17% drop in residential sales in Quebec

Sales of residential properties in Quebec fell 17% in Quebec in the first quarter of 2022, compared to the same period in 2021, according to the Association professionnelle des courtiers immobiliers du Québec (APCIQ).

The APCIQ recorded 25,845 transactions across the province for the first three months of the year. Although this slowdown is “notable”, the number of sales remains higher than the historical average of the first quarters before the pandemic, which was closer to 20,000 transactions, noted the organization. According to data from the APCIQ, all metropolitan areas experienced a decline in sales in the first quarter of 2022. The slowdown was more significant in the CMAs in the south of the province, such as Sherbrooke (-22%), Montreal (-16%), and Gatineau (-15%). The declines were more moderate in Quebec (-13%), Trois-Rivières (-11%) and Saguenay (-6%).

“Buyers were once more very active in the market in the first quarter of 2022, anticipating rising interest rates and shopping ‘all the way’, with bank pre-approval and a reserved mortgage rate in their pocket,” commented Charles Brant, Director of the Market Analysis Service.

“This renewed demand has contributed to a further drop in active listings. The result is a generalized and trending decline in the level of transactions and renewed high pressure on prices,” he added.

The number of registrations stood at 21,563 across Quebec in the first quarter of 2022, a decrease of 21% compared to the same period in 2021. This is a new record in the provincial level and the twelfth consecutive quarter of decline in registrations, according to the APCIQ.

In the Montréal CMA, residential sales fell by 16%, while the number of listings fell (9,759, -13%). Plexes experienced a slight upturn (+1%) while single-family listings fell (-7%), as did condominiums (-22%). Residential sales also fell in the CMA of Québec (-13%) while listings fell by 33%.

Provincially, the median price for single-family homes was $415,444, up 22% compared to the first quarter of 2021. Condominiums were $365,000 (+20% ), while buildings with two to five units saw the largest increase in their median price compared to the first quarter of 2021, reaching $520,000 (+25%).

In the Montreal CMA, the median price of single-family homes increased by 20%, 18% for condominiums and 14% for plexes. The same goes for the Quebec City CMA, where single-family homes have seen their median price rise by 13%, condominiums by 12% and small income properties by 11%.