Decrease is most prevalent among younger homebuyers
Surging home prices have caused home buying intentions to fall in Quebec, according to the results of a recent survey.
The survey was conducted jointly by the Association des professionnels de la construction et de l'habitation du Québec (APCHQ), the Fonds immobilier de solidarité FTQ, the Ministère des Affaires municipales et de l'Habitation (MAMH), and the Quebec Professional Association of Real Estate Brokers (QPAREB). It polled over 5,500 people across Quebec on their home buying and selling intentions in the next five years.
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According to the survey, rising prices across the province have caused buying intentions to fall from 25% in 2020 to 23% this year, with the decrease most prevalent among 18- to 34-year-olds, where they have dropped from 52% to 47% in one year.
The survey also found that 63% of young households said rising prices negatively impacted their buying intentions.
In October, QPAREB figures showed that median prices in the province increased by 18% for single-family homes (up to $365,000), 18% for condos (reaching $334,000), and 5% for plexes (to $450,000) in the third quarter of 2021.
“With a price increase that puts home ownership well beyond the purchasing power of households in many markets, particularly the Montreal [census metropolitan area], it's normal for younger households to remain renters for longer, increasing the pressure on the rental market and prompting moves to outlying agglomerations that offer housing alternatives,” said Charles Brant, director of market analysis at QPAREB. “As for second homes, they are reserved for the most experienced and affluent buyers and investors who are shopping in a hypercompetitive market that has spawned bidding wars. Still, opportunities could arise sooner rather than later in this segment.”
