The price of homes sold in the suburbs of Montreal is coming back down to earth after soaring over the past three years. Even if this landing is on the whole soft, potential buyers are still unable to acquire the property of their dreams.
From 2020, Émilie Daigneault and her spouse began to scour Centris ads in search of the rare pearl. In their sights: a three-bedroom house in Sainte-Anne-des-Plaines, in the northern crown of the city, for around $350,000. “That year, we made at least 30 visits in a single file, with barely five minutes to visit, and there were multiple offers with higher bids each time. »
After two years of active research and some 15 inconclusive purchase offers, the couple became discouraged and instead bought Émilie’s parents’ duplex, “without overbidding or welcome tax” since the sale was made between the members of the same family.
“More normal” conditions
After peaking in April 2022, the average price of homes sold in Quebec during the first quarter of 2023 fell by 4%. “During the second half of 2022, we saw a correction in prices resulting from the disappearance of the overbidding phenomenon,” explains Charles Brant, director of the market analysis department at the Association professionnelle des courtiers immobiliers du Québec. . »
Result: properties are negotiated with more normal conditions, such as an inspection, or on the condition of the sale of another house. “We therefore see a certain normalization of the markets taking place”, notes the analyst.
The peripheral regions of Montreal are experiencing the greatest price corrections this year, since they are the ones that have experienced the greatest overheating in 2022. This drop in prices is not, however, homogeneous, even among the suburbs of Montreal: the Duvernay district , in Laval, and the La Plaine sector, in Terrebonne, saw home prices drop by 20%. While in Saint-Jérôme, prices have continued to climb by 8% this past year.
This slowdown is welcome for real estate brokers, admits the director of two real estate agencies located in Laval, where prices have fallen by 6%. “For us, the fact that things are calming down is good news because we will have time to work with people,” explains Michelle Demange. Everyone’s been mad for two years, it was unhealthy. »
These price fluctuations can be explained by the overall economic situation, but also by a local context. For example, in Duvernay, the number of properties for sale was excessively low last year and prices rose by 11%, according to Michelle Demange. Since the neighborhood is inhabited by older people, the broker hypothesizes that the pandemic has limited their ability to make visits or hindered their plan to move to an RPA. “This year, we have 12% more sales. The buying customer has more elements of comparison, so there is no one-upmanship,” she concludes.
Buyers on the lookout
In Sainte-Anne-des-Plaines, prices increased slightly, by approximately $10,000 (2.7%). Despite the purchase of the duplex, in 2021, Émilie and her spouse are continuing their research. It is that their situation changed with the birth of little Léo, 15 months, and their desire to offer him a brother or a sister. The two-bedroom apartment they occupy is too small for four, the mother believes. “At the moment, we are in no rush to find our house, but that will change if I become pregnant. Of course, I wouldn’t have a second child here. But if, on the contrary, we find our house, I will say: OK, let’s go for a second! »
“We don’t know what lies ahead: will there be a recession, will houses be worth $100,000 less in a few years, will interest rates continue to disassemble ? We are quite reluctant to buy in this context,” worries Émilie.
This reflex to observe and wait largely reflects that of other buyers in Quebec regarding the current economic situation. The key rate has been raised eight times in a row in just one year and the Bank of Canada is not ruling out the possibility of raising it again if inflation does not come into line in time.
This is what explains why the average selling time for single-family homes increased by 15 days between the first quarters of 2022 and 2023. “There is a certain wait-and-see attitude before making decisions, observes Charles Brant, and those who are ready to buy on current terms, they do so with the right property. »