Quebec's winter chalet prices up to over $500,000 this year, says Royal LePage

Winter chalets. FILE PHOTO SOURCE: Wiki Commons

Quebec's winter chalet market is resisting the effect of rising interest rates.

Despite a moderation in activity, prices are rising in most resorts, according to a report published Wednesday by Royal LePage.

During the first 10 months of the year, the median price of single-family homes located near ski resorts rose by 7.8 per cent to $501,600 compared to a year earlier. The value of condominiums in the same areas rose by 4.9 per cent to $399,300.

"People who buy winter recreational properties are well-off and are less affected by the rise in interest rates," said Laurentians Royal LePage real estate agent Éric Léger. "We don't feel any major impact on our markets because these people have a certain level of savings and financial stability that has enabled them to make their dreams come true."

That's why, he said, we're not seeing a significant increase in the inventory of properties for sale in our regions.

Even so, the market is showing signs of moderation. The number of transactions for single-family homes in the sector fell by 8.5 per cent in the first ten months of the year. The fall was 22.8 per cent for condominiums.

Against this backdrop of moderation, Royal LePage expects prices for single-family homes in areas near ski resorts to rise by 1.8 per cent.

However, the scarcity of this type of property is keeping prices up despite this lull.

"In this context, demand remains strong, but overbidding situations are now much rarer," said Eastern Townships real estate agent Véronique Boucher.

She pointed out that sales times are a little longer and that the negotiation process has returned to "normal."

"So we're seeing negotiations on the posted prices right now," she said. "They're not huge negotiations, but we're really more in a situation of outbidding. With a few exceptions, but it's not like it used to be."

Both brokers believe that it's still a seller's market.

"I don't think that the buyer has the upper hand in negotiations, because there's still a scarcity," said Léger. "You know, selling is a great deal, but you have to relocate, and costs are high everywhere."

END OF SHORT-TERM RENTING?

One thing is certain: the interest of investors who buy with a view to renting out their property on a short-term basis on a platform such as Airbnb has waned as several municipalities tighten up their rules.

"Definitely, someone who wants to do short-term rentals and is considering buying is a market that is shrinking, shrinking, shrinking, not to say disappearing in many municipalities," said Léger.

This trend is unlikely to have a major impact on the market, while several popular sectors were already imposing constraints on short-term rentals, added Boucher.

"It was already very difficult in our area. This is not really welcome," she said.

This report by The Canadian Press was first published in French on Nov. 29, 2023.