Despite signs of slowing down, housing market prices will finally have continued to rise significantly in 2022, forcing buyers to pay ever more in hopes of becoming a Quebec homeowner.
• Also read: Housing market: New sales decline in Montreal
• Also read: Two home sales broke records in 2022
Photo provided by APCIQ
Karl Brandt
APCIQ Analyst
According to the latest data from the Association professionnelle des courtiers immobiliers du Québec (APCIQ), the median single-family home price has risen 14% in 12 months to over $415,000. Condominium sales rose 12% to reach $366,000.
“The price declines caused by the successive rate hikes in 2022 were not felt with the same intensity everywhere,” admits Charles Brant, director of market analysis services at APCIQ. The Montreal region was hit first. But others will surely follow; We expect a completely different result for 2023.”
The north coast stands out
In Quebec, prices have seen the most significant price increases in the Basses-Laurentides, the vast North Shore of Montreal and Laval. In fact, the median price of a single family home has increased by 16% in 2022. In a single year it has gone from $422,500 to $490,000.
And the good value condos in the same area have experienced is even more impressive. On the north coast we’re talking about a 22% increase! The median condo price rose from $275,000 to $335,000, an increase of $60,000.
This data is the result of a year that will have developed in two periods and was marked by the continuation of the real estate overheating of recent years. From April the markets cooled down and prices leveled out again. At the end of December, Desjardins estimated the decline in property prices in the province at 6.4%.
But things are calming down in Montreal
The island of Montreal, hitherto heavily overbidden, is the market with the weakest price growth in 2022. The median price for a single family home there was $723,000 (up only 2% from 2021) and for the condo, from $445,000, an increase of 6 %.
The Québec region recorded more stable price fluctuations, despite a trend that also tended to worsen. House and condo prices have both increased by 10% in the past year.
For now, the market throughout Quebec remains in favor of sellers. This is despite an increase in inventories and a significant drop in transactions.
In December, home mortgage applications were down 45% compared to 2021, according to Terram. An imminent increase in the key interest rate could reinforce this trend. If the latter continues, the APCIQ expects prices to fall by an average of 5% in 2023.
* median price
**Latest data for Gatineau, Sherbrooke, Trois-Rivières and Saguenay regions excludes data for the fourth quarter of 2022. They are the median price over the last 12 months recorded on September 30, 2022.
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