House values stabilize with 6% increase in greater Montreal
Published Wednesday, September 14, 2016 10:02AM EDT
Last Updated Wednesday, September 14, 2016 7:28PM EDT
Montreal property values appear to be stabilizing after years of high assessments.
The average home in greater Montreal is worth 5.9 per cent more than it was three years ago, but that is the lowest increase in a decade.
According to the documents released on Wednesday, property values went up more in the central city than they did in the suburbs, with Westmount and the Plateau Mont Royal seeing the greatest rise in price.
The assessment for the property roll is based on housing prices as of July 1, 2015.
Those values will be used to set property taxes for the next three years, and can be challenged when homeowners get their individual assessments.
Homeowners in the city of Montreal can check the value of their property at the city's website, or by going to their local borough office
In 2012, in the middle of a nationwide rise in housing prices, property values on the island of Montreal jumped by 19.5 per cent, with the Plateau Mont Royal and TMR seeing hikes of greater than 25 per cent, while values in Montreal East and Senneville only rose 6 per cent.
But a rise in value does not mean property taxes will rise by the same amount.
The 2014 municipal budget for Montreal saw a 2.8 per cent average tax increase for homeowners, ranging from a low of 1.1 per cent to 5.3 per cent depending on borough.
According to the assessment roll the average price for a co-property (divided condominium) in the Montreal region is $342,200, which is a 3.5 per cent increase.
The price for a single-family house averages $510,100, 5.3 per cent more than the last assessment.
In Westmount, Outremont, Hampstead and the Town of Mount Royal the average price for a single family home is more than one million dollars.
Executive Committee President Pierre Desrochers called it good news for Montreal.
“That stabilization, it seems that there's no bubble, no real estate bubble which has truly an impact to access property,” he said.
On the real estate front, the generally lower assessments mirror what's happening on the resale market. A slowdown attributed to changes to the mortgage rules, said Paul Cardinal of the Quebec Federation of Real Estate Boards.
“Since mid-2012 there was a slowdown on the resale market in the Montreal area due basically to the new mortgage rules set by the federal government. At that time a maximum amortization period went from 30 to 25 years so there was a drop in the number of transactions in 2013 and 2014.
Sales picked up again in 2015 and 2016.
The new tax rates for Montreal and all the other island municipalities will be revealed when budgets are tabled this fall.