The Quebec resale market had a strong month in July, both in terms of sales and prices. It also outperformed most other Canadian provinces (see table below), according to the latest CREA statistics released this morning.
Last month in La Belle Province, the number of sales increased by 12%, and the average price of residential properties rose by 6% compared to July 2023. During the same period, in British Columbia, sales declined by 3%, and the average price slightly decreased (-1%). In Ontario, despite a 3% increase in sales, the average property price dropped by 2%.
In fact, this trend has been consistent since the beginning of the year. Quebec has not experienced any monthly decline in sales so far in 2024, and for the cumulative first seven months, the 13% increase in sales places Quebec at the top among Canadian provinces, tied with Alberta. In terms of prices, Quebec has just recorded its 13th consecutive monthly increase, with a cumulative rise of around 7% so far in 2024. Only Alberta (+9%), New Brunswick (+9%), and Newfoundland (+8%) have done better.
Momentum that could continue
These results are promising, especially as interest rates are finally starting to decline. After two 0.25 percentage point reductions at each of its last two meetings (June 5 and July 24), financial markets are anticipating (primarily due to recent disappointing labor market data) that the Bank of Canada will make another cut to its key interest rate at its next meeting on September 4. In the same vein, mortgage rates are also likely to decrease for both variable and fixed-rate mortgages.
As a result, some buyers who had been waiting on the sidelines may gradually return to the market in the coming months, allowing the Quebec real estate market to continue performing well. However, August might be the exception that proves the rule if recent flooding has caused some transactions to fall through.
