Quebec Federation of Real Estate Boards

Quebec Federation of Real Estate Boards

June 14, 2010 08:30 ET

The Province's Real Estate Market Slowed in May 2010

ÎLE-DES-SOEURS, QUEBEC--(Marketwire - June 14, 2010) -

Important Note

To view MLS® statistics charts for a specific metropolitan area of the province, click on the name of the area in this press release.

There were 8,014 MLS® sales transactions in the province of Québec in May 2010, an 8 per cent decrease compared to May 2009, according to the Québec Federation of Real Estate Boards (QFREB).

"It's not unexpected to see a slowdown in the real estate market given that the market was extremely active the last few months with consumers getting back into the market following the recession," said Michel Beausejour, FCA, Chief Executive Officer of the GMREB.

"Aside from experiencing some pent up demand from consumers, others were buying their properties earlier than planned, wanting to avoid an increase in mortgage interest rates. Plus, we're heading into the summer months when the real estate market tends to naturally slow down," he added.

In terms of property categories, condominiums registered the smallest decrease in sales in May 2010 compared to May 2009, dropping by 7 per cent. Sales of single-family homes decreased by 8 per cent across the province, while plex sales decreased by 12 per cent.

Despite the sales decrease, property prices continued to increase across Québec in May 2010. The median price of single-family homes increased from $199,700 in May 2009 to $215,000 in May 2010, an 8 per cent increase. The median price of condominiums increased by 10 per cent to reach $198,699, while that of plexes increased by 14 per cent to reach $325,000.

As at May 31, 2010, the number of active listings on the provincial MLS® system decreased by 8 per cent in comparison with the same date last year.

"The decrease in active listings across the province in May 2010 represents the ninth consecutive monthly decrease. However, the decrease in May was smaller than those of previous months and the inventory of properties for sale still provides consumers with a good choice, one that is similar to that of May 2008," said Michel Beauséjour.

  Sales Median Price (single-family)
May 2010 Variation* 2010 Variation*
Province of Québec 8,014 -8% $215 000 8%
         
Metropolitan Areas        
  Gatineau   464 -3% $212,000 5%
  Montréal   4,403 -8% $257,000 8%
  Québec City   628 -18% $229,000 18%
  Saguenay   144 -23% $161,000 7%
  Sherbrooke   150 -25% $186,250 13%
  Trois-Rivières   87 -30% $146,000 6%
*Variation compared to the same month last year    
Source: QFREB by Centris®    

Sales Decrease, But Prices Increase in all Metropolitan Areas

Trends seen across the province were reflected in the metropolitan areas, as all areas posted a decrease in sales but an increase in prices in May 2010. The smallest decrease in sales was in the Gatineau Metropolitan Area, as the 464 sales transactions in this area in May 2010 represent only a slight decrease of 3 per cent compared to May of last year. In terms of prices, half of all single-family homes sold were sold at a price that is higher than $212,000, an increase of 5 per cent. The median price of condominiums increased by 10 per cent to reach $155,000, while that of plexes increased by 1 per cent to reach $237,500.

The Montréal area registered the same sales decrease as the province, meaning 8 per cent fewer sales in May 2010 compared to May 2009. Prices continued to increase however, as the median price of single-family homes increased by 8 per cent to reach $257,000. The median price of condominiums increased by 7 per cent in May 2010 compared to May 2009 to reach $207,000, while that of plexes increased by 11 per cent to reach $390,000.

There were 628 sales transactions in the Québec City Metropolitan Area in May 2010, an 18 per cent decrease compared to May 2009. Despite this decrease, the median price of single-family homes in the Québec City area increased by 18 per cent to reach $229,000. Condominiums registered an 18 per cent increase in median price to reach $185,000, while that of plexes increased by 14 per cent to reach $247,500.

With 144 sales transactions in May 2010 compared to 187 transactions in May 2009, the Saguenay area posted a 23 per cent decrease in sales. As for prices, the median price of single-family homes increased by 7 per cent compared to May 2009, reaching $161,000.

In the Sherbrooke Metropolitan Area, sales fell by 25 per cent in May 2010 compared to May 2009. Sales of single-family homes, which decreased by 37 per cent, are primarily responsible for this decrease. Prices held strong however, as the median price of single-family homes increased by 13 per cent in May 2010 to reach $186,250. Sherbrooke was the only metropolitan area in the province with balanced market conditions in May 2010.

Finally, with 87 sales transactions, the Trois-Rivières area registered a 30 per cent decrease in sales in May 2010 compared to May 2009. In terms of prices, half of the single-family homes sold in May 2010 were sold at a price that is higher than $146,000, a 6 per cent increase compared to the same month last year.

More Information on centris.ca™

For more information, including quarterly statistics for the province of Québec, as well as its municipalities and regions, visit centris.ca™, Québec's real estate industry website.

About the Québec Federation of Real Estate Boards

The Québec Federation of Real Estate Boards is a non-profit organization composed of Québec's 12 real estate boards as associate members and the 15,000 real estate agents and brokers who are affiliated members. Its mission is to promote and protect the interests of Québec'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, extension 130
    Toll-free: 1-866-882-0212, extension 130
    chantal.derepentigny@fciq.ca