Affordability in Quebec Real Estate

While residential property prices have increased across Quebec in recent years, some regions have seen prices skyrocket. Yet, the pace of household income growth has not been uniform across all regions. As a result, the ability to purchase a home has deteriorated more sharply in some markets than in others.

Which regions are the most affordable when it comes to buying a single-family home? Here is our assessment of recent trends and developments over the past ten years, including an overview of prices, down payments, and monthly payments

DOWN PAYMENTS: A MAJOR OBSTACLE

Saving for a down payment is now considered one of the biggest hurdles to purchasing a property. Beyond the general rise in prices in recent years across Quebec, some regions have seen even sharper increases.

Moreover, the median price for a single-family home varies considerably across regions.

Montreal $790,000

Laval $601,000

Quebec Centre $353,000

In addition to price differences, federal mortgage rules

also determine the required minimum down payment

based on the property’s purchase price:

1. $500,000 or less: 5% of the purchase price

2. Between $500,000 and $1.5 million: 5% of the

first $500,000 + 10% of the remaining amount

3. $1.5 million or more: 20% of the purchase price.

When the federal mortgage rules came into effect

in February 2016, about 5% of single-family homes in

Quebec sold for more than $500,000.

Today, nearly half of all properties sell above that threshold, as prices

have soared since the pandemic.

The situation varies greatly across regions. The Island of Montreal and surrounding areas have the highest share of transactions over $500,000 (50% to 92%), followed by Outaouais (44%), Estrie (40%), and the Quebec City area (35%). Elsewhere in the province, 15% or less of single-family homes sell for more than $500,000.

Interesting information from your Broker in Montreal

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