November Sales: No Complaints

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by Andy Dodge, CRA

(NOTE: The following article relates to offers to purchase Westmount residential dwellings which were reported by the local real estate agents as having been accepted in November, 2006. Because they are not final registered sales, the addresses and prices cannot be made public, but give a good idea of current trends in local real estate activity. The graph offers a picture of these trends over time.)

Seven out of twelve Westmount home sales brought prices over $1 million in November, so even though markups are easing off it appears the buyers are still willing to put out considerable cash to become a part of the Westmount market. The average price of the 12 sales was $1,083,750 and the average markup was 45 percent against the old 2004 municipal valuations, down from 57 percent in October but still just about the same as the average for the entire year.

Prices ranged from a low of $690,000 (one of the highest monthly minimums in Westmount’s history) to $1,710,000, markups ranged from 15 percent to 75 percent -- though when compared to the 2007 valuations, several sale prices are less than the new assessment. The dozen sales so far reported for November brings the year’s total to 160, far more sales than at this time last year and only slightly lower than the 12-year average.

Agents, of course, still are looking at the collapse of the United States market and wondering when -- or if -- that will be reflected here. So far it appears that the strength of the local market is a reflection of confidence in the Canadian economy, and there is nothing holding it back at this point. There are still enough buyers to support the Westmount real estate market, at the very least.

Even adjacent-Westmount drew considerable interest in November, with four sales on the west side of the city, three to the north and three on The Boulevard just east of Westmount, plus various condominium and co-op sales in the various districts. Most of the house sales brought prices in the $700,000 to $800,000 range, though two of the Boulevard sales brought prices over $1 million.

Condo sales have been sluggish in the fourth quarter, with only two sales in October and none in November, despite a very healthy showing earlier in the year.

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