It may come as a surprise to some, but Quebec is now leading the Canadian real estate market. In some cities like Toronto, home sales dropped dramatically – but not in Quebec. Both sales and prices are growing in the city, and it’s not looking like they are slowing down any time soon. Because of this development in the province’s housing market, the landscape of Canada real estate is seeing a significant transformation.
How Montreal’s Housing Market Differs From Other Canadian Cities
There are major structural differences in Montreal’s real estate market that distinguish it from other Canadian cities. First of all, the dominant housing type involves low-rise multiplexes instead of larger family homes. On top of that, there are many more renters than there are homeowners in the city. Therefore, there is an increased demand for condos, apartments, and other smaller living quarters than can be seen in other Canada real estate markets.
Living in Montreal and other areas in Quebec is comparably less expensive than residing in other large Canadian cities. These low prices have more room for appreciation than in Toronto, for example. Young people are currently taking advantage of these housing prices; they’re moving to Quebec’s large cities in droves. That has made Quebec one of the most interesting Canada real estate markets this year.
Rising Interest Rates
A new regulation, called the stress test, has significantly raised interest rates on mortgages. Higher federally mandated interest rates mean that fewer people living in Quebec qualify for mortgages. This has spurred demand for cheaper housing, which investors are now exploring in 2019. These developments are leading to exciting new changes within the Canada real estate market, and there’s no doubt that Quebec is taking the lead.
However, just because less expensive housing is more in demand doesn’t mean that house prices won’t continue to rise. It is predicted that the price of homes will increase in 2019 more than it did the previous years. Home prices have steadily grown by around 2.5 percent. Many experts expect that the price hike will start to level off by 2020, perhaps making Quebec a long-term top choice for young people looking for cities with good employment opportunities, public transport, and other urban requirements.
More Disposable Income
As the millennial population ages, there has also been an increase in disposable income. This large generation is starting to be able to afford more not only in terms of goods but also when it comes to housing, which is having a very real effect on the Canada real estate market. However, it remains to be seen how these changes will play out in the long run.
Investors, buyers, and sellers alike are all keeping their eyes on the Canada real estate market, particularly Quebec’s housing market. As more people moving into the city become interested in buying homes and their home preferences continue to shift, more changes to the market can be expected.