Quebec Market Report Summary
- The average selling price of a home in Quebec increased by 4.2% year-over-year to $483,700 in May 2024.
- The average selling price of a single-family home in Quebec increased by 3.9% year-over-year to $541,600 in May 2024.
- The average selling price of a townhouse/multiplex in Quebec increased by 1.9% year-over-year to $539,300 in May 2024.
- The average selling price of a condo in Quebec increased by 4.9% year-over-year to $383,800 in May 2024.
- The average rent in Quebec increased by 7.0% year-over-year to $1,999 for May 2024.
Composite Home Prices
The average selling price of a home in Quebec was $483,700 for the month of May 2024, that’s increased by 0.4% compared to the previous month. On a year-over-year basis, Quebec home prices have increased 4.2% over the last 12 months.
Single-family Home Prices
The average selling price of a single-family home in Quebec was $541,600 for the month of May 2024, that’s increased by 0.3% compared to the previous month. On a year-over-year basis, single-family home prices in Quebec have increased by 3.9% over the last 12 months.
Townhouse and Multiplex Prices
The average selling price of a townhouse in Quebec was $539,300 for the month of May 2024, that’s decreased by 1.2% compared to the previous month. On a year-over-year basis, the price of a townhouse in Quebec has increased by 1.9% over the last 12 months.
Condo Prices
The average selling price of a condo in Quebec was $383,800 for the month of May 2024, that’s increased by 0.8% compared to the previous month. On a year-over-year basis, the price of a condo in Quebec has increased 4.9% over the last 12 months.
Quebec Housing Market Summary
Data from the Quebec Professional Association of Real Estate Brokers (QPAREB) indicates that the average price of resale residential homes sold across Quebec in May 2024 was $483,700, and it increased of 4.2% compared to a year ago.
QPAREB also reported a sales-to-new-listings ratio (SNLR) of 65%, indicating a sellers market in Quebec for May 2024.
In May 2024, the Quebec Professional Association of Real Estate Brokers (QPAREB) reported a 2% rise in residential sales in the Quebec City CMA, the third highest since 2000. The city’s suburban markets saw intense activity in single-family homes and plexes in the Agglomeration of Quebec City. Median prices for these properties reached record highs. Transactional activity varied between 13% and 34% across different property categories. The South Shore of Quebec saw a 42% increase compared to April 2023, followed by the Northern Periphery. The Agglomeration of Quebec City had a 7% increase in sales. Median prices have risen compared to last year, with single-family homes and condos up 3% and small-income properties up 6%.
According to Desjardins’ housing report for May 2024, Québec’s provincial property sales are improving and reaching levels close to the 10-year average. It took around 5 months to sell a property during spring, shorter than the 10-year average of 8 months. Home prices in Quebec are exceptionally high, averaging around $510,000 for 3 consecutive months. Sellers have an advantage in most areas and property types, selling quickly without making many concessions. However, buyers are better positioned for plexes in Montreal and condos in Mont Tremblant and St-Adèle, as these properties are more abundant. While the resale market in Quebec is generally favourable for sellers, there are exceptions for specific locations and property types.
Residential construction in Quebec is not consistently increasing, with Montreal and Gatineau CMAs experiencing a decline in housing starts in 2024Q1. Factors contributing to this decrease include longer wait times for building permits in Montreal and builders moving to Ottawa from Gatineau. In contrast, Ontario offers more flexibility for the construction industry and exempts new purpose-built rental housing from provincial tax, making projects more appealing. Financial incentives in Ontario also encourage cities to issue building permits more quickly.
Saguenay CMA saw a surge in construction starts in 2023 and 2024Q1, with prefabricated homes gaining popularity. Val-d’Or added 99 new units in 2024Q1, as municipalities and developers collaborated to expedite construction due to low vacancy rates. Lower interest rates are expected to further encourage residential construction across the province, with a projected 20% increase in total housing starts this year and 10% the following year, primarily driven by purpose-built rental construction. This support is crucial in addressing the housing crisis and moving beyond the cyclical lows seen in 2023.
