Buyers who have been waiting for a drop in home sales prices to get their hands on their dream property will have to be patient, as 2023 prices should be maintained next year.
At least that is what the Quebec Association of Real Estate Agents (APCIQ) predicts in its 2024 outlook for the residential real estate market.
Supported by the fall in interest rates, prices, especially for single-family homes, are likely to remain at the current level, according to the forecasts presented on Thursday.
In the Montreal census metropolitan area (CMA), average prices are expected to barely fluctuate, with possible increases of 2% and 1% for single-family homes and condominiums, respectively.
Prices are likely to continue rising in the CMA Quebec City. While condo prices could see a more modest increase of 1%, the cost of single-family homes would increase by 5%.
More predictability
In general, the property market is expected to stabilize over the next year, allowing the market to resume in somewhat more balanced conditions, following declines in activity since peaks in 2020 and 2021.
“Although we expect a level of activity comparable to that of 2023, 2024 will offer more predictability regarding the evolution of interest rates and may provide a series of good news in this regard,” expected Charles Brant, director of the APCIQ market analysis department.
In 2024, a slight decline in sales of 2% was recorded compared to 2023.
“An increase in new registrations is expected, meaning the market will benefit from more balanced conditions. This period will provide buyers with more numerous and negotiable purchasing opportunities to take advantage of,” Mr Brant said.
“This situation will be short-lived as transaction activity is expected to react very strongly to the first rate cut announcements, which should lead to a more significant market recovery later in the year,” he said.