The Quebec Professional Association of Real Estate Brokers (QPAREB) reports stable sales, near what they’ve historically been in the Montreal Census Metropolitan Area (CMA) — despite a weak start to the fall season. This has imbalanced the market towards sellers, with higher prices than seen in November last year.
QPAREB notes the Quebec City CMA saw sales decline last month compared to the same time in 2022. This is after four consecutive months of increases. The area’s active listings are gradually increasing but remain at historically low levels. The CMA is seeing upward prices, especially for condominiums.
Montreal CMA highlights
Source: QPAREB
There were 2,664 units sold in the Montreal CMA last month, a decline of 1 per cent (36 transactions) compared to the same time last year. This is the second-lowest transaction level for the time of year since the start of market data compilation in 2000.
Active listings across all property types went up by 11 per cent in November compared with a year ago, hitting 17,715. Available property inventory hasn’t been this high since summer 2019, which is still well below the historical average.
“Unlike other large Canadian metropolitan areas such as Toronto and Vancouver, the residential market in the Montreal region is not experiencing a rapid increase in the number of properties returning to the market … Due to much lower property prices, the debt level of Montreal households and the budget allocated to monthly mortgage payments are significantly lower than in the two other Canadian metropolises,” Charles Brant, QPAREB market analysis director points out.
“It should also be noted that the inability of some buyers to qualify for a mortgage is keeping sales at low levels, contributing to pressure on the rental market. In this context, the market for small income properties seems to be finding renewed appeal among investors, as rates stabilize, while offering other advantages to those wishing to become owner-occupants.”
All median prices were up compared with November of last year: condominiums were at $395,275, an increase of 4 per cent, single-family homes were at $539,700, an increase of 4 per cent and plexes were at $731,250, an increase of 2 per cent.
Quebec City CMA highlights
Source: QPAREB
The Quebec City CMA had 636 sales during November. Similar to the historical average, this is a 34 transaction, or 5 per cent, decrease compared with November 2022.
Active listings hit 3,174 last month, a 5 per cent increase from last year. By property type, single-family homes and plexes went up (by 8 and 5 per cent, respectively), but condominiums went down (by 3 per cent).
“Activity in the Quebec City market is showing signs of running out of steam. While single-family homes are still relatively affordable, their price has reached a threshold which makes it more difficult for households to qualify for a mortgage. In the Quebec City region, half of the single-family homes sold above $360,500 in November,” Charles Brant, QPAREB market analysis director notes.
“The dynamic is therefore favourable to the condominium market, which holds the top spot in terms of transactional activity in November. This property category is popular both with young homebuyers as well as with repeat buyers, usually around retirement age, in more upscale segments,” Brant adds.
As for median prices, single-family homes were at $360,500 in November, a 4 per cent boost from the same time last year. Condominiums increased by 16 per cent to $259,000, while plexes went down by 1 per cent to $389,000.
