I have the impression that the news is abusing steroids. Between information about the capture of the Capitol and another about the curfew imposed on Quebecers, my ear picked up astonishing data on the real estate market.
Somewhere in the Laurentians, house price increases of some 50% were reported!
Huge ! The growth in real estate values seems limitless. There is almost nowhere where quarterly price increases do not exceed 10%. In several places, they reach more than 20%! This frenzy has awakened markets that were believed to be forever in a coma, such as Shawinigan, which rose 20.4% at the end of last year.
Prices are exploding everywhere, with one notable exception: Quebec City and its neighbor opposite, Lévis. It’s frankly cushy over there. In the last quarter of 2020, the price of single-family homes rose by … 3.6% and 3.3% respectively.
It’s been going on for a long time
These figures come from the research firm JLR, whose database consists of notarial acts. These are therefore the prices paid, and not those displayed by the sellers. The real deal, what.
Normally, increases of more than 3% would be described as “robust”. But in comparison to what we see elsewhere, real estate in Quebec seems amorphous.
In nearby Portneuf, house prices climbed more than 21% in the fourth quarter. In Bellechasse, on the South Shore, there were increases of over 13% during the same period. Montmagny: 68%!
Maybe Quebec is catching its breath, you think. Not even ! This lack of vigor is confirmed quarter after quarter. Throughout 2020, homeowners in the region saw their home value increase by 2.8% compared to 2019.
Going back further, we still see the same stagnation. The median price of homes in the capital fell from $ 256,000 in the last quarter of 2015 to $ 285,000 at the end of last year, according to the JLR database. This represents an increase of 11% in five years.
Quebec caught up by the regions
In the Drummondville RCM, far from the influence of Montreal, the prices of single-family homes have increased by 16.8% in the last three months of 2020 alone. The median price: $ 230,000
In the MRC de Francheville, which includes Trois-Rivières, houses appreciated by nearly 20% between October and December. The median price: $ 200,000.
Many regions have seen the value of transactions explode due to increased demand for second homes from people in the greater Montreal area (where prices are steadily rising).
In the MRC de Joliette, the median price of single-family homes climbed 27% at the end of last year, reaching $ 267,000.
In the Laurentians, the increases are in the same waters. A little north of Saint-Jérôme, in the Les-Pays-d’en-Haut MRC, the median price reached $ 325,000.
Catching up regions
In the condominium market, which represents a third of real estate transactions in the Old Capital, it is even worse. Since 2015, the median price of units has fallen in Bonhomme country, the result of excessive housing starts.
According to Joanie Fontaine, economist at JLR, the values of real estate in the regions are gradually joining those of Quebec. If the trend continues, but we cannot bet on it, a citizen of Quebec who would like to sell his house to settle in the vicinity of Victoriaville, Berthierville or Valleyfield would not gain by the exchange.
And as soon as he gets too close to Montreal, he’ll find the bite difficult to swallow!
As for Montrealers who would like to settle in Quebec, they will do a hell of a good deal.