The property values in the Montreal area have just skyrocketed
Published Wednesday, September 11, 2019 10:31AM EDT Last Updated Thursday, September 12, 2019 2:17PM EDT
Property values are up dramatically in the Montreal area according to a new assessment roll released Wednesday.
Overall, values have spiked by an average of 13.7 per cent in the agglomeration, which includes Montreal and 15 neighbouring cities; they were up only 5.9 per cent in the previous roll released three years ago.
Condo values have risen by 8.7 per cent, up from 2.7 per cent in 2017. Single-family detached homes are up 20 per cent.
- Condo unit: $365,000
- Single-family home: $600,000
"The market has just completely exploded over the past few years since 2017," said residential real estate broker Rebecca Sohmer.
Property values are climbing fast, said Montreal's Executive Committee Chair Benoit Dorais.
"The most recent figures show that the real estate market is doing very well on the island of Montreal and market value of properties is rising sharply," he said.
To put it in perspective, in 2016, the average three-year increase was less than 6 per cent.
The highest borough increase is in Verdun, which sees property values rise 19.8 per cent. Sud-Ouest values are up 17.1 per cent, while those in the Plateau Mont-Royal are up 16.7 per cent. The boroughs of Outremont, Rosemont-La Petite-Patrie, Cote-des-Neiges-Notre-Dame-de-Grace, Ville-Marie, Lachine and Pierrefonds-Roxboro all have increases above 12.7 per cent, which is the average increase for boroughs in Montreal.
"I think Verdun and the Sud-Ouest has seen a lot of gentrification over the past few years, prospecting, a lot of flippers going in," said Sohmer.
In the suburbs, the highest increases are in Ile Dorval (up almost 30 per cent), and Beaconsfield, which is up just over 25 per cent. Hampstead, Mount Royal, Kirkland and Westmount also rose over 20 per cent.
"There are a lot of transactions on the West Island. The properties are more popular than previously," said Dorais.
Non-residential values have increased on average by just under 10 per cent.
Does this mean higher taxes?
Higher property values usually mean higher taxes – but the city's message is this: don't panic.
The Plante administration said Wednesday that it is committed to lowering the 'mill rate,' which is the amount of tax payable on a property's value.
The new property tax rates for 2020 will be announced as part of the city's budget, which is expected to be released in late fall.
On average, Montreal homeowners will feel a 2 per cent tax increase, though for some, it will be more.
Homeowners can check the value of their property on the city's property assessment roll or at their local borough office.
Want to get into the market?
If you're just thinking about getting in on the hot housing market, don't wait too long, said Sohmer.
"I think buyers who are waiting to get in should not be waiting. You have to get in now," she said.