Successive increases in the key interest rate continue to significantly slow down real estate activity in the province. But not yet to the point where the sector would force a general fall in prices, quite the opposite.
In fact, the average price of properties sold generally continued to rise in the third quarter of 2023, according to the latest data from the Professional Association of Real Estate Agents of Quebec (APCIQ), released yesterday morning.
The prices are holding up
At $420,000, the average price of a single-family home has increased by an average of 5% compared to the same period (July to the end of September) in 2022. The same upward trend was seen in condominiums; Their average price reached $365,000, an increase of 2% compared to the third quarter of last year.
“The market surprises with its robustness,” admits Stéphanie Lapierre, senior economist at APCIQ, in an interview. “But although he maintains his momentum, we sense that he is adapting. Compared to the years of euphoria we have experienced during the pandemic, he is behaving more and more normally. »
Sharply increasing deadlines
Although prices tend to stabilize and the number of properties offered for sale is slowly growing, there is a significant increase in sales times.
Across Quebec it rose by about 36% (or two weeks) and on the island of Montreal by up to 67% (or three weeks), so on average it takes about two months for a home to find a buyer.
For APCIQ, this extension of sales times represents a sign of relaxation in the Quebec single-family housing market.
Second homes on the decline
However, if the market as a whole continues to behave in favor of sellers, we see in certain holiday markets – which are rich in second homes – that conditions tend to rebalance or even favor buyers.
This is the case at Shawinigan, among others, where the number of transactions fell 28% for three months last year. The same phenomenon was observed in the Saint-Sauveur and Mont-Tremblant markets in the Laurentians, where the number of transactions fell by 21% and 17% respectively.
In contrast, Greater Quebec continues to experience good growth in the real estate market. The number of apartment sales there increased by 10% compared to the third quarter of 2022. Prices are also holding up as best as possible in the single-family and condominium market.
Currently, only the Plex market seems to be slowing down in the capital. The average price is now $380,000, down 2% from a year ago.
Source: APCIQ
*Third quarter 2023 compared to third quarter 2022.
**Q3 2023 corresponds to market data for July, August and September 2023.
Can you share information about this story?
Write to us or call us directly at 1 800-63SCOOP.