Montreal home sales are dropping, but prices aren't. Experts weigh in

Due to higher interest rates, Montreal home sales are down by nearly 40 per cent since last year -- but the same can't be said for home prices, which appear to be holding strong.

Economist Stephanie LaPierre says raised interest rates have buyers and sellers in wait-and-see mode.

"People are trying to see what is the best move to do for me: 'Do I sell, do I buy house right now, or not?' So what we see is a slow-down in the market," said LaPierre, an economist with Quebec's association of real estate brokers (APCIQ).

While sales numbers are down, prices don't appear to be falling along with them.

"People are sticking to their guns and sticking to their prices," said Terry Kilakos, founder of the North East Real Estate & Mortgage Agency. "Houses tend to stay longer on the market, so where before, when you list your house, it would be sold in a weekend."

But Kilakos says patient sellers will eventually find a buyer in this market, and LaPierre agrees.

"Property with good quality, good value, there [are] still buyers who want those properties," LaPierre said. "So that's why the price is not correcting that much. The price is still stable, with a little bit of variation."

She expects it will stay that way, noting interest rates have likely come close to their peak. And compared to other major Canadian cities, Montreal prices were lower to begin with, she added.

Her biggest piece of advice for buys? Be strict with your budget.

"What I would say to those buyers, to those people who want to go on the market: do it with the right finances. You have to find a house that is going to fit your budget," she said.

Kilakos, meanwhile, expects 2023 to be a better year for buyers compared to pandemic years, when bidding wars often drove prices well above asking.

Those days appear to be over -- but he also doesn't expect prices to fall dramatically.

"In Quebec, we'll probably be looking more at a balanced market. In certain neighbourhoods, we'll probably end up seeing a buyers market start to occur, which is good."