Quebec real estate historic sales declines in January

Quebec real estate: historic sales declines in January

The residential real estate market is currently going through one of the worst periods of the last decade with historical sales declines ranging from 60% to over 90% depending on the region.

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On the territories of the island of Montreal and the Outaouais, the loons are most pronounced. In January, just 888 transactions were made on the island of Montreal, a remarkable 91% drop compared to the same month in 2022.

In Outaouais, a vast area that includes the city of Gatineau in neighboring Ottawa, home sales plummeted 84% in the same month, with more than 300 fewer transactions than in January 2022. We’re talking about adding the Ottawa area in of the region over a decline of 89%.

This data comes from the latest report published by Terram, which specializes in the collection and analysis of land data in Quebec. According to co-founder Daniel Langlois, this, together with inflation and radically changed mortgage lending conditions, explains the significant changes observed.

Transformed States

Note that the Bank of Canada has raised interest rates eight times in less than a year. The last increase – by 25 basis points – was on January 25th. Since then it has stood at 4.50%, compared to 0.25% a year ago.

“The application since January of Canada’s new law, which bans foreign investors from buying a home in major cities for two years, may have played a small role, admits Daniel Langlois. But the most important thing is the credit terms. With the conditions currently offered by the banks, the situation changes completely.”

Other regions, typically unpopular with foreign investors, are seeing a significant drop in activity. The Gaspésie and the Îles-de-la-Madeleine are an example; with a 78% drop in sales last January compared to the same month in 2022.

In Lanaudière and the Laurentians, sales fell by 61% and 64%, respectively. The decline in the Laval area was milder, down 53%. The same is true for Quebec, which fell 59%.

Finally, in Montérégie, a vast region on Montreal’s south shore stretching from the St. Lawrence River to the Eastern Townships, sales saw a 61% decline, a decline in line with the average for regions in the province is identical. A total of 6,025 private homes were sold in Quebec in January, compared to 9,677 a year earlier.

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