Don't blame election for flat real estate market

Photo courtesy La Presse

The Montreal real estate market is softening, according to the latest numbers.

The new Teranet-National Bank Index, considered by the industry as the most trustworthy measure of the market, showed a 1.8 per cent drop in Montreal real estate prices between February and March of this year.

While some have blamed political uncertainty on the sluggish market, Montreal realtors aren't blaming the slowdown in activity on the election.

"We don't have any evidence of an impact of an election, either the one we just had or the one in 2012. We can't conclude anything," said Paul Cardinal of the Quebec federation of real estate boards.

Rather, he says it's the result of several factors, including the weather, the existing surplus of condos and new federal regulations.

"The turning point really seems to be the tightening of mortgage rules in July 2012, when the maximum amortization rates dropped to 25 years" from 30, he said.

He points to flat markets in much of eastern Canada as evidence that the election didn't overly influence Montreal's drop in home prices.

Instead, he believes that the market is going through a much needed correction.

He anticipates prices and interest rates to rise slightly next year.

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  1. Mike d posted on 04/15/2014 04:50 PM
    Ya ok. How many offers we're conditional on a liberal win?
  2. Lyne posted on 04/16/2014 09:33 AM
    My home was up for sale since January 2014. I had only 3 visits, one a month. After the election I had someone who wanted to see my home on April 10th and my home is now sold. I also learned from my realtor that the properties their company have listed are starting to move.
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