Where are the Most Affordable Condos in Montreal?

Where to find affordable condos in Montreal

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Finding the right condo in a suitable part of town and at a reasonable cost can be quite a challenge, especially these years in Montreal.

The median price for a condominium on the Island of Montreal has gone up 29% over the past five years, and the overall market conditions currently seem to favor sellers rather than buyers, according to the Quebec Federation of Real Estate Boards (QFREB). But taking a closer look at the data reveals uneven trends across the metropolitan area: good opportunities are still at hand!

The West Island

The value of West Island condos has been growing at a steady pace similar to that of the whole Island over the last few years. At the same time, prices have remained lower in the West Island than anywhere else on the Island of Montreal, except for the Eastern Tip of the Island. In effect, the median price of a condo in the West Island was $219,295 at the end of the second quarter of 2012, according to the QFREB’s most recent MLS barometer.

Because the absorption rate for West Island condos is still just a little under eight months (which means that the whole inventory sells out in less than eight months because the demand is strong), units are still likely to appreciate at a pace somewhat higher than that of inflation. This fact usually favors sellers rather than buyers, but buying now in the West Island could still be a good decision.

In effect, condominium prices do not only remain lower than almost anywhere else in Montreal; they also continue to grow. Purchasing a condo in the West Island in the months to come could thus allow buyers to get a relatively low mortgage while seeing their new property appreciate faster than inflation. This upward trend, however, remains modest, and one has to be realistic with his or her expectations.

The South-West of the Island

If you are a downtown animation lover and find that the West Island is too far-off, the South-West of Montreal could represent a good compromise. Verdun and Lasalle, with the effortless access they offer to Montreal’s underground public transit system, are two areas that offer an almost instantaneous connection with the city’s entertainment.

Standing at $251,042 at the end of this year’s second quarter, the median price of a condo in Montreal’s South-West compares favorably to most areas on the island. Moreover, the growth in condo prices has been 3% higher than that of the whole island over the last five years. In other words, condos in this part of town remain financially accessible while corresponding to a sensible investment that can generate remarkable appreciation.

Other Areas to Consider

If the only criterion you wish to consider in your quest for a condo is its cost, Mercier/Hochelaga-Maisonneuve, Anjou/St-Leonard, and the Eastern Tip of the Island (Montreal North, Montreal East, Pointe-aux-Trembles) are three great areas to think about. Their respective median prices of $224,950, $230,750, and $178,000 are fairly strong incentives to settle down there.

These areas’ condominium markets already appear to be balanced, though. In other words, getting a mortgage for a condo in Mercier/Hochelaga-Maisonneuve, Anjou/St-Leonard, or the Eastern Tip of the Island is not likely to yield substantial short-term gains regarding the value of your property. These parts of town nonetheless remain judicious options for those wishing to own a condo somewhere on the Island of Montreal.

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