Quebec City Real Estate Market Sets New Condominium Price Record
The Quebec City real estate market experienced a strong September, particularly in the condominium segment, which set a new price record. Despite the overall positive performance, there has been a gradual increase in active listings, although market conditions continue to favor sellers. The Quebec Professional Association of Real Estate Brokers (QPAREB) released its residential real estate market statistics for September 2023, highlighting the continued momentum of the Quebec City market.
During September 2023, the Quebec City Census Metropolitan Area (CMA) recorded 624 residential sales, representing a 6% increase compared to the same period last year. This level of transactional activity is the third-best since market data compilation began in 2000. The market's resilience is attributed to buyers' confidence in the region's economy, despite a more negative provincial economic outlook. The affordable residential market, combined with solid economic fundamentals, has made households in the region less sensitive to rising interest rates.
Shift in Property Preferences
While sales of single-family homes have plateaued, there has been a shift towards condominiums, which have seen a marked rise in sales. This shift can be attributed to the fact that single-family home prices have already exceeded previous peaks, and inventory for this property category remains low.
Regional Variations and Market Indicators
Transactional activity varied across different areas within the Quebec City CMA. The South Shore of Quebec City experienced a 16% increase in sales, followed by the Northern Periphery with 6% growth. The Agglomeration of Quebec City saw a 2% increase in transactions. Active listings in September 2023 reached 2,929, with a 4% increase compared to the previous year. The average selling time for different property categories ranged from 64 to 82 days, depending on the type of property.
The median price for single-family homes increased by 7% to $353,500, while condominiums saw a 4% increase to $248,500. Plexes, on the other hand, experienced a 3% decrease in median price. The market also saw variations in median prices compared to the previous month, with condominiums showing an 8% increase, single-family homes remaining stable, and small income properties recording a 3% decline.
The Quebec City real estate market continues to demonstrate strength and resilience, with the condominium segment setting new records and buyers showing confidence in the region's economy.
Implications of Quebec City's Real Estate Market Trends for New Businesses
The recent surge in the Quebec City real estate market, particularly the condominium segment, offers a unique perspective for new businesses. The record-setting prices and increased transactional activity reflect a robust and resilient market, driven by buyer confidence and solid economic fundamentals.
Shifting Property Preferences: A Business Opportunity
The shift towards condominiums, as single-family home prices exceed previous peaks, presents a potential opportunity for businesses catering to this market segment. New businesses, especially those in the real estate, construction, and related sectors, could capitalize on this trend to offer products and services tailored to the needs of condominium buyers and owners.
Regional Variations: A Strategic Consideration
The variations in transactional activity across different areas within the Quebec City CMA highlight the importance of understanding regional market dynamics. New businesses must consider these regional variations when developing their business strategies. For instance, areas with higher sales growth may offer more opportunities, while those with slower growth may require a different approach.
Ultimately, the strong performance of the Quebec City real estate market, despite a more negative provincial economic outlook, underscores the market's resilience. This resilience, coupled with the ongoing shift in property preferences, offers a promising landscape for new businesses willing to adapt and innovate in response to these trends.