This text is part of the special section The great builders
Far from holding onto an urban legend or relating only to isolated and occasional cases, the exodus of Montrealers to the suburbs, since the start of the pandemic, is becoming clearer. At a time when teleworking has multiplied the uses we make of our home, this quest for a more spacious and versatile home has been accompanied by significant price increases and has reshuffled the cards of real estate dynamics. even in more remote parts of the province.
This is absolutely corroborated by the market figures. We experienced very strong sales growth in the areas surrounding the Island of Montreal, both in the suburbs and in the agglomerations. [avoisinant] the metropolitan area, ”says Charles Brant, Director of the Market Analysis Service of the Professional Association of Real Estate Brokers of Quebec (APCIQ).
According to Mr. Brant, the gap between house prices in Montreal and those in the suburbs is narrowing, the latter becoming progressively more expensive. “We are not yet at the same levels, but still! In Montreal, for a single-family house, it is $ 705,000. As for the price statistics for the peripheral regions, we are approaching $ 500,000, depending on the sector. This is the case, for example, on the South Shore and in Vaudreuil-Soulanges. This is a significant jump compared to 2018, since prices – for the South Shore – were then more around $ 320,000 for single-family homes, ”he argues.
The single-family sector has been particularly affected by this acceleration in price increases due to COVID. “Because of the pandemic, families who lived in apartments moved towards the outskirts, where there were houses available at a still affordable price. But the price rise has been so rapid that now, even in the periphery, prices are extremely high and affordability is less and less important, ”summarizes Mr. Brant, recalling that the extremely low interest rates that the ‘we know have helped stimulate the market.
A domino effect
Among the big winners of this exodus, we can cite the North Shore, which has managed to capture a certain part of the demand. The South Shore is not left out since cities like Boucherville and Saint-Bruno have also been very popular. “The most spectacular case is Saint-Jean-sur-Richelieu, which has the particularity of being a little further away and yet attracting a lot of people, because of the quality of life that can be found there. find, ”emphasizes the APCIQ expert.
This influx of buyers has changed the situation in some local real estate markets. “There was a system of communicating vessels which meant that the arrival, in the suburbs or in municipalities on the outskirts of the metropolis, of Montreal households from the service sector and benefiting from relatively high salaries contributed to price. The locals then had no other choice, if they wanted to own property, than to go to places even further away, such as the markets in central Quebec. […] Cities like Granby, Saint-Hyacinthe, Sorel, Joliette or even Saint-Jérôme have experienced strong enthusiasm for the pandemic, ”Mr. Brant analyzes.
The co-ownership has not said its last word
Observable in the first year of the pandemic, this trend is nonetheless fading away given the soaring prices and the gradual depletion of available home stocks. Gradually, buyers are returning to the co-ownership.
“It is more what takes over in a context where there are fewer fears, because of the vaccination. People are more inclined to live in condominiums, even in the suburbs, because that’s where it’s cheaper. Although there are pockets on the island of Montreal which can nevertheless offer attractive prices, particularly in the city center, where market conditions are less tight than elsewhere, since it is the one that has the most ultimately suffered from the health crisis, ”notes Charles Brant.
While it’s premature to predict which changes brought on by the COVID-19 pandemic are here for good, it is sure to leave its mark. “Demand changes, needs change. On the condominium side, people are less and less inclined to buy an apartment without a balcony or terrace. Small apartments [qui en sont dépourvues] are therefore the first losers in the crisis. Promoters will have to adapt to this change. People also want less density, and that it behave differently, with buildings that are lower, more modular and with more green space. There are still some interesting transformations, ”concludes the analyst.