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Month-over-Month Expectations for Quebec’s Housing Market
Transactions – Number of Sales
The number of sales in Quebec was 9,104 during May 2024, that’s decreased by 2.6% compared to the previous month. On a year-over-year basis, sales in Quebec have increased by 4.5% over the last 12 months.
New Listings
The number of new listings in Quebec was 13,945 during May 2024, that’s increased by 3.2% compared to the previous month. On a year-over-year basis, new listings in Quebec have increased by 13.9% over the last 12 months.
Real Estate Market
The sales to new listings ratio (SNLR) in Quebec was 65% during May 2024, indicating a sellers market. On a monthly basis, that’s decreased by 2.6% compared to the previous month. Quebec’s yearly sales to new listings ratio has decreased by 4.5% over the last 12 months.
The sales to new listings ratio (SNLR) measures the number of home sales compared to new listings. An SNLR under 40% suggests a buyer’s market in which buyers have the upper hand and more negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 60% is considered a seller’s market.
Annual Changes to Quebec’s Regional Composite Home Prices
Annual Changes to Quebec’s Composite Home Prices
Quebec Market Rents Summary
The average rent in Quebec was $1,999 for the month of May 2024, which increased by 7.0% on a year-over-year basis.
The average rent for a bachelor apartment in Quebec was $1,474 for the month of May 2024, which increased by 7.0% on a year-over-year basis.
The average rent for a 1-bedroom apartment in Quebec was $1,712 for the month of May 2024, which increased by 6.0% on a year-over-year basis.
The average rent for a 2-bedroom apartment in Quebec was $2,208 for the month of May 2024, which increased by 8.0% on a year-over-year basis.
The average rent for a 3-bedroom apartment in Quebec was $1,712 for the month of May 2024, which increased by 8.0% on a year-over-year basis.
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How Does Renting Compare with Homeownership in Quebec?
Each $100,000 in mortgage balance costs an average of $555.70 per month on nesto’s lowest fixed 5-year rate at and $623.08 per month on nesto’s lowest adjustable 5-year rate at . For each $100,000 in mortgage balance, a 0.25% change in Canada’s policy rate impacts the monthly payment by $15. Rates used for calculation are those offered on insured purchases with less than a 20% downpayment on a 25-year amortization. Canada’s policy rate is , and nesto’s prime rate is set to .
Rental Price Changes by City
Rental Price Changes by Province
Rental Price Growth by Housing Type
Frequently Asked Questions
Is the Quebec housing market going to crash in 2024?
Quebec home prices are currently sagging due to surging mortgage rates. Quebec prices remain below average compared to the rest of the country, and with the current Bank of Canada rate hikes, mortgages have been harder to qualify for due to the stress test. Quebec prices will recover quicker than in other areas once mortgage rates decline back to manageable levels for homebuyers to purchase or homeowners to refinance their homes.
Will Quebec’s housing prices increase in 2024?
Although currently declining, many experts believe that a turnaround is imminent. Buyers are waiting on the sidelines for the opportune time to make a move. The market has already started to get closer to becoming a seller’s market.
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At nesto, our commission-free mortgage experts, certified in multiple provinces, provide exceptional advice and service that exceeds industry standards. Our mortgage experts are non-commissioned salaried employees who provide impartial guidance on mortgage options tailored to your needs and are evaluated based on client satisfaction and advice quality. nesto aims to transform the mortgage industry by providing honest advice and competitive rates using a 100% fully digital, transparent, seamless process.
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EXPLANATIONS
Interest Rates
Qualified using nesto’s fixed 5-year insured and uninsured rates as advertised on our website. For today, Thursday, June 27, 2024, our example calculations are qualified on our lowest rates, which may or may not apply to your unique financing situation or long-term goals. Insured fixed-rate mortgages will be qualified at , which is exactly 2% in addition to our fixed insured rate currently at . Uninsured fixed-rate mortgages will be qualified at , which is exactly 2% in addition to our fixed uninsured rate currently at . Insured variable rate mortgages will be qualified at , which is exactly 2% in addition to our variable insured rate currently at . Uninsured variable rate mortgages will be qualified at , which is exactly 2% in addition to our variable uninsured rate currently at .
