According to a recent Edge Realty report, Quebec’s real estate market in the first quarter of 2024 is, overall, showing positive activity with rising sales and relatively stable price increases.
Sales
In the first quarter of 2024, Quebec experienced a significant increase in real estate sales. Sales activity rose by 10.1% compared to the previous quarter, making it a notable surge. On a year-over-year basis, the increase was even more pronounced, with sales climbing by 22.1%.
Listings
The number of new listings in Quebec’s real estate market also saw an uptick in Q1 2024. There was a 3.6% increase in new listings from the last quarter. Year-over-year, the increase was more substantial, at 24.8%.
Active listings grew significantly, as well, with a 21.0% increase from the previous quarter. Year-over-year, active listings increased by 8.9%.
Prices
Home prices in Quebec saw a slight increase of 0.2% from the previous quarter. On a year-over-year basis, prices rose more noticeably, by 4.9%.
Under Construction
The number of properties under construction decreased by 3.4% from the last quarter, for a slight slowdown in new development activity. This decline is more pronounced on the year-over-year basis, with a 13.6% decrease.
Months of Inventory
The months of inventory decreased slightly, from 5.5 months in Q4 2023 to 5.3 months in Q1 2024, as homes are selling more quickly than are being listed.
Sales-to-New Listings Ratio
The sales-to-new listings ratio increased from 59.7% in Q4 2023 to 65.0% in Q1 2024, indicating a stronger demand relative to the supply of new listings.
Other Economic Indicators
Population
Quebec’s population grew by 0.4% quarter-over-quarter and 2.5% year-over-year.
Unemployment Rate
The unemployment rate in Quebec increased slightly from 4.7% in Q4 2023 to 5.0% in Q1 2024. This rise in unemployment may signal some economic challenges but remains relatively low; Canada’s unemployment rate was higher, at 6.1% in April 2024.
Mortgage Arrears
Mortgage arrears, although rising from 0.13% to 0.16% over the same period, showed an increase in homeowners experiencing financial difficulties. Although the increase is slight, it is a concerning indicator, and one that is being experienced across Canada.
The Quebec Professional Association of Real Estate Brokers also noted the strong first-quarter results in 2024 for Quebec. This was the first quarter since 2021 to see a double-digit rise in sales. This trend was seen in all census metro areas, except Gatineau and Trois-Rivières.
However, it is important to note that sales still remained slightly below the historical average for this period, and the slight rise in unemployment and mortgage arrears will need to be monitored.