Quebec Residential Real Estate Holds Promise for 2012
Although there is plenty of forecasting for 2012 that may cause concern, the residential real estate market in Quebec is expected to build on gains seen in 2011.2011, the real estate market actually fared better than the QFREB had predicted. The year started off a little shakily, but gained momentum in Q4, which is expected to spill over into 2012.
“The QFREB had forecast a 4 per cent decrease in residential sales across the province in 2011, but the year concluded on a more positive note with a slight 3 per cent drop," said Paul Cardinal, Manager of the QFREB's Market Analysis Department. "Similar to 2010, the Québec resale market had two distinct phases. However, the pattern was reversed from 2010 in that the first four months of 2011 were marked by a decrease in sales and were then followed by a series of seven consecutive monthly increases beginning in June," he added.
The only property type to experience a rise in sales was the condominium market, which has seen a broad based spike in activity across the country.
In 2012, the condo market is expected to continue to be popular, especially amongst first time homebuyers and empty nesters.
But, looking ahead to 2012, buoyed in part by the continuation of low interest rates, prices and sales are expected to increase, although at a slower rate.
"The year 2012 will begin in the same manner, which should translate into very low mortgage rates," said Paul Cardinal, manager of the Market Analysis Department at QFREB. "Home buyers will therefore continue to benefit from exceptionally low borrowing costs, which will help to stimulate the number of transactions," he added.
With the global economic uncertainty continuing to rage, investment dollars that may have originally been destined for the US, have now arrived in more stable Canada, with much of that capital landing in Quebec, which is another reason why the market is expected to continue to grow through 2012.
QFREB says that, in addition to enjoying low interest rates, that there has been positive growth from a demographic standpoint, which will assist in propping the market up as well. 2011 saw the biggest gain in population since 1988.