Quebec Home Sales Slowed By Increased Prices

Soaring prices have weakened June sales in the Montreal and Quebec City, QC, residential markets, says the Quebec Professional Association of Real Estate Brokers (QPAREB). June residential sales fell significantly in both markets compared to June 2020, due to increases in home prices and a rapid drop in active listings. Montreal had 4,619 residential sales transactions, a decrease of seven per cent compared to the year-ago period, while Quebec city had 738 residential sales transactions, down 20 per cent over last year. By property category, sales of single-family homes across the Montreal census metropolitan area (CMA) fell by 18 per cent compared to June of last year. In contrast, a new sales record was set for condominiums, with a three per cent increase year-over-year, which is consistent with the trend at the start of the year. The same was true for small income properties (plexes) as sales jumped by 28 per cent with a record-setting 552 sales. The increase in the supply of plexes on the market (+29 per cent) is in contrast to the decrease in supply that was seen for single-family homes (-37 per cent) and condominiums (-4 per cent). In Quebec City, 69 plex transactions were concluded in June (+13 per cent), which is a record for this property category. A total of 210 condominium transactions were concluded (-2 per cent), which represents a relatively high level of activity by historical standards for this category. Sales of single-family homes (457 transactions) decreased by 29 per cent compared to June of last year. The supply of single-family homes for sales fell dramatically (-51 per cent) compared to June of last year, further tightening market conditions in favour of sellers and fostering situations of overheating and overbidding in several areas. For condominiums and plexes, active listings fell by 35 per cent and 4 per cent, respectively.