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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.

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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

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%

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%

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%

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%

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).]

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%

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

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%

 Frequently Asked Questions

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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