Demand pushes property prices to new highs, while inventory hits historic lows
Quebec City recorded its second-highest number of residential sales in 25 years for the month of August, according to recent data from the Quebec Professional Association of Real Estate Brokers (QPAREB).
The report revealed that 626 residential properties were sold in the Quebec City Census Metropolitan Area (CMA) last month – a 10% increase from August 2023. Only one August has exceeded that level of sales activity for the month since QPAREB’s Centris system began tracking data in 2000.
“The strength of the Quebec City market is impressive and is firmly positioned in an expansion phase,” said Charles Brant, QPAREB market analysis director. “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.”
However, Brant said the rapid rise in home prices, driven by an overheated market, could undermine the positive effects of lower interest rates.
“Market affordability is in sharp decline while, at the same time, the recent rise in the unemployment rate shows some cracks in the region’s economy,” he said in the report. “These are all elements that could put an end to the euphoria of the Quebec City market without necessarily returning it to balance or even shifting in favour of buyers.”
Regional sales
Sales in the Quebec City area varied by region, with some seeing particularly strong growth. The Northern Periphery of Quebec City led the way with a 39% jump in transactions compared to August 2023, while the South Shore recorded a 19% increase. Sales in the main Quebec City agglomeration grew by 4%.
Single-family homes remained the most sought-after property type, with 381 homes sold, up 13% from last year. Condo sales also rose by 7%, while small-income properties, often seen as attractive investment opportunities, increased by just 4%.
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The demand for housing continues to push prices higher. The median price of a single-family home in the Quebec City CMA reached $390,000 in August, up 9% year over year. Condos saw the sharpest increase, with a median price of $279,500 – a 22% rise from 2023. Meanwhile, small-income properties (plexes) posted an 18% increase, hitting a median of $456,000.
Inventory hits historic lows
One of the factors driving up prices is the significant decline in available listings. Active listings in August 2024 fell by 13%, leaving just 2,303 properties on the market in the Quebec City CMA. This is the third-lowest inventory level ever recorded for August, putting further pressure on potential buyers.
Despite strong demand, properties are spending more time on the market than they did last year. Condominiums took an average of 83 days to sell in August—18 days longer than in 2023. Single-family homes averaged 57 days on the market, up by 14 days, while small-income properties took 69 days to sell, a rise of eight days.
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