Real estate market slows down in Quebec: Outaouais resilient amidst decline
Residential real estate sales in Quebec have continued to decline, with the first quarter of 2023 recording the lowest level of sales in the last 10 years. The Quebec Professional Association of Real Estate Brokers (QPAREB) has released its quarterly residential real estate market statistics for the province based on the real estate brokers' Centris provincial database.
While the inability of many first-time homebuyers to qualify for a loan has played a role in the decline, the wait-and-see attitude of experienced buyers and sellers has also contributed to the weakening of transaction levels and the rebound in selling times.
Despite weak activity, market conditions continue to favour sellers, leading to relatively stable prices compared to last year. The most affordable markets, including the Gatineau region, have shown resilience with a level of activity that contrasts particularly with the sharper decline in the Montreal region.
Residential sales in the Gatineau CMA stood at 910 in the first quarter of 2023, a decrease of 28 per cent compared to the same period last year. Single-family homes and plexes are the categories that recorded the most significant accumulation of properties for sale on the market. The number of months required to sell the inventory is up to three for all categories combined.
Median prices in the Gatineau CMA are down compared to prices for the first quarter of 2022. The most notable drop is for single-family homes, with a median price of $428,000, down 7 per cent. The median price for condominiums was $292,750, down 5 per cent. The median transaction price for small income properties was $515,000, a decrease of 5 per cent.
Across Quebec, the median price of single-family homes reached $400,000, down 4 per cent from the first quarter of 2022, while condominiums posted a median price of $349,000, a drop of 4 per cent compared to the same period last year. The median price for small income properties was $450,000 in the first quarter of 2023, a decrease of 13 per cent compared to the first quarter of 2022.
Despite the current slowdown in activity, the number of months needed to sell the inventory of residential properties on the market is still at a level that favours sellers in the province. The sharp drop in transactional activity is reflected, in particular, by an increase in active listings, with the number of months required to sell the inventory up to four for all categories combined.
Photo Caption: Building in Gatineau
Photo Credit: Tashi Farmilo