Real Estate Surges in Sherbrooke: Homes Are Hotter Than Ever!
Greetings, house hunters and aspiring millionaires! Buckle up, because the Sherbrooke metropolitan region is flipping the real estate market on its head. This summer, sales of single-family homes have shot up by an astonishing 26% compared to last year, while condos are positively soaring with a 31% increase! Who knew homeownership could be this feverish? It’s like Black Friday for houses, folks!
Quebec: The Real Estate Race
To put this in perspective, the whole province is feeling a bit sluggish compared to the energized Sherbrooke area. Sales of single-family homes across Quebec have only increased by 13%, with condos growing a paltry 16%. Everyone knows that to be the best, you have to beat the competition, and Sherbrooke is clearly winning this race! A remarkable total of 494 real estate transactions shook things up over July, August, and September. I mean, that’s more action than a soap opera marathon!
Building Blocks: Why Such an Increase?
If sales have shot up, it’s because there are more homeowners ready to sell their homes than other regions. You see, according to the wise words of David Bourgon, the head honcho at the Real Estate Chamber of Estrie, Mauricie and Centre-du-Québec, it’s like we got a store with ample stock on the shelves. If you keep bringing out the goods, naturally the sales will follow! It’s simply Supply & Demand 101.
Summer Sales Breakdown: A Closer Look
| Single-Family Homes | Condos | Plex | |
|---|---|---|---|
| Sales | 359 (+26%) | 81 (+31%) | 54 (+15%) |
| Median Price | $425,000 | $300,000 | $536,000 |
| Sales Lead Times (Days) | 0 | 1 | 12 |
What’s Driving Up Prices?
Surprise, surprise, properties are costing more than last year! The typical single-family home in Sherbrooke is now $425,000, a 9% hike compared to last year. Condos are also not slacking off, with a median price tag of $300,000, climbing 4% this year. Who knew that being a homeowner could cost this much? Is there a hidden treasure map we’re missing?
David Bourgon notes that the influencer in this inflation of prices is primarily a lack of inventory. It’s like a buffet where everyone shows up for seconds but the chef forgot to make more food! New homes need to be built, people. We can’t be using our architectural skills by just stacking empty boxes on each other and calling that a living space.
Looking Ahead: What’s Next?
Sales are projected to get even spicier in the coming months! With interest rate cuts on the horizon, anticipate an influx of buyers that could have banks adding another zero to their expense reports! And as more first-time buyers hit the market, our real estate bargain bonanza could kick into high gear!
In summary, if you’re thinking about buying in Sherbrooke, grab your hard hat and a shovel because the construction scene is gearing up! The lack of builders has meant homes have become scarce pearls in this real estate oyster, but there’s a light at the end of the tunnel, folks. Let’s build, buy, and make Sherbrooke home sweet home!
In the Sherbrooke metropolitan region, sales of single-family homes increased by 26% this summer compared to last year. For condos, the increase is even greater: it amounts to 31%. The territory records the strongest growth in real estate transactions in Quebec.
For comparison, across the province, sales of single-family homes increased by 13%, while growth was 16% for condos, according to the quarterly analysis of the Professional Association of real estate brokers in Quebec.
In the greater Sherbrooke region, a total of 494 transactions were concluded in July, August and September 2024.
If sales have increased, it is because a greater number of owners have put their property on the market than elsewhere in the region.
Sales details in the Sherbrooke metropolitan area in the third quarter of 2024
| Single-family homes | Condos | Plex | |
|---|---|---|---|
The Sherbrooke metropolitan region includes the city of Sherbrooke, Magog, Val-Joli, Stoke, Ascot Corner, Orford, Saint-Denis-de-Brompton, Hatley-Canton, Waterville, Compton and North Hatley.
Source: Professional Association of Real Estate Brokers of Quebec
We pick up with a store that has stock on the shelves if I may make the comparison. This means that sales increase, at that time, explains the president of the board of directors of the Real Estate Chamber of Estrie, Mauricie and Centre-du-Québec, David Bourgon.
Estrie also performed poorly in the third quarter of 2023 due to the rise in interest rates. A readjustment remained to be made.
Interest rates last year slowed the enthusiasm of many buyers. We know that we are already at a third drop, we are expecting a fourth. This too fuels the enthusiasm of buyers a little, notes David Bourgon.
Higher prices
Unsurprisingly, properties are costing more than last year. In Sherbrooke, single-family homes sold for $425,000, an increase of 9% in the median price compared to 2023.
For condos, the median price was $300,000 in the third quarter. This is an increase of 4%.
According to David Bourgon, the lack of properties on the market explains the inflating prices.
Prices are always based on supply and demand, naturally. As sales are higher than new registrations, it is not enough, there is not enough inventory to fill the housing deficit, he explains.
David Bourgon reminds us that new homes must be built to balance the market. Construction has not increased enough.
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To lower the price of residences, we must focus on construction, maintains David Bourgon.
Photo: The Canadian Press / Sean Kilpatrick
In 2023, few workers were busy building homes. Quebec saw 38,900 housing starts, a historic decline of 32% compared to the previous year, according to data from the Canadian Mortgage and Housing Corporation.
The culprits? Lack of labor, rising construction prices, inflation and difficult borrowing conditions.
Since then, construction has picked up again in the province. 24,895 construction starts have been recorded since January, or 28% more than in 2023 at the same date. Sherbrooke saw 900 construction starts, a drop of 4% compared to 2023.
Months to come
Sales will continue to grow and probably more markedly in the months to come, believes David Bourgon.
We expect a slightly stronger increase in sales, because we expect a fourth interest rate cut on October 23. Several experts say it could be half a point this time, while previous drops were a quarter point.
Next week, the key rate could rise to 3.75%, according to an analysis by economic journalist Gérald Fillion.
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In Sherbrooke, single-family homes sold for $425,000, an increase of 9% in the median price compared to the third quarter of 2023.
Photo: Radio-Canada / ANDRÉ VUILLEMIN
In December, a measure will allow first-time buyers to amortize their mortgage over 30 years, provided they take out insurance, which should put pressure on the real estate market.
“There are advantages for the first buyers, it will ensure that they will reappear on the market in a more sustained manner. »