Mortgage Basics

Your Definitive Guide to the Provincial Housing Market in Quebec for 2023

Your Definitive Guide to the Provincial Housing Market in Quebec for 2023

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Market Report Summary for June 2023

  • Quebec’s average home sale price decreased 4.51% year-over-year to $451,313 for June 2023. While in comparison, nationally, the average home sale price was down 15.8% from a year ago to $715,400.
  • The median price of a single-family home in Quebec decreased by 2% year-over-year to $420,000 for June 2023. While in comparison, nationally, the average detached home sale price was down 17.5% from a year ago to $781,300.
  • The median condo price in Quebec decreased by 5% year-over-year to $354,500 for June 2023. While in comparison, nationally, the average condo sale price was down 7.9% from a year ago to $528,500.
  • The median plex (2 to 5 units) price in Quebec decreased by 6% year-over-year to $500,000 for June 2023. While in comparison, nationally, the average townhouse sale price was down 13.1% from a year ago to $660,700.
  • The median rent for a 1-bedroom apartment in Quebec increased by 9.8% year-over-year to $1,589 for June 2023. While in comparison, nationally, the average rent was up 10.1% from a year ago to $1,729.

Quebec Housing Market Outlook

As of June 2023, data from the Quebec Professional Association of Real Estate Brokers (QPAREB), more commonly known in French as l’Association professionnelle des courtiers immobiliers du Québec (APCIQ) indicates that the average price of resale residential homes sold across Quebec in June 2023 was $451,313, a slight decrease of 4.51% compared to a year ago. 

Residential sales activity reported through the real estate board for Quebec numbered 8,112 units in June 2023. This was a sharp decrease of 25% compared to a year ago. 

The number of new listings for Quebec decreased slightly by 8% compared to a year ago. There were 12,206 new residential listings in June 2023. Active residential listings numbered 32,729 units on the market at the end of last month, up sharply by 49% compared to a year ago

Month Average Price Units Sold New Listings SNLR Market
January $417,700 4076 8,585 47.48% Balanced
February $436,800 6,205 10,023 61.91% Exiting Balanced
March $451,313 8,112 12,206 66.46% Exiting Balanced
Data and figures were collected from the Quebec Professional Association of Real Estate Brokers (QPAREB)

The sales to new listings ratio (SNLR) is the number of home sales compared to new listings. An SNLR under 40% suggests a buyer’s market where buyers have the upper hand and more negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 70% is considered a seller’s market. 

Who’s Buying Quebec Real Estate?

Until recently, the primary demographics driving demand in Quebec’s, and more importantly, its biggest city, Montreal’s residential property market were those looking to upsize their homes, foreign investors looking to purchase an investment property in one of Canada’s university towns, professionals who recently immigrated to Canada in the past 5 years, and out-of-province migrants advancing their careers in and around Montreal. 

With the passing of the omnibus Bill C-32 legislation, including the foreign buyers’ ban and anti-flipping tax, the Quebec homebuyers’ demographic may be shifting away from foreign investment. However, it remains to be seen whether efforts to limit foreign buyers in Quebec will impact it; according to Statistics Canada, foreign investors make up less than 5% of homeowners in Quebec’s total homeownership. However, that number significantly jumps to 50% when considering properties valued over $1 million for non-Quebec residents.

Multi-property Investors

According to an article by Newswire, investors and multi-property owners accounted for over 16% of Quebec’s homebuyers in 2021, particularly in downtown Montreal, where the numbers were even higher. 

Upsizing Buyers

Upsizing by buyers has driven Quebec’s demand for single-family homes, which showed the highest year-on-year price increase of all property types from $371,700 in February 2020, which is still more than 39% lower than today’s price at $517,800. You’ll notice that most of Quebec’s 7-digit home valuations are centred in and around the Outremont and Westmount boroughs of Montreal.

Immigration & Out-of-province Migration

While the pandemic saw thousands of homebuyers leaving urban areas searching for more space and affordable housing, new immigrants are making Quebec’s affordable homes a continued surge.  Although many provinces except for Alberta saw a stark net migration out, Quebec continues to see net migration into the province due mainly to more affordable housing and distinct culture.  Quebec currently boasts the second-best labour market and participation rate. According to this report by Re/Max, the federal government expects to bring an additional 2 million new immigrants to Canada – many of whom will still choose to settle in Toronto, Vancouver and Montreal.

First-Time Homebuyers

Getting a mortgage in Quebec as a first-time buyer can be challenging for many. On average, Quebec municipalities have some of the highest property tax rates among the larger provinces of comparable size. Ontario averages around 1%, whereas BC and Alberta average well below that. 

