First-time buyers have sometimes had no choice but to postpone the purchase of a property, thereby “halting the transactional chain” of residential real estate sales in Quebec in 2023, according to the Professional Association of Quebec Real Estate Agents (APCIQ).
A total of 75,853 residential properties were sold in 2023, a decrease of 13% compared to 2022.
“The process of normalization of the Quebec market proceeded properly in 2023, despite a context marked by the brutality of the rise in interest rates since 2022,” emphasized Charles Brant, director of the analysis department of the APCIQ market.
According to APCIQ, the initial buyers were due to the climate of economic uncertainty and interest rate hikes that would continue to make them cautious in the fourth quarter.
“Reducing the pool of first-time buyers who can qualify helps stop the chain of transactions. For a market to be flexible, there must be a sufficient number of first-time buyers,” the director said.
The same behavior can also be observed among sellers who prefer to wait a while before putting their property on the market.
“At the end of the year we are seeing low transaction levels and relatively few properties for sale. The result is a stagnation in the market, which is still in a favorable zone for sellers,” noted Mr. Brant.
Prices remain under pressure
Against this backdrop, property prices have either increased or stagnated last year compared to 2022.
The average price for single-family homes reached $416,500, remaining at the previous year's level. The price of condominiums fell 1% to $360,000, while the price of investment properties rose 4%, with an average price of $520,000.
Transaction activity by the different markets in Quebec in 2023
- Census Gatineau Metropolitan Area: -15%
- Census Metropolitan Montreal Region: -14%
- Census Sherbrooke Metropolitan Area: -14%
- Drummondville Metropolitan Area Census: -10%
- Census metropolitan area of Quebec: -7%
- Census metropolitan area Trois-Rivières: -7%
- Saguenay Metropolitan Area Census: -7%