Residential sales fell further in Quebec in 2023, in all property categories, indicate the latest statistics compiled from the Centris provincial database of real estate brokers. The decline amounts to 10,995 fewer transactions than in 2022, for a total of 75,853. Across the province, this is a drop of 13%. The metropolitan region of Montreal suffered a decrease in transactions of 14% as did that of Sherbrooke, while that of Gatineau fell by 15%. Quebec, Trois-Rivières and Saguenay did better with -7%. It was in La Tuque that the residential market experienced its biggest drop, -36%. Sept-Îles declined by 26%, Charlevoix by 25% and Mont-Tremblant by 21%. Only three markets slightly increased their transactions, namely Sainte-Adèle (1%), Alma (4%) and Montmagny (8%).
Although first-time buyers would have expected considerable drops in home prices, due in part to high interest rates and a slight increase in available homes, statistics indicate stability. The median price of single-family homes in Quebec stood at $416,500 in 2023, the same as in 2022. The median price of condominiums saw a slight decrease of 1% compared to 2022 to settle at $360,000 . As for small income properties, their prices increased by 4% and their median price is $520,000.
In Quebec, they instead faced a slight increase of 3% for single-family homes, with the median price reaching $350,000. On the Sherbrooke side, the median price of single-family homes increased by 8% and now reached $377,943. When we dissect the median prices by region, the picture does not reflect that at the provincial level. In Mont-Tremblant, for example, the median price of single-family homes increased by 9%, in Mont-Laurier by 10% and in Matane by 15% compared to 2022.
Although 2023 saw a slight accumulation of properties for sale, with an increase of 24%, it is not enough to swing the market in favor of buyers. “The fourth quarter reflects a market where first-time buyers are even fewer in number,” analyzes Charles Brant, director of the APCIQ Market Analysis Department, in a press release. We observe two phenomena which encourage them to postpone […] their purchase plans: the climate of economic uncertainty and the expectations of a drop in interest rates in 2024.” According to him, in this context, sellers are also inclined to submit their sales project. Charles Brant observes, however, that experienced buyers took advantage of the marked increase in the price of their property during the pandemic and had the means to close transactions. However, this will not be enough, explained the expert, to ensure market fluidity.
Owners who have decided to put their property up for sale in 2023, by choice or by obligation, have had to be patient and will have to continue to be patient if it is not yet sold. The average sales time for single-family homes in Quebec was 54 days in 2023, or 13 days more than in 2022, where 41 were needed. This time, however, is in no way comparable to 2019, where sellers were patient on average 98 days to complete a transaction, or even 107 days in 2018. Those who sold a condominium or small income properties had to allow 14 more days in 2023 to dispose of them with deadlines of 58 days and 75 days.