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Property Values
Home values collected from CREA or QPAREB are those presented as the composite benchmark or average prices for each city/province/region unless specified. They may be interchangeably called average home prices, though an average price may not be available for many regions outside Quebec.
MLS® Home Price Index (HPI)
The MLS® Home Price Index (HPI) is a real estate price index compiled by the Canadian Real Estate Association (CREA) that tracks the price of homes in your neighbourhood. It’s a quick way for Canadians to compare home prices in different parts of Canada and between different periods without having to factor in the unique characteristics of a particular property.
While market prices can vary from one month to the next based on seasonal factors, the Home Price Index (HPI) provides a more consistent view and tracks price trends over an extended period. The Home Price Index (HPI) is updated annually in May to reflect changes in real estate markets.
MLS® HPI is the most comprehensive and precise way to track a neighbourhood’s home price level and trends. MLS HPI uses over 15 years of data from the MLS® System and advanced statistical models to create a “typical” home based on the characteristics of homes purchased and sold. This benchmark home is tracked across all Canadian neighbourhoods and various types of homes.
Property Types
Detached homes, also known as single-family homes, are residential properties that stand alone and are not connected to other buildings. They are legal single residential units on their own parcel of land and have a separate title.
Semi-detached homes are characterized by their unique architectural design. Two houses are built side by side and share a common wall. Although sharing a building, semi-detached homes have their own parcel of land and separate legal titles.
Townhouses are residential dwellings typically characterized by narrow, tall structures, often sharing walls with neighbouring units. Although they may share yards or common elements with their neighbours, townhouses will have separate legal titles from any adjoining building. Townhouses can be purchased as freehold or leasehold within a condo or strata and may come with their own land parcel. Townhouses can be part of a low-rise or high-rise building.
Condo apartments, also known as condominiums, are residential properties that combine elements of apartments and individual homes. It is a unit within a larger building or complex owned by an individual who also shares ownership of common areas and amenities with other residents. Condo apartment owners have legal ownership of their units and can modify them within the guidelines set by the condominium association. Unlike a townhouse, condos do not offer exclusive use of outdoor space unless they come with a balcony or terrace. Condos can be part of a low-rise or high-rise building.
Plexes or multiplexes are unique residential buildings constructed into 2 to 6 units within a single structure. Traditionally, they have been designed as low-rise residential buildings where any unit is accessible via an external entrance with higher floors connected by staircases. Each unit will have a separate registration and title but may share common elements and co-ownership fees with the other multiplex owners. Plexes are common in Québec and older parts of Toronto.
Property Ownership Classes
A freehold is a type of property ownership where an individual or entity has complete and indefinite ownership rights over a property and its parcel of land. Common freehold property types include detached houses, semi-detached houses, farms, and townhouses, which are not part of condominium corporations.
A condominium or condo is a distinct type of property class that combines apartment living and individual homeownership elements. In a condominium, individual units are owned by the residents, while the common areas and amenities are shared among all the unit owners. This type of ownership gives you rights to your specific unit and some rights and responsibilities to the common areas, such as the hallways, elevators, garage, pool and rooftop patios.
A leasehold is a legal arrangement where a person or entity holds the right to use and occupy a property for a specific period, typically through a lease agreement. In some cases, the leaseholder may own the building or unit and rent the land from the landowner (landlord).
Strata insurance
Strata insurance is insurance that a strata or condominium uses to cover damages to common areas, assets and liabilities to the strata. It can also include fixtures built or installed as part of the original construction of each unit, even though these may not be common structures. Strata insurance can cover the following:
- Buildings and structures on the strata’s property, including common areas such as the garage, roof, lobby, pool, etc.,
- Liabilities for any property damage or bodily harm due to an injury suffered on a strata property,
- Which also includes fixtures in the standard unit or part of the original make of each unit.
Strata insurance generally does not cover personal belongings and appliances in a condo unit. Damage caused by individual unit owners (e.g., water damage due to a unit owner’s negligence) is typically covered under personal condo insurance.