The quebec housing market began to experience the first effects of the crisis of the COVID-19 with a sharp decline in the number of transactions in Montreal in the second half of the month of march.
Property sales were down 5 % on the island of Montreal in march and the number of new listings dropped 22 %. The decrease in the number of sales qualified non-trivial by the professional Association of real estate brokers in Quebec (APCIQ), which released these figures at the beginning of the week.
“In Quebec, the Montreal region is the one which is the most affected by the spread of the virus, because of its greater exposure to international trade, as well as the size and the density of its population,” explains Charles Brant, director, market Analysis at the APCIQ.
The latter indicates that the Montreal market, ” is at once exposed to psychological stress caused by measures of distance are more stringent and more uncertainty on the economic plan “.
Difficult period in view
According to the expert, it is necessary to provide for other difficult months for the market as a result of the pandemic.
“In a context where uncertainty about the outcome of the economic crisis is very high, it is expected that buyers and sellers remain on the sidelines,” he said. The months of April and may should be the month the less active ever recorded for the season since the beginning of the millennium, ” said Mr Brant.
The other regions of Quebec show increases of sales in march, but according to the expert, this is only a matter of time before they follow the trend observed in Montreal.
For the moment, the prices, however, continue to be a strong increase in the median price of a house in Montreal have increased since a year of 7 % in Quebec and 10 % in Montreal. The APCIQ, however, has predicted, a few weeks ago, that the price of properties is expected to decline by 2020.