canada House Price Index covering February 2019.
The city’s real estate prices increased by 5.15% year-over-year in February, reaching a historic high. To compare, the Teranet HPI found that overall prices nationwide saw only a 1.87% annual increase, which was noted to be the third smallest non-recession increase behind July and August of last year.
“The market peak was reached in September 2018, and prices are down 1.43% from there,” Better Dwelling stated in its analysis of the Index.
In addition, Toronto saw a 3.56% annual increase, while Vancouver suffered a 1.11% shrinkage during the same period.
The Montreal real estate segment is also benefiting from a strong economy and a vibrant job market, the combination of which is boosting purchasing power of the city’s working-age Canadians, according to the Canada Mortgage and Housing Corporation.
“The Montreal and Québec areas have shown strong economic growth and particularly vibrant job markets in the last two years. This certainly contributed to the financial stability of households and supported their ability to make their mortgage payments on time (or less than 90 days late),” CMHC said.
The city’s mortgage delinquency rate stood at 0.23% for mortgages with a value at origination of less than $100,000, and 0.30% for accounts involving $400,000 and greater.
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