L'ÎLE-DES-SŒURS, QC, March 30, 2017 /CNW Telbec/ - The Québec Federation of Real Estate Boards (QFREB) has just published a study that examines the resale market for vacation properties1 in Québec, specifically in the rural areas of the Capitale-Nationale, Estrie, Lanaudière, Laurentides, Montérégie and Outaouais administrative regions. According to the QFREB, 3,435 vacation properties were sold in Québec in 2016, an 11 per cent increase compared to 2015.
"2016 was a prolific year for the vacation property market," said Paul Cardinal, Manager of the Market Analysis Department at the Québec Federation of Real Estate Boards. "While residential sales across the province grew by 5 per cent, sales of vacation properties increased by 11 per cent. This market segment should continue to grow in 2017, but at a slower pace than the previous two years. We are forecasting sales growth of around 5 per cent for vacation properties," he added.
In 2016, 3,024 single-family vacation properties were sold, an increase of 13 per cent. However, sales of condominium vacation properties experienced a more difficult year with 411 units being sold, a 3 per cent decrease compared to 2015.
The Laurentides region dominated the vacation property market with the largest number of sales (1,299 transactions). However, Capitale-Nationale was the best-performing region in 2016, as sales of vacation properties increased by 25 per cent.
Vacation properties come at a price
Vacation properties, whether single-family homes or condominiums, were sold, on average, higher than conventional properties in each of the administrative regions studied. The biggest price difference was in Montérégie, where the average selling price of a vacation home was 78 per cent higher than a conventional home in 2016. It was also in Montérégie where the average price for a single-family vacation property registered the highest growth in 2016, increasing by 17 per cent compared to the previous year.
Longer selling times
Selling times for vacation properties remained longer than that of conventional properties in each of the administrative regions studied. Single-family vacation properties had to wait 199 days on average before finding a buyer, compared to 158 days for conventional properties. The same effect was also felt for condominium vacation properties: it took 311 days on average to sell a property versus 208 days for a conventional condominium in the same regions.
An exceptional year for the high-end market
The luxury vacation property market has been the engine of growth in most of the regions studied. In fact, sales of single-family vacation properties over $500,000 increased by 28 per cent compared to 12 per cent for those under $500,000. Only the Capitale-Nationale and Outaouais regions saw the number of single-family sales over $500,000 decrease in 2016 compared to the previous year.
As for high-end condominium vacation properties, most were in the Laurentides region, with 25 of the 26 condominiums selling for more than $500,000 in 2016.
"The high level of job creation and the high level of consumer confidence partly explain the great strength of this market segment. Another element that helps explain the strong growth in the 2016 vacation property market is that the Canadian dollar remained weak throughout the year, which may have encouraged more foreign buyers to invest here. In January, the loonie reached its lowest level in the last five years relative to the U.S. dollar, the euro and the Chinese yuan," added Paul Cardinal.
For more information, read the QFREB's study.
About the Québec Federation of Real Estate Boards
The Québec Federation of Real Estate Boards is a non-profit organization composed of Québec's 12 real estate boards and the close to 13,000 real estate brokers who are their members. Its mission is to support Québec's real estate boards in order to defend, protect and promote the interests of real estate brokers through the provision of services in the areas of professional practices, public affairs and market analysis. The QFREB is guided by an approach that is centred on collaboration and resource sharing.
1 The QFREB defines a vacation property as a single-family property or condominium that can be lived in year-round and located outside of large urban centres. Its characteristics include being located close to nature, ski hills, a lake, a mountain, a golf course, etc. Properties that are only occupied seasonally are excluded. Our definition of a vacation property does not distinguish between properties that are occupied as a primary or a secondary residence.
Jacynthe Alain, Assistant Manager, Communications and Public Relations, Québec Federation of Real Estate Boards, 514-647-8249, [email protected]
SOURCE Québec Federation of Real Estate Boards