For those wondering if homeownership in Montréal represents a good financial investment; the answer is a resounding, “Yes”!
Within a booming economy, 2018 represented an exceptional year in the real estate market and 2019 is only continuing this upward trend. With the stage set for the potential of significant increases surpassing last year in residential sales, it is no wonder homes in choice areas are continuing to sell swiftly.
So what will that mean for Montréal’s municipal property valuations?
Municipal tax rolls are updated every 3 years and the 2019 roll is on the horizon for this Fall. Some interesting valuation surprises are anticipated. Residential valuation increases are likely to be on average 15-20% potentially nearing as high as 30% in key areas since the last valuation roll (2016-2017-2018). That is almost three times the previous average increase of 5.8% according to JLR’s comprehensive statistics.
This is both exciting and daunting in the same breath. While on one hand increased home valuations are a good thing from an investment standpoint; most homeowners dread paying higher taxes in the short-term. Those of course, in areas with lower valuations, will understandably pay lower taxes, but when it comes time to sell their properties those properties will not have appreciated as significantly.
Data compiled by JLR Land Title Solutions is forecasting impressive increases in the tax roll valuations throughout Montréal. The most dramatic increases will be noticed in the West Island and the central-most areas of the city.
It is obvious we are in a sellers’ market, particularly in the West Island. This comes as no surprise to professional real estate brokers as we keep our clients abreast of the rapid changes in the market. However, even those who have been passively house-hunting by attending the occasional open house, sense the imbalance.
With the vitality of the economy, the increasing influx of foreign investment and the new first-time homebuyer incentive program, the buyers are out there in droves… but the sellers are few to be found as home inventories still remain low. Bidding wars in areas of high demand are no longer an uncommon phenomenon.
Rising demand and fewer homes mean higher sale prices and ultimately higher home valuations; most noticeably in key West Island communities like Beaconsfield and Kirkland along with more central and equally choice areas of Hampstead and Mont-Royal.
According to my recent conversation with Joanie Fontaine; Économiste principale – Senior Economist at JLR; “The market is very dynamic in the West Island which leads to higher home prices. And, with the addition of the REM (Réseau express métropolitain) it only adds to this increasing demand”.
The eastern sector of Montréal, however; is not in keeping with the pace as it is in want of development, investment, and additional public transportation. As a result, it is not seeing the same boon in the resale market and home valuations as is evidenced in other more central areas of the city.
Verdun remains particularly attractive to homebuyers; its values have literally skyrocketed while maintaining attractive price-points when compared with related properties found in and around Le Plateau-Mont-Royal. Le-Sud-Ouest remains another area boasting tremendous market growth with astounding appreciations nearing 30% or more.
The condo market is benefitting as well with growing valuations; again seen highest (roughly 15%) in the more coveted central areas of the city; Mont-Royal, Westmount and Griffintown and to a lesser extent Le Sud-Ouest, Verdun, Pointe-Claire, Dollard-des-Ormeaux, and Outremont.
While there is no better time to be a homeowner in Montréal, it appears to be an even better time to be a “Home Seller” where the opportunities in this sizzling market are ripe with statistical possibility, for obtaining the best price for your home.
So if you’re curious to know your home’s worth; please don’t be shy. Reach out by phone, email or text. It is my pleasure to listen to your needs and provide answers to your questions. It is a wonderful and exciting real estate market out there… and it is my privilege to share my specialization and expertise with you.
Detailed information regarding Montréal Property Valuations can be found using the following links provided by the municipality:
Engel & Völkers • West Island Real Estate Broker • Interior Designer
firstname.lastname@example.org • 514-795-2610 • candisnoble.evrealestate.com