While programs like the First Time Home Buyer Incentive are in place to help people afford homes in Quebec, this has yet to do much to offset affordability as the stress test makes it harder to qualify. At the same time, the Bank of Canada keeps rates elevated – adding a barrier to qualifying for a home without a combined household income over $120,000. 

Given the slowdown over the last 12 months in home prices, Quebec remains an affordable market to purchase a first home – for those looking to get good value for their money!

Provincial Housing Data for June 2023

Housing data for Quebec provincially and broken down regionally with average prices by housing type.

Median Price YoY Change Units Sold YoY Change Average Selling Days YoY Change
Single-Family Home $420,000 -2% 5,288 -19% 58 49%
Condominium $354,500 -5% 2,177 -28% 59 34%
Multiplex (2 to 5 units) $500,000 -6% 612 -45% 85 25%
Data and figures were collected from the Quebec Professional Association of Real Estate Brokers (QPAREB).

Region Composite Price Single Family Home Row/ Townhouse/ Multiplex Condo / Apartment YoY Change
Montreal $511,500 $599,300 $558,500 $388,900 -6.4%
Quebec City $329,000 $378,200 $305,200 $229,600 -0.1%
Central Quebec $252,200 $252,800 $0 $217,500 4.5%
Estrie $353,000 $364,800 $0 $275,300 3.4%
Mauricie $236,300 $237,800 $0 $220,100 4.0%
Data and figures were collected from the Quebec Professional Association of Real Estate Brokers (QPAREB). 0 infers data unavailable or enough for reporting purposes. Some regions did not have enough sales to report

Regional Breakdowns June 2023

Quebec’s housing market breakdowns on a regional level.

Montreal

Median Price YoY Change Units Sold YoY Change Average Selling Days YoY Change
Single-Family Home $535,000 -5% 2,083 -21% 53 96%
Condominium $381,500 -5% 1,559 -33% 58 57%
Multiplex (2 to 5 units) $711,000 -8% 302 -42% 76 46%
Data and figures were collected from the Quebec Professional Association of Real Estate Brokers (QPAREB)

Quebec City

Median Price YoY Change Units Sold YoY Change Average Selling Days YoY Change
Single-Family Home $331,010 -1% 429 -30% 52 0%
Condominium $232,000 3% 248 -34% 61 -28%
Multiplex (2 to 5 units) $382,500 -4% 52 -29% 77 22%
Data and figures were collected from the Quebec Professional Association of Real Estate Brokers (QPAREB)

Rest of Quebec

Median Price YoY Change Units Sold YoY Change Average Selling Days YoY Change
Single-Family Home $517,800 -5.9% 2776 -23% 54 52%
Condominium $365,300 -5.8% 370 -32 59 34%
Multiplex (2 to 5 units) $517,800 -3.9% 258 -39 79 23%
Data and figures were collected from the Quebec Professional Association of Real Estate Brokers (QPAREB)

[Data and figures were collected from the Quebec Professional Association of Real Estate Brokers (QPAREB).]

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Quebec Rental Market June 2023

Average rental cost comparisons between Montreal and other municipalities in Quebec or nationally.  

Each $100K in mortgage balance costs an average of $550 per month for principal and interest on the current insured fixed rate and $620 per month on the current insured variable rate.  Rates used for calculation are those offered on insured purchases with less than a 20% downpayment over 25 years of amortization.  Each 0.25% change in mortgage rates impacts the monthly payment by $14 to $16 on a 25-year amortization.

Montreal Rental Prices Compared to Other Canadian Cities

As the table below shows, Montreal is the most expensive city for rentals in Quebec and 20th nationally.

