Brokers in Quebec may have to temper their cheer for the New Year as economic conditions are likely to hold back the resale market in 2013, according to CMHC’s latest report.
“The more moderate trend in economic conditions will restrict potential growth on the resale market,” the CMHC reported this week in its annual Housing Outlook Conference. “Transactions will rise by 2 per cent in both 2012 and 2013…overall, the market will be softer.”
The fundamental, while in moderation, will support the province’s housing market in 2013 as demand slows down, according to CMHC.
“The economic slowdown and the easing of the resale market will reduce demand for new homes this year and next year,” organization reported.
With a return to more balanced conditions, the growth in prices on the resale market will continue to moderate in 2012 and 2013 (with increases of 3.9 per cent in 2012 and 0.8 per cent in 2013), and the average price should attain $271,800 this year and $274,100 next year.
As with other regions, condominium sales figured prominently in Quebec this year although CMHC noted that buyers if most units tended to be investors rather than homeowners.
Residential sales posted a greater gain in the Northern Suburbs. The Les Rivières and Beauport zones registered significant increases in single-family home sales.
In the case of condominiums, the Beauport and western South Shore zones stood out. At the same time, the supply of condominiums rose considerably, such that market conditions still favoured sellers in only three zones: the western part of the South Shore, Charlesbourg and Les Rivières.