The Quebec Federation of Real Estate boards (QFREB) just released its 2018 results as well its 2019 residential real estate market forecast at its annual Fenêtre Sur Le Marché conference.
Already, Quebec’s residential real estate broke sales records in 2017 and it’s now well positioned to do so again in 2018. Quebec’s accelerating housing market comes in the heels of a rapidly cooling market in Canada’s two largest real estate markets: the Greater Toronto Area and the Greater Vancouver Area.
“With a 5% increase in sales, Quebec is performing well in the residential real estate market compared to other provinces,” said Paul Cardinal, QFREB’s market analysis manager. “Western Canada is experiencing a significant decline in activity, particularly in British Columbia, with a 23% drop to date in 2018. Ontario sales are down too, with an 18% decreases. As for property prices, Quebec is turning in the best performance with a 5% increase, all categories combined.”
“With a 5% increase in sales, Quebec is performing well in the residential real estate market compared to other provinces.”
Regarding market conditions, Montreal continues to outperform the rest of the province. The amount of time real estate sits on the market has dropped quite dramatically in 2018. Prices are also increasing steadily and above listing price offers and bidding wars are becoming more and more common. In terms of total sales, condominiums sales are especially surpassing expectations.
“Abundant condominium construction in recent years has not lowered prices as some observers feared,” mentioned Cardinal adding that demand has held strong in the resale market. To date, there has been a 15% increase in sales in this category.
Regarding their 2019 market predictions, a strong labour market in the province could very well lead to an increase in incomes and therefore higher consumer confidence. The QFREB expects 2019 to continue 2018’s momentum for the first semester, with a slight increase of 1% in the total number of transactions. The median price for a single-family home is also expected to increase by around 3%, from $250,000 to $257,000.
But because of ever increasing interest rates and higher borrowing costs, it’s expected that Quebec’s activity will follow suit with the rest of the country and experience a slow down on the second half of 2019.