Why is this the Right Time to Invest in the Quebec Real Estate Market?

Right Time to Invest in the Quebec Real Estate Market

As a result of the growth in the Quebec real estate market, the province is increasingly becoming a sought-after location for investors as far as real estate is concerned. Brimming with a variety of multicultural cities, absolutely astounding natural landscapes, an ever-evolving tech scene and some of the most welcoming natives in the world, Quebec has positioned itself as a prime location in Canada. Although Quebec, Montreal in particular, is heavily inhabited by a constantly growing French population, it remains an excellent location to invest in for locals and foreign nationals on the prowl for opportunities to invest in Quebec properties, in addition to students and individuals awaiting their Canadian permanent residence.

This blog delves into various aspects of the Quebec real estate market and what makes it a hotspot for investment.

What Attracts Investors to Quebec Real Estate Market?

Investors to Quebec real estate market

Employment statistics in Quebec have made it an extremely attractive and desirable location, considering how it boasts of some of the lowest unemployment rates in the country, per Statistics Canada. Therefore, Quebec may appeal to those hoping to make a smart move to upgrade their professional lives. As far as personal lives are concerned, there is a seemingly perennial supply of museums, heritage sites, gardens, galleries and more, which may appeal to those looking to indulge in interesting activities as they recover from a long week of work and more.

Some Insights Related to the Quebec Housing Market

Quebec Housing Market

  • Property prices in Quebec are significantly lower than in provinces like British Columbia, where the average home price was $947,216 in June 2022.
  • On the other hand, the average home price in Quebec for June 2022 was $506,024. This tally has gone up by 12% compared to what it used to be in 2021. 
  • We can say the same for the cities of Montreal, as the average home sold price went up by 9%. 
  • Quebec City experienced an annual increase in the benchmark home price by 12%.

Factors to Consider Before Investing in the Quebec Real Estate Market

Factors to Consider Before Investing

These factors have a major impact on the Quebec real estate market:

  • Property Prices
    As per stats that the Canadian Real Estate Association released, property prices in Canada have been plummeting for the past two months after they reached a non-seasonally adjusted high of $816,720 in February, however, the chances of prices going as low as pre-pandemic levels remain unlikely. The heavy price drop triggered the Bank of Canada’s decision to raise its benchmark rate to counter inflation.
    This drop in property prices has prompted realtors in the Quebec housing market to part ways with their properties. Moreover, it has triggered them up for sale on the Quebec real estate market as potential returns on their investments seemingly slip through the cracks daily. Reacting to the same price drop, economists argue that this downturn could potentially be bigger than anything the country has experienced in over 40 years.
  • Costs Incurred while Acquisition and Maintenance of Properties
    There are several costs that prospective buyers need to consider before acquiring their dream home in the current Quebec housing market. However, laying claim to your property can be fairly simple, with some forethought, planning, and preparation. Knowledge of the intricate rules and regulations involved in covering costs is an absolute must before one can actually go on to invest in a Quebec property. Furthermore, figuring out a way to finance and move money efficiently to take care of these costs works to make the process that much easier.
    Buyers have to consider costs like appraisal fees, building inspection fees, property surveys, legal and notary fees. In addition, buyers are required to shell out money on several kinds of insurance, including mortgage loan insurance, title insurance and home insurance. Furthermore, buyers must pay taxes like Land Transfer Tax, Sales Tax and more.
  • Residency and Acquisition of Properties based on Citizenship and Nationality
    Prime Minister Justin Trudeau’s Government recently moved to bar foreign investors from buying up homes in Canada. Referring to it as an ‘affordability crisis,’ the liberal government banned non-Canadians from acquiring properties in the country for two years. However, refugees and international students awaiting their permanent residence are exempt from the same.
    The government justified this decision by declaring that they were trying to improve the conditions of supply and cost for Canadian nationals trying to acquire properties. Furthermore, the administration vowed to monitor the impact of foreign capital on housing costs. They asserted that their inspection results would subsequently influence their decision to strengthen or ease the current ban.
    The federal Liberal government also introduced a scheme to tax those who sell houses in less than a year after buying them. This tax was created to target ‘house flippers’, who obtain houses only to remodel and renovate them to put them back on the market, demanding a higher price from buyers for quick profits. 

Additionally, 

    • The government called on the Canada Mortgage and Housing Corporation to initiate the construction of 100,000 new housing units. 
    • They also ordered the corp. to set aside a hefty budget over the course of the next two years to develop 6,000 affordable housing units. 
    • Therefore, it is the perfect time to invest in houses for sale in Quebec for Canadian nationals and future Canadian permanent residents.

