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The Québec Federation of Real Estate Boards (QFREB) recently published a text in Fenêtre sur le marché in which it outlines the real estate market in the higher price ranges.

According to the QFREB, the overall Québec residential real estate market has been surprisingly strong since last fall, in a context where the mortgage tightening measures introduced in October were expected to once again slow down first-time buyers’ enthusiasm. However, activity from households that are not purchasing their first property has clearly more than made up for it.

SALES OF SINGLE-FAMILY HOMES PRICED AT $500,000 AND ABOVE ARE GROWING STEADILY

The Centris® system of real estate brokers recorded 4,429 sales of single-family homes completed at $500,000 or more in Québec over the 12-month period from June 2016 to May 2017. This represents a 20% increase compared to the same period one year earlier. Strong increases in sales were observed in this price range, particularly in the Gatineau (+40%), Sherbrooke (+26%), and Montréal (+22%) regions.

In addition, areas with a significant share of vacation properties are performing well in this regard. Sales of single-family homes priced at $500,000 or more increased in the Saint-Sauveur (+16%), Mont-Tremblant (+58%), Granby (+65%), Sainte-Adèle (+94%), Magog (24 compared to 17), and Sainte-Agathe-des-Monts (24 compared to 21) areas. Activity in this price range has increased across the province over the past year, with the exception of the Québec City region, where sales instead fell by 18%.

ONE IN TWELVE HOMES SOLD FOR MORE THAN $500,000 IN QUÉBEC

Across the province, sales at $500,000 or more accounted for 8% of single-family home transactions over the past 12 months, which corresponds to about one in twelve homes. This proportion is of course much higher in the Montréal region, where it reaches 15%, or about one in seven homes.

Proportion of single-family home sales above $500,000 and above $1,000,000 – June 2016 to May 2017

SALES OF SINGLE-FAMILY HOMES PRICED AT $1,000,000 AND ABOVE ARE ALSO GAINING GROUND

This segment recorded 768 transactions, representing only 1.4% of single-family home sales in the province from June 2016 to May 2017. Nevertheless, it posted strong growth of 26%. This growth is not solely attributable to the Island of Montréal (560 sales, +24%). The QFREB also highlights significant increases in activity on Montréal’s South Shore (58 sales, +61%), in Mont-Tremblant (21 compared to 13), and in the rest of the province (56 sales, +60%).

Consult the full text of the QFREB’s Economist’s Note for all the details.

Source: centris.ca