Quebec heads for home sales record but it may be short-lived

Home sales in Quebec are set to end 2017 on a record high but 2018 could be even better.

That’s the outlook from the Québec Federation of Real Estate Boards (QFREB) which believes that a new high of 82,000 for 2017, up 6% year-over-year, will be beaten in the following 12 months with sales breaking the 85,000 mark.

"Despite the anticipated rise in interest rates and the additional tightening of mortgage rules – this time for mortgages with a loan-to-value ratio of less than 80% – the demand for housing will be strong, stimulated by job creation, migration and consumer confidence," said Paul Cardinal, Manager of the QFREB's Market Analysis Department.

The median price for single-family homes is also heading higher with a 4% gain forecast in 2017 to $243,000, and a further 3% rise to $251,000 in 2018.

These gains will be led by the Montreal CMA with QFREB predicting an 8% rise in sales this year to 42,800 and a 5% rise in 2018 to 45,100. The median price for single-family homes is forecast to be $315,000 in 2017, up 7%
year-over-year; and up 5% in 2018 to $332,000.

"For the first time in history, we should surpass 45,000 sales in the city," said Mr. Cardinal. "The condominium segment will be particularly strong," he added.

The median price for condos in the Montreal CMA is expected to rise 3% this year and next to $247,000 this year and $255,000 in 2018.

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