MONTREAL – The real estate market in the Greater Montreal area has seen a first quarter of 2020 record, according to a study published Tuesday by the broker Royal Le Page, but should fall to the point of death due to the pandemic of COVID-19.
The price of homes in the region increased by 7.2 % annual rate in the first quarter, a second quarterly record straight in almost a decade. The average price amounted to 441 979 $.
However, due to the pandemic, Royal LePage has been a decrease in sales, but especially of new listings of properties for sale that began in mid-march. This reality should last as long as the isolation measures will be in effect, depending on the broker.
“The flourishing real estate market of the Greater Montreal area has been disrupted by the pandemic COVID-19 on the eve of the high season of moving, where several people are planning the sale or purchase of a property”, indicated by way of a press release Dominic St-Pierre, vice-president and general manager of Royal LePage, who considered, however, a rapid recovery, since it is not a demand crisis, but in a shutdown for health reasons.
The study has mentioned that the price should be lowered to the recovery, between 0.5 %, if the economy recovers in June and 3.5 % in the event of a recovery in September.
This last scenario takes into account the fact that real estate brokerage is in break in Quebec, as it is not considered an essential service.
This would also be the largest decline from one year to the other as the Greater Montreal area have known for the last 50 years .