2023-08-05 01:12:51
The number of properties sold in Quebec increased in July despite the rise in interest rates which makes mortgage payments more expensive.
“What we see in July is counter-intuitive, notes Charles Brant, director of the market analysis department of the Professional Association of Quebec Real Estate Brokers (APCIQ), in an interview. Despite the rise in rates in July, we are seeing a fairly noticeable return to activity in Montreal, as in Quebec City. »
By raising the key rate in June and July following a pause, the Bank of Canada sent the message to buyers that interest rates might remain high for some time. “It made some buyers decide to come back to the market, not to wait any longer. »
The increased activity occurs “despite recent increases in interest rates,” agrees Darren King, economist at the National Bank. “However, it should be noted that the Montreal real estate market had experienced a less significant recovery than other major Canadian cities since the start of the year, which might partly explain this catch-up. »
There were 6,474 transactions accompanied by a broker on the Quebec residential real estate market in July, according to data from the APCIQ. This is an increase of 2% compared to the same period last year. The total for the first seven months of the year still remains in negative territory, down 18%.
Across Quebec, the median price of a single-family home remains relatively stable, with an increase of 1% compared to last year, at $421,000.
The situation varies from market to market, but Mr. Brant finds that the real estate market remains in favor of sellers who manage to obtain their price. “Existing quality properties sell very easily. »
Recovery in Montreal
On the Island of Montreal, the number of transactions jumped by 12%, with an increase for single-family homes, plexes and condominiums. The median price of a single-family home rose by 6%, reaching $750,000, while the price of plexes corrected by 5%, to $765,000.
Immigration is one of the factors supporting the Montreal market, adds Charles Brant. “Since 2022, we have had almost the same number of permanent residents in Quebec as what we had had during the three years preceding the pandemic. […] Apart from putting pressure on the housing market in general [y compris la location], these are people who can qualify to buy a property. »
The market is more moderate in the suburbs. The number of transactions fell by 13% on the North Shore. The drop is 2% on the South Shore. Vaudreuil-Soulanges and Laval recorded growth of 3% and 5%, respectively. Nevertheless, Saint-Jean-sur-Richelieu is an exception, with an increase of 23%.
A more active market in Quebec
In the Quebec City metropolitan area, the number of transactions increased by 19%, once more compared to last year.
Prices remain relatively stable for condominiums, single-family homes and plexes. For example, the median value of a single-family home in the region is $350,000, the same as last year.
This relative lull in prices seems to be attracting buyers from other regions, believes Charles Brant. “Thus, these advantageous price levels are helping to attract an ever-growing pool of potential buyers from outside the national capital. »
As in Montreal, he points out that Quebec attracts a large proportion of immigrants who settle in a region other than Montreal. “This trend has sharply increased in 2022 and is inevitably reflected in robust activity on the resale market, particularly in the most accessible sectors such as the South Shore in Quebec City. »
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