Back to major for the real estate sector

Un retour en arrière majeur pour le secteur de l’immobilier

The hangover that will follow the pandemic of COVID-19 promises to be long and painful for the real estate sector, and this, even if Québec is to be found in a much better position than many other provinces at the present time.

The president and chief executive officer of the canada mortgage and housing corporation (CMHC) has startled more than one this week when he explained to federal parliamentarians that the average price of homes could fall by 9 % to 18 % in the country within 12 months.

For real estate brokers across the country, Evan Siddall had, rather, to confirm what they suspected from the beginning of emergency measures, on march 15.

“The mortgage rates are exceptionally low at the moment, and even with that, there are almost no buyers appear,” sighs in the interview, Robert Beaudoin, vice-president of real estate operations at Proprio Direct.

“The last few months had given exceptional results before the crisis. All of this is ancient history… “

He expects a pullback “in the price of 2017” in the sector.

Quebec has, however, rejoice, to the extent that other markets are much more affected by the crisis, stresses Joanie Fontaine, a senior economist at the firm information, real estate JLR.

“Alberta is going to have a lot more difficulty than us to take up, especially when we take into account the collapse in oil prices. And it must be remembered that before the crisis, Montreal and Ottawa-Gatineau knew the two highest growth rates in the country. It may actually be decreases of prices in Quebec, but it is expected that it will fare better than others. “

The sellers are waiting for

With the banning of free visits and the fears surrounding the health of many residence owners have postponed their planned sale, which has resulted in “a massive fall” of new listings in April, down from 74 %.

“It’s sort of a false problem : people don’t sell because they say that there are not potential buyers. But it remains beautiful and many buyers, ” says Joanie Fontaine.

With 13 000 entries residential, the Montreal region has not counted, too few properties to sell since 2003.

Fall of 55 % in Quebec city

In the region of Quebec, in total, only 403 sales were recorded during the month of April 2020, a drop of 55% compared to the same month last year, according to the Association professionnelle des courtiers immobiliers du Québec (APCIQ).

The situation is even worse in the metropolis. All in all, the 1890s sales were recorded in April, which represents a drop of “history” of 68 % in comparison to April 2019. A first decline after 61 consecutive monthly increases, which is more than five years.

The properties on the market are either too expensive or poorly, is unattractive, summarize the stakeholders surveyed by The Journal.

“Sellers are in a position of weakness. The seller must be motivated and ready to negotiate, ” said Mr. Beaudoin.

Variation in the median price of the properties (from 2018-2019 to 2019-2020)

Island of Montreal

  • Single family +6 %
  • Co-ownership +9 %

Gatineau

  • Single-family +5 %

Source : JLR

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