- Widespread sales concluded at the asking price in Quebec
- Negotiation type greatly impacts selling times
- With few properties on the market, prices are holding up
L’Île-des-Sœurs, June 9, 2023 – As part of its Forum immobilier résidentiel conference, the Quebec Professional Association of Real Estate Brokers (QPAREB) presented an analysis of price negotiation dynamics for the residential real estate market in the province of Quebec.
While the meteoric rise in interest rates has resulted in a sharp drop in sales, the number of properties available for sale on the market has risen only very moderately. Active listings are still well below the historical average. However, the decrease in the number of buyers on the market has had a direct impact on the dynamics of price negotiations for single-family homes sold in Quebec.
Properties sold at the asking price have gained ground in the last year and now represent nearly 7 out of 10 transactions, a sign that the market is normalizing. Sales at negotiated below-asking prices are also more numerous, while the number of sales above the asking price is significantly lower than in the spring of 2022.
“All of this demonstrates the resilience of the market. It is encouraging to see a normalization of the market with an increase in sales concluded at the asking price. This is a healthy phenomenon, since multiple offers often lead to irrational decisions by buyers and abusive ones by sellers,” explains Charles Brant, QPAREB Market Analysis Director.
The asking price greatly affects the result of the sale and causes the time to sell a property to fluctuate. A property listed at an overvalued price takes, on average, almost three months before finding a buyer. Conversely, selling times are always compressed to their minimum when a property is sold after a process of multiple offers leading to overbidding.
“It is reassuring to see that sales at the asking price have more reasonable transaction times. It shows that these sales take place with the iterations and necessary conditions for them to be carried out according to accepted practices and to the satisfaction of both the seller and the buyer,” notes Charles Brant, QPAREB Market Analysis Director.
“As a result of these changes in price negotiations, there is only a 5 per cent decline in median prices from last year’s April peak. It is therefore possible to say that most of the price correction is now behind us. In the coming months, the Quebec real estate market will continue to stabilize in terms of prices, yet not return to balanced market conditions due to an insufficient number of properties for sale,” concludes Charles Brant, QPAREB Market Analysis Director.
About the Quebec Professional Association of Real Estate Brokers
The Quebec Professional Association of Real Estate Brokers (QPAREB) is a non-profit association that brings together more than 14,000 real estate brokers and agencies. It is responsible for promoting and defending their interests while taking into account the issues facing the profession and the various professional and regional realities of its members. The QPAREB is also an important player in many real estate dossiers, including the implementation of measures that promote homeownership. The Association reports on Quebec’s residential real estate market statistics, provides training, tools and services relating to real estate, and facilitates the collection, dissemination, and exchange of information. The QPAREB has its head office in Quebec City, administrative offices in Montreal and a regional office in Saguenay. It has two subsidiaries: Société Centris inc. and the Collège de l’immobilier du Québec. Follow its activities at qpareb.ca or via its social media pages: Facebook, LinkedIn, Twitter and Instagram.
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