Rising buyer interest and shrinking listings lead to double-digit price increases
Quebec City’s real estate market is defying trends seen in other parts of the province, as rising condominium and plex prices indicate a strong demand that has persisted since the pandemic.
Residential sales in the Quebec City Census Metropolitan Area (CMA) reached 667 in July, according to the Quebec Professional Association of Real Estate Brokers (QPAREB).
This marked a modest 3% increase from last year but enough to make it the second-highest sales figure for July since 2000.
Charles Brant, director of market analysis at QPAREB, noted the resilience of the Quebec City market, which has remained robust despite fluctuations in interest rates over the past 28 months.
“There is no recovery dynamic to the Quebec City market as is the case with many other markets in the province. It is, however, in a strong growth mode, and has been since the pandemic,” he said in QPAREB’s recent report. “Even if the increase in July sales seems relatively modest, make no mistake, the market posted its second-strongest activity in 25 years for this time of year.”
Brant added that the market's strength, combined with the start of a cycle of lower interest rates, is boosting buyer confidence, particularly among investors.
The high demand in the region has led to a significant decline in property inventory, with the number of active listings dropping by 11% year over year to 2,305 in July 2024. This low inventory level, particularly for single-family homes and condominiums, has contributed to a competitive market, with overbidding becoming more common, especially in the Agglomeration of Quebec City.
Property prices have responded to these market conditions with notable increases. The median price of condominiums in the Quebec City CMA rose sharply by 15% to $282,000.
Plexes, or small-income properties, saw an even more substantial increase of 21%, reaching a median price of $437,750. Single-family homes also experienced a price hike, with the median price climbing 7% to $375,000.
Read more: Quebec's hot housing market: Will it last?
“This transactional frenzy is reflected by a constant decline in the inventory of properties, which has had difficulty keeping pace as the number of new listings remains below their historical average,” Brant said.
“As with single-family homes, condominiums and small income properties are suffering from market conditions that are once again tightening in favour of sellers. This has contributed to overbidding, particularly in the Agglomeration of Quebec City, with prices jumping to new highs.”
The South Shore of Quebec City experienced the biggest sales gain, with a 42% rise in transactions, while the Northern Periphery of Quebec City saw a 41% increase. In contrast, the Agglomeration of Quebec City recorded a more modest 7% increase in sales compared to July 2023.
Transactional activity varied across property categories. While single-family home sales dipped by 5% to 399 transactions, condominium sales were strong, increasing by 15% to 210 transactions. Plex sales saw the most significant jump, with a 32% increase to 58 transactions.
As the market continues to tighten in favour of sellers, the average selling time has decreased across all property types. Small income properties sold in an average of 45 days, down from 65 days a year earlier, while condominiums and single-family homes had average selling times of 54 days and 44 days, respectively.
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