The real estate market in the metropolis suddenly cooled on Thursday, while the capital “starts the summer with vigor”, according to a statistical compilation from the Professional Association of Real Estate Brokers of Quebec (APCIQ).
In Greater Montreal first, home sales fell 10% in June year-on-year. We have to go back to 2015 to observe a similar level of sales for the month of June.
This drop in sales is particularly noticeable in the market for small income properties, where the number of transactions fell by 16%.
The amount of transactions has also decreased. The median price for plexes was $726,500 in June, down 6%. With a median price of $390,000, condominiums recorded a decline of 5% for the period. Single-family homes traded at a median price of $550,000, down 4% from last year.
These statistics are based on the provincial Centris database of real estate brokers.
The continued rise in interest rates (which are now close to 7%) is certainly contributing to this cooling. ” As a result, [les acteurs du marché] may postpone their purchase or sale project”, indicates the APCIQ.
The number of properties placed on the market still jumped 32% compared to last year. Thus, 15,806 registrations were listed in Greater Montreal in June 2023.
Montreal real estate is still the most expensive in Quebec. More than 50% of the single-family properties put on the market are displayed there at more than $700,000.
All in all, “prices are tending to stabilize while market conditions are slightly less favorable to sellers”, summarizes the APCIQ.
Vigor in Quebec
The real estate market fell slightly in Quebec last month (-2% in the number of sales concluded), but this does not reflect the “vigor” of the market, according to the APCIQ. “The level of sales remains well above the historical average for the month of June,” we argue.
Prices are increasing across all property categories. The median price of plexes stood at $405,000 in June 2023, an increase of 7% compared to the same period last year. The condominium category, with a median price of $245,000, follows with a 2% increase. Finally, the median price of single-family homes remains stable at $350,000 for a variation of 1%.
The number of properties for sale in Quebec rose by 19% last month compared to last year. The increase in active listings was more marked for single-family homes (31 per cent). An increase in the inventory is also observed for condominiums (9%). Note, however, an 8% drop in listings for plexes.
Future buyers in Quebec are relatively “insensitive” to interest rate variations “unlike the province’s markets, which have been the most exposed to strong property price inflation in recent years”, analyzes Charles Brant, director of the APCIQ Market Analysis Department
The Quebec real estate market is still in favor of sellers, according to him.