Montreal Travel » Montreal Metro

Montreal is one of the most cosmopolitan and economically diverse cities in North America. The city presents investors a large array of business avenues, and the city's real estate sector remains a thriving one. Housing costs in this city are quite reasonable as compared to its American contemporaries, and housing analysts note that it's worth investing into.

Like in most metro areas, there are districts and sectors that are less expensive than others, and some neighborhoods have home prices that are way beyond the reach for average home buyers. Montreal is famous for its cosmopolitan restaurants, diverse industries, shopping and boutique hotels. The city's overall metropolitan area covers a region that is home to around 3.7 million residents.

Where The Expensive real estate Is

Based on current trends, there are more expensive homes in the center part of Montreal than the outskirts, places like Senneville, Beaconsfield and St-Laurent to name a few. There are, however, quite a few in the Westmount district. The second most expensive district on the market is a grand stone manor in Westmount on the Boulevard, which is priced at $5,800,000. You only get 10,000sq' of land though, however it is very beautiful, modern, renovated with gorgeous gardens.

Why Have Average Property Prices Here Risen?

The average price of a property in the Greater Montreal area has increased by 50%, and many view this as a sign of healthy growth in the property sector. The major factors that account for this phenomenon are:

- Rental Unit Vacancy Rate

The Greater Montréal area's rental vacancy rate in 2005 stands at 2%. The option left to consider is to buy a house, a apartment complex or a condominium. It is definitely advantageous to trade up from being a renter to a home owner thanks to low interest rates and incentive programs such as the Home Buyers Plan.

- Interest Rates

Interest rates on real estate properties these days are quite low, which means easier access to property. The positive news for borrowers is that in the short-term, there are no indications of a major and significant interest rate increase.

- Rising Consumer Confidence

The economy has grown by 14% since 2000. The higher the level of confidence, the more consumers invest and buy properties. This has a positive influence on the real estate market.

- Robust Job Growth

Since 2000, 353,000 jobs have been created, which isan indicator that the province of Quebec is in a period of prosperity. When you are employed, you have the means of buying a house.

Condo Prices In Montreal

At present, average prices for existing condominiums in the city continue to rise but at a slower and much guarded pace. The price of buying a condo in the Montreal metro area is expected to increase by to a median level of $190,000 in 2007 -- which indicates an increase of five per cent. The Canadian Housing Corporation has noted that demand for condos has started to slow since last summer, and analysts note an large inventory of more completed, but unoccupied units.

Housing experts see this as a worrying scenario, as the glut in the supply of condos is going to surely lead to a reduction in prices, as most developers will be forced to lower initial offerings for new units, if only to entice buyers to get them.

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Source: www.articlecity.com