After a record of 2018 that countered national trends, home prices for Montreal should continue to rise next year – at a rate higher than Toronto and Vancouver, according to a new report.
The city posted the highest rate of home appreciation in Canada's three largest metropolitan areas, according to a survey released on Friday by Royal Lepage.
Dominic St-Pierre, vice president of brokerage and general manager of Quebec, predicts that the Montreal area will remain a sellers' market throughout 2019 and probably longer.
"The Montreal market is very active because of its affordability compared to other Canadian cities and unprecedented economic conditions, including rising wages," he said.
The Montreal real estate boom continued in the last quarter of 2018.
Prices rose 4.1% compared to the same period last year, reaching an aggregate price of $ 407,230.
The price of a two-story home also rose 3.5 percent over the period, to $ 517,190.
St-Pierre said Montreal would likely maintain its leading position in the Canadian real estate market in 2019, although the pace of growth may slow.
"It's modest but steady growth," he said.
He noted that Montreal has not experienced the same price appreciation seen in the Greater Toronto and Greater Vancouver markets over the last decade.
Royal LePage predicts home prices in Montreal will increase by 3% compared to 1.3% in Toronto and 0.6% in Vancouver.
The price of a home in the Montreal metropolitan area is still about half the price of a house in the Toronto area and about a third of the price of those that are on offer in the largest market in Vancouver.
A separate report released earlier this week on the Canadian luxury market also found that Montreal proved to be the exception to a slowdown seen in other parts of the country.
Vancouver, Toronto and Calgary have seen steep declines in high-quality real estate sales in 2018.
But home sales in Montreal for more than $ 1 million have risen 20 percent a year, although homes sold for more than $ 4 million have fallen 8 percent.