In a new study, the Quebec Federation of Real Estate Boards (QFREB) found that the number of homes that sold for values higher than their asking prices has noticeably increased across the province.
This development was most noticeable in sellers’ markets. Fully 10% of properties sold in Montreal over the past year went for more than their asking prices, while the proportion was 7.2% in Gatineau.
Compared to other housing types, plexes (i.e., small rental properties with two to five homes) typically sold for more than their asking prices. “This was particularly the case in the Montreal, Quebec City, Sherbrooke and Trois-Rivieres CMAs. The Gatineau area was the exception, as sales above the asking price were most prevalent among single-family homes,” the QFREB stated.
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As for the gap between the asking price and the actual sale price, the ratio ranged from 3.7% in Quebec City to 2.5% in Gatineau. In terms of actual dollar value, the Montreal CMA showed the largest gap, with buyers of the most hotly contested properties paying an average of $15,072 above the asking prices.
“This was followed by the Quebec City and Sherbrooke CMAs, where buyers paid an average of $10,030 and $7,958, respectively, above the asking price,” the QFREB added.
The study came as Quebec’s housing segment continued to exhibit robust sales amid scarcer supply.
“In this context, we see increased pressure on prices and more frequent situations of bidding wars,” according to Paul Cardinal, manager of the QFREB’s Market Analysis Department. “In most cases, when a property sells for more than the asking price, it is because a bidding war has taken place.”
Ephraim is currently a journalist at Mortgage Broker News, Real Estate Professional and Canadian Real Estate Wealth.
Ephraim is a highly accomplished news reporter whose work has been published across North America and the Asia Pacific region. Before joining Key Media, Ephraim spent eight years working as a journalist with Reuters TV. His areas of expertise include real estate, mortgage, and finance.
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