How's the market: first semester status report

State of the Real Estate Market in Quebec: Mid-2024 Overview

The first half of 2024 saw a significant rebound in Quebec’s resale real estate market. With inflation slowing down and interest rate cuts expected, many buyers moved quickly to secure properties. While the second quarter continued this recovery, there were minor signs of a potential slowdown in sales volume.

Quebec Real Estate vs. Other Canadian Provinces

Unlike provinces such as Ontario and British Columbia, Quebec witnessed a noticeable increase in real estate transactions. This was largely due to a faster economic recovery and housing prices that remain more aligned with household incomes, making the market more accessible for buyers.

Key Factors Driving Quebec’s Real Estate Market

Several factors have fueled Quebec’s market dynamics. Financially secure buyers aged 35 to 54, as well as baby boomers investing in condominiums or secondary homes, have played a crucial role in this rebound. Moreover, gains in the stock market and the rise of cryptocurrency investments have provided these groups with additional capital to leverage in the housing market.

First-Time Buyers: Challenges and Opportunities

First-time homebuyers continue to face challenges due to rising property prices and high interest rates, despite representing nearly 50% of all transactions. However, intergenerational wealth transfers have provided financial relief for about a third of these buyers, helping them navigate the difficulties of entering the market.

Future Outlook for Quebec’s Housing Market

The Quebec real estate market remains firmly in favor of sellers, even with a rise in available inventory. A lack of new housing construction is intensifying supply shortages, and recent government initiatives to stimulate building activity have yet to yield significant results.