The Quebec Professional Association of Real Estate Brokers (QPAREB) August market statistics show significant growth in both Quebec City and Montreal, thanks in part to recent interest rate cuts.
Quebec City: A strong market in expansion
Last month’s residential sales in Quebec City reached 626 transactions, marking a 10 per cent year-over-year increase — the second-highest transactional activity for this time of year.
Source: QPAREB
“The strength of the Quebec City market is impressive and is firmly positioned in an expansion phase. This situation is set to continue for some time as the downward movement in interest rates is well underway. All the more so since this strengthens the confidence of households and investors in a market where the sustained increase in property prices seems unwavering,” notes Charles Brant, QPAREB market analysis director.
However, Brant cautions that rising home prices, driven by limited inventory, could offset the benefits of falling interest rates, and affordability concerns are growing as the unemployment rate edges upward.
Montreal: Market recovery driven by rate cuts
Residential sales in Montreal totalled 2,991 in August, a 9.0 per cent increase from the same period last year. Brant attributes this growth to the Bank of Canada’s three consecutive rate cuts, which have given households more purchasing power despite the moderate rise in home prices.
Source: QPAREB
“The strength of the Montreal resale market contrasts with the decline posted by many other Canadian metropolises struggling with a much higher level of household debt, lower savings and diminishing purchasing power. All these factors limit transactional activity and contribute to more instability for mortgage renewals,” he adds.
“Montreal, unlike these markets, is benefiting and will benefit even more from the downward trend in interest rates. Buyers have more maneuvering room since household income tends to be similar to that of other major Canadian cities yet home prices remain almost half as high.”
Market highlights
Quebec City saw single-family home sales jump by 13 per cent, with a median price increase of 9.0 per cent, reaching $390,000. Condominium sales rose 7.0 per cent, with a 22 per cent median price increase to $279,500.
In Montreal, single-family homes saw a 9.0 per cent increase in sales, with the median price rising by 5.0 per cent to $590,000. Condominiums led the sales increase with an 11 per cent jump, reaching a median price of $407,100.
Active listings in Montreal grew by 18 per cent, while Quebec City saw a 13 per cent decline, reflecting low inventory in Quebec City and increasing supply in Montreal.
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