“This new outbreak of fever, once morest a background of overbidding, might be one of the very last, advances in a press release the director of the Service of market analysis at the APCIQ, Charles Brant. (Picture: courtesy)
The 17% surge in residential real estate prices observed in March in the greater metropolitan area is coming to an end, estimates the Professional Association of Real Estate Brokers of Quebec (APCIQ).
The organization notes that prices have still progressed in a “vigorous” way. However, it notes a change in the inventory of properties for sale.
“This new outbreak of fever, once morest a background of overbidding, might be one of the very last, advances in a press release the director of the Service of market analysis at the APCIQ, Charles Brant. The number of registrations in force tends to stabilize, or even go up in certain sectors and categories following an incessant fall recorded since the start of the pandemic.
At the same time, he adds, sales have declined to lower numbers than might be seen before the pandemic. In March, they fell on the Island of Montreal (-10%), in Laval and on the South Shore (-12%), on the North Shore and Vaudreuil-Soulanges (-15%) as well as in Saint-Jean-sur-Richelieu (-37%).
“In a context of rising rates, the pool of potential buyers is shrinking more and more,” says Charles Brant. The new increase in the key interest rate expected on April 13 should help calm things down even more, as more owners and sellers might put their property on the market in order to take advantage of a still very favorable market situation. »
Québec
The situation is not quite the same in the Quebec region. Listings are still down and sales, while a bit weaker (-16%) than the March 2021 record, are still strong.
“This situation creates even tighter market conditions and rapidly increases the proportion of sales concluded following an overbidding process, explains Charles Brant. This inevitably results in an acceleration of price growth, particularly for the plex market, which is enjoying growing interest in the eyes of small investors.”
The median price of single-family homes rose by 10%, that of condominiums by 12% and that of plexes (two to five units) by 17%.
The Quebec market is catching up with that of Montreal, says Charles Brant.
Buy or postpone
If the APCIQ sees the end of the tunnel, potential buyers do not seem to see it. A recent survey conducted by Scotiabank reveals that 89% of Quebecers surveyed believe that prices will continue to rise over the next 12 months.
This results in a high proportion (43%) who have decided to postpone their purchase project until the market calms down.
“To know whether it is better to buy or postpone, it is difficult to rely solely on the figures of a single month, underlines the regional vice-president, Eastern Canada, at Scotiabank, Vincent Déziel. We still see a lot of sales with overbidding and short lead times. Many people are postponing their buying decision once more.”
To know if it is currently a good time to buy a property or not, each buyer must look at their situation.
“A person who has a good down payment and who is able to withstand the rate hike will be in a better position, admits Vincent Déziel. If we intend to keep the property for 15 or 20 years, the impact of the price will be less.
He also recalls that the mortgage rates in effect, even if they are increasing, are similar to those which were offered just before the pandemic.
