The Canadian real estate business is a tremendous thriving market that puts lots of money into the pockets of investors daily. However, the Montreal real estate vs. Toronto and Vancouver debate sparked reactions amongst investors, and they are wondering if Montreal is becoming the new Canadian housing hub. Here is our real estate team’s take on the debate.
Is Montreal Catching Up to Toronto and Vancouver?
High demand is one factor that drives the Canadian real estate boom. It is one of the reasons Canadian real estate is costlier than other real estate markets in North America.
Toronto, Ontario, and Vancouver remained top cities in Canada and the first choices for foreign investors for so long. Despite the unpredictable nature of the real estate market worldwide, Canada has continued to remain top because of the huge revenue the aforementioned cities generate from the high number of foreign investments.
Remember, people migrate to Canada because of the appealing culture, increased job opportunities, and more. These factors are responsible for the price uplift in these popular cities. They have helped Canada remain a top contender in the real estate industry, even though Covid-19 relatively slowed sales.
Factors like the pandemic can affect sales, and a once booming market can slow. Vancouver and Toronto are somewhat experiencing overheating and price acceleration, causing some imbalances in the market.
Currently, the city of Montreal is becoming a safe spot for investors at the moment. Looking at the recent records and accomplishments, Montreal has witnessed a massive improvement in Sales to New Listings Ratio in recent years, discarding the underdog status and climbing to the top in the real estate market.
According to Canada Mortgage and Housing Corporation’s assessment of Q4, 2020, the vulnerability of the housing market is moderate, compared to Toronto.
While Toronto and Vancouver experienced a slight decline in price rates due to increased rates, ownership systems, and new tax reforms, Montreal is soaring with sales. It’s looking like Montreal is going to knock off the aforementioned famous cities off the top spot pretty soon if sales would remain so.
Increase of Home Price Listings in Montreal
As earlier stated, Montreal’s SNLR ratings have appreciated in recent years more than Vancouver and Toronto. CREA reported an increase in property sales in Montreal over the last two years, although it maintained reasonable benchmark prices.
Investors have identified Montreal as the new hub for real estate investment, and they can’t wait to take advantage of the city’s exponential growth.
Many investors wonder why Montreal suddenly became a trending city for real estate investment, competing with Toronto and Vancouver cities. Our experts will answer the “why.”
Demand for More Affordable Homes and Properties
This is one of the principal reasons Montreal has become a hot spot for real estate investment. The city is regarded as one affordable place to invest in the real estate industry with ample opportunities that come with it.
When looking to invest in real estate, affordability is the first thing an investor considers. With cities like Toronto and Vancouver on the expensive and luxury section, investors quickly swooped into Montreal when they discovered affordable rents and house prices.
First-Time Homebuyers’ Preference
Homebuyers looking to buy their first homes will find Montreal a more attractive option than Vancouver and Toronto. Since Montreal has maintained a consistent, low-cost rate, this allows first-time buyers to own a home without breaking the bank.
The benchmark for home prices in Montreal is around $300,000, despite the slight increase in house interests. The benchmark price is favorable compared to Vancouver and Toronto’s increasing average costs.
Influx of Relocation in the City
Of course, Canada has plenty of iconic architectural designs. The same with Montreal, the area has incredible architectural design, lifestyle, unique culture, tolerant bilingual people, and the city’s landscape caught the eye of immigrants, and these are some of the reasons people relocate to the city, alongside its affordable housing.
Standard of Living
Compared to Vancouver and Toronto, the standard of living in Montreal is moderate . This made it convenient for low-income earners to afford things they wouldn’t normally have afforded in Toronto. Hence, their reason for moving to Montreal.
Income and Employment
Montreal is home to aerospace and other exciting job opportunities. The quest to seek better job opportunities and expand businesses is one significant factor that drives the real estate industry in Montreal.
It’s not surprising to see Montreal compete with the big cities of Vancouver and Toronto, considering the city’s affordable housing and lower cost of living. Toronto and Vancouver have been driving the economy for long, but we might see another hot spot in Montreal. Our housing team expects the Montreal real estate vs. Toronto and Vancouver debate to continue for a long time.