Quebec real-estate market experiences ‘robust’ third quarter

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Falling interest rates have resulted in robust third-quarter residential sales in Quebec, according to the Quebec Professional Association of Real Estate Brokers.

Sales jumped 13 per cent across the province as well as in the Montreal region compared with last year, representing a total of 20,620 sales.

“This level of transactional activity is significantly higher than the average recorded for this time of year since Centris began compiling market data in 2000,” the association said in a report based on Centris residential real-estate statistics.

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The strongest growth across the province was among condos, at 16 per cent, representing a total of 5,184 transactions. Single-family homes followed at 13 per cent, with 13,481 transactions. Plexes were last, with a nine-per-cent increase representing 1,894 sales.

“The Quebec resale real-estate market was robust in the third quarter, with transactional activity returning to levels well above the historical average for this time of year in most metropolitan areas and agglomerations,” Charles Brant, QPAREB market analysis director, said in a statement. “With the key interest rate dropping 75 basis points since the beginning of the summer, there was a sharp rise in the consumer confidence index in regard to major purchases, such as a property. It is also worth noting that the decline in fixed mortgage rates, which have already reached attractive levels, has occurred more quickly than that of variable rates.” 

As far as metropolitan areas are concerned, the highest sales growth was in Sherbrooke, at 26 per cent, following by Saguenay at 16, Montreal and Quebec at 13 and Gatineau at 12. Drummondville and Trois-Rivières experienced modest growth of six per cent and two per cent.

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In Montreal, there were a total of 9,608 transactions in the third quarter, which the report notes is “the fourth most active quarter for this period of the year since 2000.”

The biggest growth in sales in Montreal compared with last year was among condos, at 16 per cent, reaching 3,768 transactions. Next was single-family homes at 11 per cent, for a total of 4,886, followed by plexes at eight per cent, for a total of 947.

Price growth between property categories in Montreal ranged between four and six per cent. Condos saw a four-per-cent rise, reaching $410,000, while single-family homes and plexes saw a six-per-cent rise, reaching $590,000 and $771,000 respectively.

The report also noted that across Quebec, active listings rose in the third quarter of this year compared with last, with 36,824 total, representing a 17-per-cent increase — though the number remains below the historical average of 46,645 listings.

Prices also increased across the province in the third quarter of 2024. The report notes higher prices for single-family homes and condos are the result of growth in the sales of properties above $500,000.

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The median price of a single-family home increased by seven per cent, reaching $448,550. For condos, the median price rose four per cent to $379,250. Small income properties experienced a 10-per-cent increase in median price, reaching $583,000.

“When looking at sales statistics by price segment, it is interesting to note that the largest increases in single-family home sales involve transactions over $500,000 (+29 per cent),” Brant said. “This price segment is above the provincial median price … and accounts for 40 per cent of transactions in this property category. This trend is evident in both metropolitan regions and regional agglomerations, and applies equally to condominiums. We can conclude that, on one hand, the market continues to be driven by repeat buyers, and on the other, the high-end market, above $1 million, is experiencing a rebound.

“Sales in the entry-level segment, $300,000 and below (23 per cent of total transactions), have decreased by six per cent due to a lack of sufficient listings. Finally, the mid-range price segment, which is seeing slightly above-average growth and despite the drop in interest rates, only allows the more affluent (or strategic) first-time homebuyers to access homeownership in competition with repeat buyers from Quebec or elsewhere.”

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