Quebec: Asking Price Above Selling Price Becoming More Common
by Yvonne von Jena | May 30, 2018
The Québec Federation of Real Estate Boards (QFREB) has published an interesting study that shows the proportion of residential properties that sold for more than the asking price in Quebec and how it has risen over the past year in each of the province’s six census metropolitan areas (CMAs) – i.e. Montréal, Québec City, Gatineau, Sherbrooke, Trois-Revières and Saguenay.
Says the board, Québec’s residential real estate market has had a good start to the year in terms of price pressure. Sales are up and supply of properties for sale is down. “In this context, we see increased pressure on prices and more frequent situations of bidding wars,” explained Paul Cardinal, Manager of the QFREB’s Market Analysis Department. The following chart (from the QFREB by the Centris System) shows how this has grown in each CMA over the year:
For properties that sold above the asking price, the QFREB also calculated the difference between the sale price and the asking price, in dollars and as a percentage, in each of the province’s CMAs. The percentage differences do not seem particularly significant from one region to another: they vary from 2.5% in Gatineau to 3.7% in Québec City. However, when measured in dollars, the Montréal CMA registered the largest difference, as buyers who were engaged in bidding wars paid an average of $15,072 more than the asking price. This was followed by the Québec City and Sherbrooke CMAs, where buyers paid an average of $10,030 and $7,958, respectively, above the asking price.
The same way that this is not evenly distributed by CMA, it’s not evenly distributed across property types. For example, plexes (small rental properties with two to five dwellings) generally sold for more than the asking price. This was particularly the case in the Montréal, Québec City, Sherbrooke and Trois-Rivières CMAs. The Gatineau area was the exception, as sales above the asking price were most prevalent among single-family homes. Finally, in some central neighbourhoods, plexes were so popular that the selling price of more than one quarter of transactions exceeded the asking price. This was particularly the case in Verdun/Île-des-Soeurs, Rosemont/La Petite-Patrie, South West and Le Plateau-Mont-Royal.
For single-family homes, several municipalities in the West Island stood out, such as:
As for condominiums, the proportion of properties that sold above the asking price was lower, because scarcity is lower on the condominium market as compared to single-family homes. But despite this, areas such as Le Plateau-Mont-Royal, Rosemont/La Petite-Patrie, Villeray/Saint-Michel/Parc Extension, Outremont and South West are worth pointing out, with proportions ranging from 12 to 16%.