Real estate market: pronounced slowdown in Montreal; still robust in Quebec

Real estate market: pronounced slowdown in Montreal; still robust in Qué bec

SET À DAY

The trend that has begun to emerge in the province's real estate market in recent months continued for the month of July, with a decline that was confirmed in Montreal and a market still robust in Quebec City.

In the census metropolitan area (CMA) of Montreal, 3,080 residential transactions were recorded in July, a decrease of 18% compared to the same month of last year. year 2021.

“In continuity with what was recorded in June, the change in market dynamics is clearly confirmed. The magnitude of the interest rate hike, in just four months, has accelerated the market downturn, albeit much more gradually than in other major Canadian cities,” noted Charles Brant, market analysis of the Professional Association of Real Estate Brokers of Quebec (APCIQ).

“The direct consequence is the fall in the proportion of sales concluded following a process of overbidding and the beginning of a decline in prices, with the exception of plexes, if we analyze their evolution over the two months,” he added.

While the North Shore sector of the metropolis experienced a 3% increase in residential sales, that of the South Shore however fell by 12%.

Much more significant slowdowns were also recorded in Vaudreuil-Soulanges (-20%), the island of Montreal and Laval (-29%) and Saint-Jean-sur-Richelieu ( -20%.

Plexes and condominiums were less popular with buyers with respective declines of 38% and 20% compared to July 2021. Single-family homes, for their part, posted a decline with less magnitude (-12%).

And while the median price of single-family homes posted a 10% increase compared to last year, reaching $550,000, it was still down $30,000 from the April 2022 peak.

A first price drop for the year was also observed in the median price of condominiums at $391,500. The median price of plexes has been stable for several months at $776,000.

Sales still on the rise in Quebec

“The Quebec metropolitan area market is one of the few markets in the province and the country to record an increase in sales compared to last year at the same time. However, this activity was partly explained by the absorption of an increasing inventory of single-family properties in the market for this time of year, and compared to June for the first time since 2017, in both scenario”, observed Mr. Brant.

“Even if this rise will have to be confirmed in August and September to speak of a trend, it is a precursor to a slowdown in the market and a much weaker price growth or stabilization over the next few months,” he specified.

A total of 544 residential transactions were recorded in the Quebec City CMA, an increase by 1% compared to July 2021.

The Quebec City agglomeration and the northern periphery reported an increase of 4% and 12% respectively in their sales, compared to a decline of 16% noted for the South Shore.

Sales of small properties increased by 5% compared to the same month last year, when unifam subsidiaries grew by 7%. Condominiums fell 11%.

The median price of single-family homes has remained stable since the spring ($350,000), while the median price of condominiums was $235,000 (+11 %) and small properties at $383,000 (+16%).