After sales records in 2020 and price records in 2021, property prices should stabilize in Quebec in 2022, predicts the Professional Association of Real Estate Brokers of Quebec (APCIQ).
The organization presented its assessment for 2021 and its outlook for the coming year on Tuesday.
It was pointed out that the median price of a single-family home has increased by nearly 24% in the past year. Among the reasons for this peak, there is “the floor level of mortgage interest rates and the increase in disposable income of many households during this second year of the pandemic”, explains the APCIQ in a press release.
In 2022, the APCIQ predicts instead a 3% price increase for Quebec homes. In the Montreal metropolitan area, condominium prices are unlikely to increase by more than 1%, after increases of 18% in 2021.
Despite everything, the APCIQ says it sees the beginning of a real estate bubble in Montreal. But Charles Brabant, director of the market analysis service, believes that an interest rate hike in 2022 will help defuse this process of bubble formation.
Fewer and fewer households are also expected to buy properties over the next year, according to the organization’s forecasts. The APCIQ also forecasts a 12% drop in property sales in Quebec, and a 14% drop in the greater Montreal area. In the province, they had increased by 16% in 2020, to decrease by 3% in 2021.
More details to come.
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