The average value of chalets and vacation homes has jumped 73% in 10 years in Quebec, while the number of properties of this type has fallen by 11%, show data from the Institut de la tourisme du Québec (ISQ) compiled by The Press.
“The rush for recreational properties is coming to an end,” the real estate brokerage network Royal LePage predicted at the end of March, announcing that Quebec would be the hardest hit province, with a price drop of 8%, or almost twice the Canadian average (-4.5%).
“It is clear that things are not going exactly as we had planned,” admitted broker Éric Léger, of Royal LePage Humania, in a telephone interview this week.
Instead of plummeting, recreational property prices have instead continued to rise, by 2% compared to last year, he estimates.
The price drop expected in the spring reflected a survey carried out during the first three weeks of March among 202 brokers active in recreational regions across the country.
It used to be that recreational property was a luxury, so whenever there was an economic crunch, it was the first thing that was sold off. Since the pandemic, things have changed a lot. The other thing is the scarcity of properties: there is less inventory than expected on the market.
Éric Léger, broker, Royal LePage Humania
Demand has increased with the pandemic. Telecommuting enthusiasts have joined retired or semi-retired baby boomers for whom living in a recreational region has been a “dream” for a long time.
“As long as the supply of properties does not increase significantly, I believe that we will remain fairly stable in terms of prices. »
More affected regions
Since 2014, the standardized average* taxable value of cottages and second homes has exploded, going from $101,225 to $175,023, a jump of 73%, show ISQ data. In the 10 most vibrant regions, we recorded increases of 100% to 200%.
Unsurprisingly, this list includes MRCs from Estrie, including, in third position, Brome-Missisquoi (+ 151%), which includes municipalities like Sutton and Bromont.
“It’s been more than a year since the Bromont region, among others, had statistics outside the Richter scale,” confirms Mr. Léger.
This list also includes regions of Montérégie, including, in first position, the MRC Les Jardins-de-Napierville (+ 207%).
In this very agricultural MRC, “all buildable land in non-urban areas has seen their prices explode,” explains Norbert Legros, approved appraiser at the Fédération québécoise des municipalities (FQM). In Saint-Édouard, “lots of land that had sold for $10,000 three to four years previously were sold [désormais] $100,000 to $120,000,” testifies Mr. Legros.
“It’s not just in Jardins-de-Napierville, it’s throughout Quebec. We see the trend everywhere! »
From Brossard, it only takes 15 to 20 minutes to get to Saint-Édouard, he emphasizes. “We have seen it almost everywhere in recent years: properties in areas other than villages have started to sell for more. »
Even in Témiscamingue
The prefect of the MRC of Témiscamingue, Claire Bolduc, was not surprised to see her territory on the second step of the podium, with an increase in the average value of chalets of 158% over the past 10 years.
From Montreal, and even more from Quebec, people find us far away. But we are four hours from Toronto. For the very wealthy populations of Toronto and Barrie, very close to Toronto, Témiscamingue is a vacation spot of first choice.
Claire Bolduc, prefect of the MRC of Témiscamingue
The absence of heat waves and the “very rich natural environment” with its “7,500 lakes and rivers” are attractive, and waterfront land is cheaper there than in Ontario, where it has become unaffordable.
“People walk around and make offers on properties that they would like to purchase,” even if they are not for sale, says the prefect. She cites the case of a house in Saint-Édouard-de-Fabre, located in a row but whose land overlooked a lake, which thus became a vacation residence a few years ago.
The risk of gentrification was even a subject of discussion in a meeting of MRC elected officials.
“So much the better for those who sell [leur propriété], we cannot condemn or criticize, but once we have said that, how do we do it, everyone together, so that locally, people continue to have access to their living environment? », raises Mme Bolduc.
Where have the chalets gone?
The province has almost 17,000 fewer cottages and vacation homes than there were 10 years ago. A trend going against the tide as the number of single-family residences, condos and multiplexes has increased. In fact, second homes have not disappeared from the landscape, but changed category.
“If you have a chalet that becomes a permanent residence and it is in a residential sector, it will become a residence and not a chalet,” summarizes assessor Norbert Legros.
“This is what we are experiencing a lot these days,” observes the president of the FQM, Jacques Demers. Prefect of the MRC of Memphrémagog and mayor of Sainte-Catherine-de-Hatley, in Estrie, he sees owners of “more magnificent, larger second homes [que leur résidence principale] and on the edge of a lake » decide to live there full time.
In its MRC, where more than half of the municipalities are in the process of redoing their role, “the assessments play an increase of between 60% and 80%, it’s enormous”.
Increased land wealth represents “collective strength” for a municipality. It can, however, provoke debate, when owners of second homes find themselves providing a greater share of tax revenue. “When we decide to build a community hall, an ice rink or similar investments, they say: ‘We would prefer not to pay for that’,” illustrates the president of the FQM.
Municipalities have therefore modified the financing of certain services, such as the police, by removing them from general taxation and instead billing them “per door”. Each owner then pays the same price for this service, regardless of the value of their residence.
“When there are very significant gaps between, say, lakefronts and other residences, there are all kinds of formulas. There are municipalities that have different revenues. »
* The standardized property values of a municipality for a given fiscal year reflect the values established on its assessment roll multiplied by a comparative factor determined for that fiscal year. Source: compilation of the Institute of Statistics of Quebec, based on data from the Ministry of Municipal Affairs and Housing (summaries of the property assessment role of municipalities).