Buying a house is like long-term savings. As an owner, you make mortgage payments every month that finance your assets and allow you to build capital that you can recover at a later date when you sell your property.
Across Canada, real estate properties have significantly increased in value over the past decade. In Quebec, the median price of single-family homes has risen considerably in recent years, from $209,500 in 2010 to $416,500 in 2023. This represents an average appreciation of about 5% per year over this period. This growth is certainly not over.
What Drives the Residential Real Estate Market?
Whether you&’re already a homeowner or about to become one, owning property is one of the most important investments you’ll make in your lifetime. Therefore, you should be aware of the four main factors that influence the shape of the real estate market, which are population growth, interest rates, income and socio-demographic trends.
It stands to reason that everyone needs somewhere to live and that’s why the strength of the residential real estate market is directly linked to demographic growth. Whether it’s as a result of immigration, migration or natural population growth, the higher the population increase, the higher the demand for housing and thus, the stronger the market.
Interest rates also play an important role in the real estate market. When rates are lower, generally the market is stronger as lower rates mean less cost to finance a property. This, in turn, encourages consumers to become owners, or to buy larger or more luxurious properties or renovate.
When property values are increasing, it’s generally a true reflection of a household’s ability to pay. Therefore, the market’s strength is closely connected to job creation and a household’s disposable income.
And finally, there are certain socio-demographic trends which have an impact on the real estate market. For example, when households get smaller, meaning more and more people have chosen to live alone as has been the case over the past decades, more properties find buyers.
In conclusion, remember the law of economics: price is always a reflection of supply and demand. So, all other things being equal, high demand means higher prices.
About Me
Danny Lachance
Courtier immobilier résidentiel
I am a passionate, driven individual ready to take on any challenges that come my way. With an exceptional ability to adapt to changes and connect with people, I stand out for my authenticity and sincerity. When I choose to work with you, it is because I firmly believe in the potential of your project. I commit wholeheartedly to ensure we achieve the desired goals together.
Sports, which play a significant role in my life, have taught me essential values such as discipline, rigor, and perseverance. I have applied these lessons both on the sports fields and in my professional career. As a natural leader in my sports teams and in the business world, I am also a proud father of three boys, all hockey players, and I understand the sacrifices required for parents of young athletes.
Together with my life and business partner, we have built a beautiful blended family of seven, including five children. My early immersion in the business world, working with my father at the family company Lachance Chasse & Pêche for over fifteen years, has forged a solid entrepreneurial spirit in me. After working in event management and then in the automotive industry, where I concluded my career as General Manager, I turned to real estate, a field that has deeply fascinated me for many years.
I am proud to accompany you on this real estate journey, whether it is simple or complex. With you, I am prepared to navigate the challenging moments and celebrate the successes, regardless of the project's size. My commitment is total! YOUR success is MY priority!