How will deconfinement and the restart of real estate impact the market?
The Legault government's plan for a gradual deconfinement of Québec gave a second wind to the real estate resale market, which had experienced a significant slowdown between mid-March and mid-May.
The resumption of real estate activities resumed on condition that the public health and social distancing directives are respected.
A big hike in transactions
Property visits were strongly discouraged for a while. As a result of this measure, many buyers put their plans on hold.
However, most of them resumed their search and many with a sense of urgency. “Right now, in Quebec, there are a lot of property searches, visits and transactions taking place,” confirms Martin Desfossés, real estate coach at DuProprio. “A new record was set on our site in May with more than 8 million visits and this record was broken again in June with 8.8 million visits. In addition, the number of calls to our notaries is 50% higher compared to 2019.
Prices holding steady in the short term
This strong demand should keep selling prices fairly stable. It might even lead to an increase for some types of properties in some areas.
“It’s supply and demand at work,” says Desfossés. “Right now, the high demand is putting upward pressure on prices or should maintain them at the same level as pre-crisis.”
Strong demand for our services
Sellers also put their plans on hold because of the pandemic. This has led to a boost in interest for marketing services like DuProprio.
“We’ve been seeing this over the last week or two. Owners are calling, wanting to put their property up for sale right now. ” states Frédéric Auger, senior director at DuProprio. “They want to take advantage of this hyperactive market and, especially, not miss out on this window of opportunity.”
It’s the same story for mortgage brokers, chartered appraisers, building inspectors, surveyors, notaries and other real estate professionals. They will all be in great demand in the coming weeks. For that reason, it would be best to start taking steps now to avoid wait times that could be detrimental to your selling plans.
Uncertainty over the long term
Everyone agrees that the forecast is less clear over the medium and long terms. One thing is certain though: interest rates are still very low, at 0.25% (as of June 3rd, 2020), and this could sway consumers to decide to become homeowners. In the end, the long-term effects will depend on how long the crisis lasts and what impact it will have on Quebec families and their finances.
To learn how DuProprio can help you sell your property safely, call us at 1-866-387-7677 or watch our webinar »