The Quebec Professional Association of Real Estate Brokers (QPAREB) released its residential real estate market statistics for the Quebec City Census Metropolitan Area (CMA) for the month of February.
The residential market continued to slow in February, with sales down by 9 per cent to reach 1,057 residential transactions. Despite a decline relative to the record February of 2021, the number of sales was still strong when compared to the average February sales of just under 900 since 2016.
“A continuation of January, the month of February posted activity significantly higher than the pre-pandemic level, although significantly down compared to the same period in 2020 and 2021,” notes Charles Brant, QPAREB director of market analysis. “In a context of a low inventory of properties for sale on the market, which has now extended to all categories, including condominiums, the median price of residential properties continues to rise in an evenly sustained manner. The Bank of Canada’s recent announcement that it is starting the process of raising interest rates could slightly dampen demand over the next few months. It all depends on how the economy and inflation will evolve in the emerging geopolitical context.”
Declines were much larger in the outlying areas, with sales dropping by 16 per cent in the Northern Periphery of Quebec City, and by 28 per cent on the South Shore. The agglomeration of Quebec City posted a decrease of 2 per cent.
The condominium category experienced a much smaller decline in sales than the other categories with 376 transactions (a decline of less than 1 per cent compared to February 2021). Sales of single-family homes fell by 12 per cent, down to 607 transactions. Small income properties, a market segment which remains limited in importance, and which may therefore be subject to more volatility, saw sales decrease by 20 per cent.
Active listings continued to decline in February, reaching 2,376 properties on the market in the CMA. While this represents a decrease of 32 per cent compared to February 2021, nevertheless it exhibits some moderation in the month-to-month downward trend.
Despite this moderation, the median price of residential properties continued to rise in the CMA in February. It stood at nearly $340,000 for the month, a gain of 15 per cent compared to the same period in 2021, and an increase of $15,000 compared to the January 2022 price ($325,000). The median price of condominiums reached $225,000, a gain of 14 per cent compared to last year and $8,000 more than in January 2022.
The price of small income properties increased by 12 per cent to $412,500. This figure represented a substantial increase compared to the average of the previous three months ($350,000). A substantial increase in the median price of duplexes sold in February had a significant impact on this trend.