- Hélène Bégin, Principal Economist, and Maëlle Boulais-Préseault, Economist
Quebec’s Housing Market Will Continue to Correct in 2023 Before Likely Rebounding Next Year
Quebec’s housing market will continue to slide this year. Housing starts were off 15.8% in 2022 and are projected to fall about 20% in 2023. With household borrowing capacity way down, demand for new homes is softening. And despite the rental apartment shortage, developers are postponing or cancelling some projects because they’re having trouble getting financing due to high interest rates. Existing home sales are expected to drop by 25% in 2023. That’s about on par with last year’s decline and close to a twenty‑year low. The average home price in Quebec is down 8.1% from its April 2022 peak. That figure will likely hit 17% by the end of 2023. But the housing market should gradually rebound next year. Between the ongoing price correction and future mortgage rate cuts, affordability should improve. As existing home sales pick up, prices, housing starts and renovation spending should slowly recover in 2024.
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