Condo Oversupply: The Situation is Improving!
According to the Québec Federation of Real Estate Boards (QFREB), although current market conditions for condominiums still show an oversupply, several indicators demonstrate an improvement on the resale market. In its most recent study, the QFREB provides an update on the supply of condominiums on the resale market in the metropolitan areas of Gatineau, Montréal and Québec City.
Active Listings: An End to the Upward Trend
- This past March marked the first decrease in active condominium listings in Québec since July 2010, after 67 consecutive monthly increases.
- The supply of condominiums has continued to decrease steadily since March and, cumulatively for 2016, active condo listings have dropped by 3 per cent across Québec compared to the same period last year.
Condominium Sales are Gaining Strength
- After registering decreases from 2012 to 2014, condo sales across the province have essentially bounced back.
- Condominium sales increased by 3% in 2015 compared to 2014.
- From January to August 2016, condominium sales concluded through a real estate broker in Québec increased by 6 per cent compared to the same period in 2015.
Still No Upward Pressure on Prices
- Condo prices have been increasing at a very modest pace for more than three years now.
- The median price of condominiums across the province grew by only 4% from 2012 to 2015, with an annual change that ranged between 1% and 2%.
- Cumulatively for 2016, the median price of condominiums across Québec ($220,000) is unchanged compared to the same period last year. This result, however, hides a number of regional disparities: the median price of condominiums in the Montréal CMA ($237,890) increased slightly by 1% so far in 2016, while the Gatineau ($161,900) and Québec City ($190,000) markets registered respective decreases of 2% and 4%.
For all the details, read the study published by the Québec Federation of Real Estate Boards.