The trend that began to emerge in the province’s real estate market in recent months continued for the month of July, with a decline that was confirmed in Montreal and a still robust market in Quebec.
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In the census metropolitan area (CMA) of Montreal, 3,080 residential transactions were recorded in July, a drop of 18% compared to the same month of 2021.
“In continuity with what was recorded in June, the change in market dynamics is clearly confirmed. The magnitude of the interest rate hike, in just four months, has accelerated the market downturn, albeit much more gradually than in other major Canadian cities,” noted Charles Brant, Director of market analysis of the Professional Association of Quebec Real Estate Brokers (APCIQ).
“The direct consequence is the fall in the proportion of sales concluded following a process of overbidding and the beginning of a decline in prices, with the exception of plexes, if we analyze their evolution over the two last few months,” he added.
While the North Shore sector of the metropolis experienced a 3% increase in residential sales, that of the South Shore however fell by 12%.
Much greater slowdowns were also recorded in Vaudreuil-Soulanges (-20%), the island of Montreal and Laval (-29%) and Saint-Jean-sur-Richelieu (-20%).
Plexes and condominiums were less popular with buyers, with declines of 38% and 20% respectively compared to July 2021. Single-family homes, for their part, posted a decline of lesser magnitude (-12%).
And while the median price of single-family homes increased by 10% compared to last year, reaching $550,000, it still fell by $30,000 compared to the April 2022 peak.
A first price drop for the year was also observed in the median price of condominiums at $391,500. The median price of plexes has been stable for several months at $776,000.
“The Quebec City metropolitan area market is one of the rare markets in the province and the country to record an increase in sales compared to the same period last year. However, this activity was partly explained by the absorption of an increasing inventory of single-family properties in the market for this time of year, and compared to June for the first time since 2017, in both scenario,” observed Mr. Brant.
“Although this rise will need to be confirmed in August and September to speak of a trend, it is a precursor to a slowdown in the market and much weaker price growth or stabilization in the coming months,” he specified.
A total of 544 residential transactions were recorded in the Québec CMA, a gain of 1% compared to July 2021.
The agglomeration of Quebec and the Northern Periphery respectively reported an increase of 4% and 12% in their sales, against a decline of 16% observed for the South Shore.
Sales of small properties increased by 5% compared to the same month last year, when single-family homes increased by 7%. Condominiums decreased by 11%.
The median price of single-family homes has remained stable since the spring ($350,000), while the median price of condominiums stood at $235,000 (+11%) and small properties at $383,000 (+16%) .