L'ÎLE-DES-SŒURS, QC, July 3, 2015 /CNW Telbec/ - The Québec Federation of Real Estate Boards (QFREB) has just raised its forecasts for the province's 2015 residential real estate market. The QFREB now anticipates a 6 per cent increase in the number of transactions concluded through the Centris® system in Québec, after initially predicting an increase of 2 per cent.

"The surprise cut in interest rates at the start of the year and the stronger-than-expected recovery in terms of employment are the two main factors that explain the boost in activity compared to what we had originally predicted for 2015," explained Paul Cardinal, Manager of the QFREB's Market Analysis Department.

Here is an overview of the new forecasts for 2015 and predictions for 2016.

Province: Heading Towards the Largest Increase in Sales Since 2007

  • The 6 per cent increase in sales predicted for 2015 will translate into some 75,000 transactions across the province, which is a three-year high. In 2016, we expect there to be 74,500 transactions in Québec, a slight decrease of 1 per cent.
  • The median price of single-family homes will increase by 1 per cent across the province in 2015 and 2016, to reach $230,000 and $232,500, respectively.

Montréal Area: Residential Sales to Increase by 6 Per Cent

  • In the Montréal Census Metropolitan Area (CMA), the QFREB expects residential sales to increase by 6 per cent in 2015, followed by a small decrease of 1 per cent in 2016.
  • The median price of single-family homes will increase by 2 per cent in 2015 to reach $288,000; then, in 2016, the median price will increase by another 2 per cent to reach $293,000.
  • As for condominiums, the increase in median price should be 3 per cent in 2015 and 1 per cent in 2016 to reach $236,000 and $238,000, respectively, despite the fact that market conditions give buyers the upper hand.

Québec City Area: Prices Will Resume the Path of Growth

  • For the Québec City CMA, we are raising our forecast for residential sales to 7 per cent this year, with 6,900 transactions expected. Sales should then remain stable in 2016.
  • After being flat last year, the median price of single-family homes will resume a path of growth and will increase from $245,000 in 2014 to $248,000 in 2015 (+1 per cent) and to $251,000 in 2016 (+1 per cent).
  • For condominiums, after decreasing slightly (-1 per cent) last year, the median price will stabilize at $199,000 in 2015, before it too resumes a path of growth in 2016 (+1 per cent).

For more information, read the most recent Word from the Economist published by the QFREB.

 

SOURCE Fédération des chambres immobilières du Québec

Copyright 2015 Canada NewsWire