Provincial Real Estate Sales Break Records in January

Québec’s provincial real estate market set a new record for sales in January, with condominiums leading the way. Condominium MLS® sales increased by 82 per cent in January 2010 compared to the same month last year, the worst month of the recession, and by 20 per cent compared to the peak month of January 2007, according to the Québec Federation of Real Estate Boards (QFREB).

In terms of all MLS® residential sales, 5,255 sales took place in the province of Québec in January 2010, a 57 per cent increase compared to January 2009 and a 1 per cent increase compared to the record-setting month of January 2007.

“The market was very active at the start of the year, particularly for condominiums,” said Michel Beauséjour, FCA, Chief Executive Officer of the QFREB. “The strength of the condominium market is mainly due to the vitality of the Montréal Metropolitan Area’s real estate market, where close to 80 per cent of the province’s condominium sales took place. The significant increase in condominium sales in January suggests that first-time buyers were active in the real estate market, and many wanted to take advantage of the low interest rates,” he added.

January 2010 was also an active month for single-family homes and plexes. The number of single-family homes sold in Québec increased by 52 per cent compared to January 2009 and by 6 per cent compared to January 2008. Plexes posted a 39 per cent increase in sales compared to January 2009 and a 2 per cent increase compared to January 2008.

In terms of prices, the median price of single-family homes increased from $186,000 in January 2009 to $200,000 in January 2010, an increase of 8 per cent. The median price of condominiums across the province reached $190,000, a 14 per cent increase compared to January 2009. Plexes registered the largest increase in median price (+23 per cent), reaching $297,000.

“In January 2010, 59 per cent of plex sales in the province took place in the Montréal area, compared to 52 per cent in January 2009. This explains the sharp increase in the median price of plexes in Québec,” explained Mr. Beauséjour. “The steady increase in price shows that real estate continues to be a good investment.”

As at January 31, 2010, the number of active listings in Québec decreased by 13 per cent in comparison with the same date last year, bringing the inventory of properties for sale to a level that is similar to that of January 2008.

Most Metropolitan Areas Started The Year Off Strong

The vitality of Québec’s real estate market translated into increased sales in most of the province’s metropolitan areas in January 2010. The Montréal area posted the strongest growth, as sales increased by 70 per cent compared to January 2009 and by 7 per cent compared to January 2008. In terms of prices, condominiums in the Montréal area posted the largest increase (+12 per cent), with a median price of $201,500. The median price of single-family homes reached $235,000 in January 2010, an increase of 4 per cent, while the median price of plexes increased by 7 per cent, reaching $365,000.

The real estate market in Saguenay area was also very active in January 2010. The number of transactions increased by 67 per cent compared to the same month last year, and by 19 per cent compared to January 2008. Property prices also increased in January 2010; the median price of single-family homes grew by 2 per cent compared to January 2009, to reach $147,000.

The Québec City area posted a 23 per cent increase in sales in January 2010 compared to January 2009 and a 3 per cent increase compared to January 2008. In terms of prices, all property categories registered a significant increase in median price in January 2010. Half of single-family home sales were at a price greater than $208,250, up 11 per cent compared to last January. The median price of condominiums increased by 20 per cent to reach $174,540, while that of plexes increased by 24 per cent to reach $265,000.

The Gatineau area also turned in a solid performance in January 2010 with a 38 per cent increase in sales compared to January 2009 and a 6 per cent increase compared to January 2008. In terms of prices, the median price of single-family homes reached $199,000 in January 2010, an 8 per cent increase compared to the same period last year.

Sales in the Sherbrooke area increased by 13 per cent in January 2010 compared to January 2009. Despite the recession, sales in this area remained stable in January 2009, which explains why sales were also up by 13 per cent in January 2010 compared to January 2008. In terms of prices, the median price of single-family homes reached $169,000 in January 2010, a 6 per cent increase compared to January 2009.

The Trois-Rivières area was the only area to register a decrease in sales in January 2010, as the number of transactions fell by 10 per cent compared to January 2009. However, Trois-Rivières was the only area in the province that registered an increase in sales in January 2009. Despite this drop in sales, property prices continued to increase. The median price of single-family homes grew by 7 per cent in January 2010 compared to the same month in 2009, reaching $137,000.