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Due to its size, Quebec is one of the most popular places to live in Canada. The province is Canada’s second largest in terms of population and land area, and housing is perennially in demand. We are the best place to find the most affordable Quebec mortgage rates. We work with several lending institutions to bring you discount rates, and we make it easy for you to find out about the housing market in Quebec and to access competitive interest rates. You can find everything you need to know about Quebec housing here, which makes us the top site online for home buyers who are interested in Quebec real estate. Read about Quebec’s housing market below, and choose the best rate to find out why so many Canadians trust us for the best mortgage interest rates in the province.
What Affects the Housing Market in Quebec?
To get an accurate understanding of the housing market in Quebec, we must first consider some of the basic elements that affect housing in the province. Although we could list several factors, these are the most influential:
• Economy — Quebec’s economy continues to trail that of the other provinces in Canada, with an estimated GDP growth of only about 1.5 percent in 2012. This will approach 2 percent in 2013, but the slow growth will influence immigration and wages, creating what will likely be a lower demand for housing in the short term than there was over the past few number of years. Unemployment remains above average following a sharp increase in the number of jobless individuals at the end of 2011. As of March 2012, the unemployment rate is hovering at right around 8 percent. Decreased manufacturing will be slightly offset by gains in the mining sector.
• Immigration — Even though the rate of births to Canadian citizens in Montreal has declined, the province still continues to experience a great deal of immigration. An estimated 45,000 people move to Quebec each year from all over the world, and all of these people need housing. Buying a home in the province today and taking advantage of low mortgage rates in Quebec is likely to be a great investment, as you will likely be able to sell in the years ahead to new residents.
• Fiscal Restraint — Closely related to the influence of the economy in Quebec are the policies of fiscal restraint that are currently in favor with the provincial government. Budget deficits are making the government cut back on investment and hiring, which will depress the economy slightly in the short run. Long term, however, the province should be better off.
Quebec’s Current Housing Market
The state of Quebec’s housing market is mixed, although there are many encouraging signs. Many had predicted that the number of housing starts would decline dramatically in 2012, but there has actually been an increase of about 3 percent in housing starts overall in the first quarter of 2012. April saw a dramatic increase in starts in comparison to the preceding month. Starts were 5,125 in April, a 37 percent increase from March. This was driven mainly by construction of multiple-unit housing, as there was a 16 percent decline in detached homes. This indicates stable demand over the next few years before a period of slow and steady growth as time goes on. So when they buy at current mortgage rates, Quebec residents will likely benefit in the long run by investing in residential real estate.
Housing remains more affordable in Quebec than in much of the rest of Canada. The average price of a home in January 2012 was $259,000. This represents an appreciation of nearly 3 percent in comparison to January 2011, a further indication of the strength of housing in Quebec. By 2013, the average price of a home in the province is expected to be approximately $263,000. Slower economic growth and the expectation of fairly level construction costs are contributing to this slow but steady growth in the price of the average residence. The average salary of $48,000 goes further in Quebec than in many other Canadian provinces because the government subsidizes many products and services.
MLS sales for Montreal in April 2012 totaled about 5,200 homes, which was a 16 percent increase over the preceding years sales. Total provincial MLS sales in the first quarter were approximately 22,500, a 7 percent increase. Part of this is likely due to low average mortgage rates. On average, most people can expect a 5-year mortgage rate of around 5.25 percent. We can help you find the lowest mortgage rates in Quebec when you use our tools.
Where to Buy a Home in Quebec
When you are considering an investment in real estate in Quebec, it is important to know the best places to buy. Here are some of the top locations for home buyers in the province:
• Montreal is an obvious choice for a home purchase. As the second-largest city in Canada, housing is perennially in demand, and the city’s status as a job center brings many people to the province. Important job creators in Montreal include Air Canada, the National Bank of Canada, the Canadian Space Agency, and several technology companies.
• Quebec City is the second most populous city in the province, and it is also the provincial capital. First established in 1608, Quebec City has much historical significance and is a popular tourist destination. Manufacturing has a significant presence, and government spending and the tourism industry also drive the economy. The city is also a job center, so housing remains in demand no matter the state of the economy.
• Saint-Georges — Located in the southeastern portion of the province, Saint-George is the largest city in the Beauce Region and home to many schools, clinics, restaurants and retailers. Because it is a center of manufacturing, jobs are often easy to find, so people continue to move to the city to find work and housing.
• Victoriaville — Known for its production of wood products such as hockey sticks, tables, chairs, and even coffins, Victoriaville has experienced population growth over the past several years. This bodes well for future housing demand, so you may want to invest in a home in the city before housing becomes unaffordable.
Get The Best Quebec Mortgage Rates
Clearly, buying a home in Quebec is a good idea. You do not want to pay too much for it, however, so choose a rate that is right for you on this page or fill out the online mortgage application form to speak to a mortgage expert and get the best interest rates on mortgages in Quebec.
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