Market Report

The province’s residential real estate market is currently enjoying strong momentum in the higher price ranges. Over the last 12 months (June 2016 to May 2017), when compared to the equivalent period one year earlier, the number of properties sold at $500,000+ increased by 20 percent for single-family homes and by 33 percent for condominiums. Sales of single-family homes at more than $1,000,000 grew by 26 percent.

Experienced buyers are very active

The market’s solid performance in the higher price ranges in Québec is not solely attributable to the Montréal area; Québec’s residential real estate market as a whole has been surprisingly strong since last fall. Mortgage tightening measures introduced in October were designed to curb the enthusiasm of first-time buyers, but activity from households that are not buying their first property has more than compensated. Strong job creation1, an increase in net migration2, a high level of consumer confidence, and stable mortgage rates are creating favourable conditions for the resale market.

Over the past few months, due to a drop in the number of properties for sale, market conditions have once again given sellers the upper hand in many areas in the lower and medium price ranges, which makes it easier for second- and third-time buyers to move up to a higher-end property, as they can sell their current home at advantageous conditions.

Sales of single-family homes at $500,000+ are growing at a good pace

As previously mentioned, the number of single-family homes sold at $500,000+ in Québec increased by 20 percent when compared to the equivalent period one year earlier. Sales in this price range increased significantly in the areas of Gatineau (+40 percent), Sherbrooke (+26 percent) and Montréal (+22 percent). Areas that have a significant number of resort properties also did quite well: the agglomerations of Mont-Tremblant (+58 percent), Granby3 (+65 percent), Sainte-Adèle (+94 percent), and Magog (+41 percent). In fact, activity in this price range has increased everywhere in the province, except in the Québec City area where sales fell by 18 percent.

One in twelve homes in Québec sells for more than $500,000

In Québec, sales at $500,000+ accounted for 8 percent of all single-family home transactions in the last 12 months, which is approximately one in twelve homes. In the Montréal area, this proportion is about one in seven homes. Overall, in this price range, there has been an improvement in many key real estate market indicators: the number of active listings is decreasing, selling times are becoming shorter, and the number of months of inventory is falling.

Significant increase in condominium sales at $500,000+

As for condominiums, sales in the $500,000+ price range are also steadily progressing. In that price range in the past year, 1,090 condominium sales were concluded, an impressive jump of 33 percent. Of course, the Island of Montréal had the lion’s share of these transactions, but the following areas also turned in a solid performance: the Québec City area, the South Shore of Montréal, Laval and Mont-Tremblant.

Interestingly, the average selling time for units at $500,000+ (136 days) is not much higher than the overall condominium market average (132 days), and has fallen slightly over the past year (-6 days). However, with respect to market conditions, buyers still have the upper hand when negotiating properties in this price range because of the high number of months of inventory4.

Sales of single-family homes at $1,000,000+ are also gaining ground

The sales of single-family homes at $1,000,000+ in the past year only accounted for 1.4 percent of the province’s total home sales, but this segment nevertheless registered an increase of 26 percent. Strong growth was not only seen on the Island of Montréal (+24 percent), but also on Montréal’s South Shore (+61 percent), in Mont-Tremblant (+62 percent) and in the rest of the province (+60 percent).

It is evident the Montreal residential real estate market has picked up significant momentum in the past year, especially in the high-end markets, and for anyone thinking about selling, now is the time to do it.

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