The record-breaking sales achieved in the Quebec housing market in 2017 is set to be surpassed by this year’s strong activity.
The Quebec Federation of Real Estate Boards says that there will be more than 86,000 transactions through the province’s Centris system, smashing the previous year’s high.
Trois-Rivières will be the exception to the gains posted by all CMAs across the province.
"With a 5% increase in sales, Quebec is performing well in the residential real estate market compared to other provinces," explained Paul Cardinal, QFREB market analysis manager. "Western Canada is experiencing a significant decline in activity, particularly in British Columbia, with a 23% drop to date in 2018. Ontario sales are down too, with an 18% decrease. As for property prices, Quebec is turning in the best performance with a 5% increase, all categories combined."
QFREB says it’s a seller's market in the Montreal and Gatineau CMAs, while buyers have more bargaining power in the Quebec City, Sherbrooke, and Saguenay CMAs. Trois-Rivières is still the most affordable area for the purchase of a property and its market is in balance.
Montreal heat continues
Leading the province’s home sales, Montreal’s record sales in 2018 is coupled with homes selling faster and prices rising. Plexes are showing the best price growth but condos are the hottest category.
"Abundant condominium construction in recent years has not lowered prices as some observers feared," said Mr. Cardinal. "Demand has held strong in the resale market, as reflected by the 15% increase in sales in this segment to date in 2018."
There is also strong growth in the suburbs, with year-to-date sales particularly strong in the South Shore (up 12% year-over-year) and the Laval region (7%).
Looking ahead to 2019
Next year is set to benefit from the strong labour market and consumer confidence.
Despite further increases in mortgage rates, QFREB forecasts a 1% rise in transactions in 2019 to 87,650. Its also predicting a 3% gain in the median price of a single-family home to $257,000.
Greater Montreal will lead the province’s housing market in 2019 with the Montreal CMA forecast to post 47,600 transactions, a new high.
Prices for the CMA are also expected to outperform the rest of the province with a 4% gain for the single-family median to $332,000; and a 3% increase for condos to a median $263,000.
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