Housing Market in Montreal

Housing Market in Montreal

The Quebec Professional Association of Real Estate Brokers (QPAREB) recently released statistics regarding the residential real estate market in the Montreal Census Metropolitan Area (CMA) for June 2022. Their findings suggest that sales have significantly slowed down in the city. It also noted that although the market is currently tilted in favour of sellers, potential buyers could witness a drastic downturn in the trend of overbidding due to the abundance of properties available on the market. The number of houses for sale in Quebec has led to crowding in the housing inventory. 

Valuable Insights  

    • This profusion in the country and the Quebec housing market, in particular, is a first since the year 2015. 
    • Listings available on the market reached a high of 12,370 units, which comes in as a 15% increase from what the market witnessed in June 2021. 
    • The median price of single-family homes reached a peak of $570,000, which is a 12% increase in June 2021. 
    • The prices of single-family homes have experienced a $6,000 decrease from May 2022.
    • The median price of condominiums in the city experienced a 12% increase over the year, costing about ​​$365,000 in June 2021 and $410,000 in June 2022. 

It is interesting to note that the selling time for most properties has either stagnated or gone up since last year. Condominiums, however, seem to have gained speed. It previously took 35 days to sell condominiums in the Quebec Housing Market, which are now moving in 30 days.

Housing Market in Quebec City

Housing Market

The Quebec Professional Association of Real Estate Brokers (QPAREB) also shared the same statistics regarding the residential real estate market in the Quebec City Census Metropolitan Area (CMA). The real estate market in Quebec City has seemingly been thriving, unfettered by the rise that has been plaguing interest rates in the country. 

Buyers and sellers in the city managed to complete around 756 residential transactions in June 2022, while those transacting in June 2021 could only manage to complete 733. This marked the first set of gains in monthly sales in the last 13 months, breaking the downward spiral that the market had seemingly entered after June 2021.

    • The median price of single-family homes in Quebec City went up to $350,000 in June 2022, which is a 12% rise from what it used to be in June 2021; however, the rise has been slowing down since March 2022. 
    • Despite the stark rise in prices, the selling time for single-family homes has experienced a drastic reduction. The homes that took 50 days to sell back in June 2021 are now being sold in a matter of 30 days. 
    • The same can be said for condominiums in Quebec City. The price of the properties has certainly increased, going up to a median price of $239,950 in June 2022 from $207,500 in June 2021. 

In Conclusion

Rising property prices in Quebec could pose a challenge for first-time homeowners. However, this rise is also a telltale sign of consistent growth in the value of the properties that one may acquire, offering them a sense of security and ensuring definite returns on their investment, particularly in the Quebec real estate market

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FREQUENTLY ASKED QUESTION (FAQs)

Is there tax on real estate commission in Quebec?

Yes. You are required to pay taxes on real estate commission in Quebec. It includes two kinds of taxes, QST (provincial) and GST (federal) worth 9.975% and 5%, respectively, totalling 14.975%.

How much is a real estate broker license cost in Quebec?

The cost of a real estate broker license in Quebec depends upon the month in which you wish to start or resume your practice. For instance, for those wanting to start or resume their practice in April 2023 will only have to spend $574.08. However, those seeking a valid license for August will have to shell out $1,717.60.

What is required for a real estate license in Quebec?

Prospective real estate brokers who hope to practice the profession in the region of Quebec need to: successfully complete the mandatory training program in an educational institution recognized by OACIQ, pass the OACIQ certification examination, fill a consent form for the verification of their criminal record.

Can a buyer cancel a real estate contract in Quebec?

A real estate contract that has been previously agreed to and signed by the buyer and the seller can only be cancelled if both parties unanimously agree to the same. If consensus regarding the matter is reached, a written agreement of cancellation can be signed by both parties that would void their previous agreement. However, it is advisable to consult a notary before any document is signed.

Can Ontario real estate agents buy or sell a house in Quebec?

Real estate agents of one Province who wish to practice their profession in another Province need to complete all the necessary training, experience, examinations, and assessments recognized in that Province.

Vinayak Manoj Vinayak Manoj is an avid sports fan with a deep passion for the written word. If he is not on his desk, he is usually seen in the defensive third of a football pitch or is angling to get there, more often than not. As a journalist and writer, Vinayak has covered multiple beats, including entertainment and sports. He also moonlights as a Netflix addict, consuming content at odd hours in the night when he’s not busy creating content himself. His drugs of choice are crime thrillers and horror flicks.
Vinayak Manoj Vinayak Manoj is an avid sports fan with a deep passion for the written word. If he is not on his desk, he is usually seen in the defensive third of a football pitch or is angling to get there, more often than not. As a journalist and writer, Vinayak has covered multiple beats, including entertainment and sports. He also moonlights as a Netflix addict, consuming content at odd hours in the night when he’s not busy creating content himself. His drugs of choice are crime thrillers and horror flicks.