Quebec City Real Estate Sales Plunge 18% as Historic Property Shortage Deepens
Event summary
- Quebec City CMA recorded 522 residential transactions in January 2026, down 18% YoY across all property types
- Property supply hit record lows for 24 consecutive months, with single-family homes (-17%) and plexes (-6%) driving the shortage
- Median prices surged 12% for single-family homes, 15% for condos, and 9% for plexes due to tight supply
- Overbidding declined slightly but remained high at nearly 30% of properties selling above asking price
- Average days on market stayed under two months across all categories
The big picture
The Quebec City market exemplifies Canada's broader housing crisis, where supply constraints are outpacing demand even with stabilized interest rates. The 18% sales decline represents the most severe contraction since 2023, with inventory levels setting new record lows. This dynamic is creating a seller's market where prices continue upward despite affordability challenges. The situation raises questions about long-term market sustainability and potential policy interventions.
What we're watching
- Supply Constraints
- How the 24-month supply decline will affect price elasticity in 2026...
- Affordability Crisis
- Whether rising prices will trigger demand destruction despite stable interest rates...
- Geographic Disparities
- The pace at which regional sales declines (South Shore -31%, Quebec City Agglomeration -15%) will diverge...
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