Quebec Federation of Real Estate Boards

Quebec Federation of Real Estate Boards

May 13, 2009 10:41 ET

Quebec Real Estate: Major Increase in Economic Impact

ILE-DES-SOEURS, QUEBEC--(Marketwire - May 13, 2009) - The economic impact of expenditures in Quebec related to the residential real estate market grew from $1.8 billion between 2004 and 2006 to $2.8 billion between 2006 and 2008, an increase of 55 per cent, according to a study commissioned by the Quebec Federation of Real Estate Boards.

The study, conducted by Altus Group Economic Consulting, indicates that between 2006 and 2008, households spent an average of $34,525 on ancillary expenses when buying or selling a property compared to $25,850 between 2004 and 2006, an increase of 34 per cent. These expenditures include various household purchases, furniture and appliances, moving costs, renovations, taxes and services.

"The renovations sector registered the largest increase, 95 per cent, when compared with the last study, with households spending an average of $12,000 between 2006 and 2008," said Michel Beausejour, FCA, Chief Executive Officer of the Federation. "The introduction of home renovation tax credits by the governments of Quebec and Canada will likely boost this sector even more," he added.

The Altus Group study also shows that between 2006 and 2008, 30,585 direct and indirect jobs were created through residential real estate, an increase of 50 per cent compared to the 20,450 jobs created between 2004 and 2006. This increase is particularly notable in the construction sector, due to the increased expenditures for renovations. While the number of new jobs in the construction sector represented 11 per cent of the total number of jobs created between 2004 and 2006, it accounted for 16 per cent of jobs created between 2006 and 2008. Other major fields are commerce, finance, insurance and real estate, each one accounting for 20 per cent of new jobs.

"This job creation shows how the real estate market influences Quebec's economy," added Mr. Beausejour. "The impact of renovation work on the construction sector also confirms the importance of the tax credits that were put in place by the provincial and federal governments. In today's economy, a renovated property will undoubtedly be more attractive to potential buyers."

According to the study, there was an average of 81,299 MLS® sales transactions per year between 2006 and 2008, compared to an average of 69,973 transactions per year between 2004 and 2006, an increase of 16 per cent.

About the Quebec Federation of Real Estate Boards

The Quebec Federation of Real Estate Boards is a non-profit organization that oversees Quebec's 12 real estate boards and their 14,000 agents and brokers. Its mission is to promote and protect the interests of Quebec's real estate industry so that the boards and their members can successfully meet their business objectives.

Contact Information

  • Quebec Federation of Real Estate Boards
    Chantal de Repentigny, Assistant Director,
    Communications, Industry Relations and Legal Affairs
    514-762-0212, ext. 130