Province Total Bachelor 1Bdr Average 2Bdr Average 3Bdr Average Total YoY Change
Vancouver BC $3,146 $2,276 $2,765 $3,727 $4,200 18.70%
Burnaby BC $2,866 $1,747 $2,286 $3,171 $3,638 19.90%
Toronto ON $2,818 $1,987 $2,516 $3,301 $3,890 22.40%
Etobicoke ON $2,587 $1,967 $2,285 $2,848 $2,888 21.40%
Mississauga ON $2,549 $1,876 $2,253 $2,688 $3,047 21.50%
Brampton ON $2,518 $1,709 $2,143 $2,624 $2,909 29.10%
North York ON $2,497 $1,657 $2,174 $2,706 $3,376 24.10%
Kelowna BC $2,402 $1,530 $1,932 $2,728 N/A 3.60%
Barrie ON $2,363 $1,575 $2,019 $2,583 $2,626 12.30%
Surrey BC $2,342 $1,938 $1,951 $2,497 $2,627 17.90%
Halifax NS $2,215 $1,732 $2,089 $2,425 $2,890 20.10%
Victoria BC $2,214 N/A $2,004 $2,513 $3,325 7.30%
Kitchener ON $2,195 $2,324 $1,944 $2,405 N/A 21.00%
Hamilton ON $2,106 $1,640 $1,890 $2,308 $2,369 21.40%
Ottawa ON $2,090 $1,625 $1,925 $2,363 $2,485 15.40%
Oshawa ON $1,979 $1,348 $1,825 $2,123 $2,185 9.30%
London ON $1,978 $1,394 $1,775 $2,123 $2,559 24.60%
Kingston ON $1,921 $1,633 $1,700 $2,136 $2,278 13.20%
Calgary AB $1,890 $1,276 $1,686 $2,048 $2,393 24.90%
Montreal QC $1,876 $1,365 $1,619 $2,155 $2,455 10.90%
Winnipeg MB $1,478 $1,066 $1,320 $1,615 $2,055 13.60%
Lethbridge AB $1,314 $1,056 $1,212 $1,387 $1,600 17.80%
Edmonton AB $1,300 $940 $1,147 $1,475 $1,574 11.20%
Saskatoon SK $1,176 $877 $1,122 $1,234 $1,438 9.30%
Regina SK $1,139 $849 $1,072 $1,290 N/A 13.90%
Data gathered from the source: National Rents Report published by Urbanation Inc. rental.ca network.

Quebec Rental Prices Compared to Canada and the Provinces

As the data below shows, Quebec has median affordability for rents among the provinces, with over 1 million inhabitants.  

Average Rents by Housing Type

Province Total Bachelor 1Bdr Average 2Bdr Average 3Bdr Average
AB $1,461 $981 $1,307 $1,628 $1,668
BC $2,441 $1,904 $2,168 $2,857 $3,342
MB $1,463 $1,066 $1,310 $1,588 $1,814
NS $2,167 $1,723 $2,029 $2,368 $2,586
ON $2,401 $1,802 $2,180 $2,649 $2,954
QC $1,839 $1,329 $1,589 $2,035 $2,340
SK $1,097 $856 $1,034 $1,173 $1,351
CA $1,937 $1,395 $1,749 $2,127 $2,402
Data gathered from the source: National Rents Report published by Urbanation Inc. rental.ca network.

Rental Growth by Housing Type

Province Total YoY Change Bachelor YoY Change 1Bdr YoY Change 2Bdr YoY Change 3Bdr YoY Change
AB 13.40% 0.60% 13.00% 14.80% 7.30%
BC 13.20% 8.40% 11.00% 13.00% 6.40%
MB 12.60% 13.80% 14.60% 12.50% 5.60%
NS 20.80% 14.10% 22.70% 21.00% 33.60%
ON 17.10% 19.00% 16.90% 15.80% 13.60%
QC 22.20% 2.80% 9.80% 9.90% 6.00%
SK 8.00% 13.30% 8.70% 7.70% 7.00%
CA 10.90% 4.90% 10.10% 10.70% 6.80%
Data gathered from the source: National Rents Report published by Urbanation Inc. rental.ca network.

 Frequently Asked Questions

Is the Quebec housing market going to crash in 2023?

Quebec home prices are currently sagging due to surging mortgage rates. Quebec prices remain below average compared to the rest of the country, and with the current Bank of Canada rate hikes, mortgages have been harder to qualify for due to the stress test. Quebec prices will recover quicker than in other areas once mortgage rates decline back to manageable levels for homebuyers to purchase or homeowners to refinance their homes. 

Will Quebec’s housing prices increase in 2023?

Although currently declining, many experts believe that a turnaround is imminent.  Buyers are waiting on the sidelines for the opportune time to make a move. The market has already started to get closer to becoming a seller’s market.

How do I get approved for a mortgage in Quebec?

To get approved for a mortgage in Quebec, look at Quebec mortgage rates and see how much you can afford. This will give you an idea of what it will cost to buy a home in Montreal at today’s prices and rates. You can check out what you need to get pre-approved for a mortgage or start by getting a quote.

Final Thoughts

Quebec’s property market is set to remain strong as increases are expected for the remainder of 2023. The average home price in Quebec is recovering quicker than in other areas around Canada. However, this comes after months of record consecutive price rises during the pandemic and one of the most intense periods of price appreciation the city has ever seen. 

While the property market appears to be recovering value in Quebec, it’s important to remember that some volatility should be expected over the long term. It’s always a good time to buy a property if you’re a qualified buyer. Over the long term, expect property values to keep surging as immigration brings more buyers to the Canadian market.

If you are looking for a home in 2023, expect an imminent turnaround in the housing market over the next few months. Contact our knowledgeable and commission-free mortgage experts at nesto to help guide you through the home-buying process.


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