May 31, 2017 - The Quebec Federation of Real Estate Boards (FCIQ) has revised its forecasts for 2017. Last January, it expected sales to fall by 7%, while it is now anticipating a 2% rise in sales in Québec, compared to 2016. This turnaround is due to three factors: strong job creation, a large increase in net immigration and consumer confidence.
The Centris system of real estate brokers expects that in Quebec, some 80,000 sales will be completed in 2017. This would be the best year since 2010, the FCIQ points out. The price of properties will also increase this year, including the condo prices, which will reach over $ 247,000 in the Montreal area.-At least for half the sales-. This would be a 3% increase compared to the median price posted in 2016.
Co-ownerships have been buoyant since the beginning of the year. After the first four months of operations in 2017, sales in this residential market segment were up 10% in Quebec. Those of single-family homes grew only 2%, while “plex” sales have remained been steady, says the FCIQ. In light of all this new information, it appears that "the mortgage tightening”, introduced last fall, did not weigh as heavily as we would have believed on first-time buyers," says Paul Cardinal, Market analyst at the FCIQ.
This is explained by an increase in demand from experienced buyers, which more than offset the decline in the number of first time homebuyers. "This is what reveals the activity by price range, especially in the Montreal market", details the FCIQ.
While the province has been performing well since the beginning of the year, it owes it to the Montreal Area, which boasts the largest share of jobs created since January 2016. The FCIQ forecasts that 41,500 transactions will be concluded in the Greater Montréal Area- GMA(region Métropolitaine de Montreal-RMR) in 2017, 4% more than in 2016. "This would be the best year in terms of sales since 2010," concludes the FCIQ.
By François G. Cellier, for Condolegal.com
Montreal, May 31, 2017