The Quebec City Census Metropolitan Area (CMA) has experienced a thriving real estate market in October 2023, marking it as the third-best performing October in 23 years. The robust regional economy and steady property price growth have resulted in a 14% increase in residential sales from last year, with a total of 729 transactions recorded. This information was shared by Charles Brant, the Market Analysis Director at the Quebec Professional Association of Real Estate Brokers (QPAREB).
The current situation is attributed to an intensifying scarcity of properties due to a persistent shortage of listings, which is at a 15-year low according to data from the Centris provincial database. This shortage is driving up prices, leading to increased residential sales in the region. High sales were noted specifically in the South Shore of Quebec City, Northern Periphery, and Agglomeration of Quebec City.
Despite the market's resilience, Brant warned about potential supply-demand imbalance due to ongoing price increases. He suggested that this could attract investors despite rising interest rates, sparking speculative behavior that could be detrimental to the housing market.
Transactional activity varied across property types. Small income properties saw a significant surge in sales by 42%. Active listings rose to 3,029, with condominiums and single-family homes seeing increases while plexes declined. Median prices and average selling times also showed variation across categories.
Contrarily, the Montreal CMA experienced a slowdown in its property market in October 2023. The residential sales declined by 2%, marking it as the second-lowest since 2000 due to economic uncertainty and rising borrowing costs. However, regional performance varied with Montreal Island and South Shore witnessing transaction increases of 7% and 8%, respectively, while North Shore, Laval, Vaudreuil-Soulanges, and Saint-Jean-sur-Richelieu experienced declines between 12% and 30%.
Despite the slowdown, the Montreal CMA market remains favorable to sellers due to price increases across all property types. The median prices for single-family homes, plexes, and condominiums in October 2023 were $545,000 (up 7%), $735,000 (up 5%), and $390,000 (up 3%) respectively. Active listings have also surged by 12%, matching the inventory levels of Summer 2019.
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