Is the real estate market still red-hot?
Published on October 20, 2021
The Quebec market is changing. Get the most recent stats and projections in our Real Estate Minute articles.
For months now, the real estate market has been booming due to a combination of a high demand from buyers and a low inventory of available properties.
Martin Desfossés, real estate coach at DuProprio says, “We anticipate that people who were reluctant to sell during the pandemic will list their property once that’s behind us. But we also have to expect that the continued high demand from buyers will have a significant impact on the inventory, because properties are not staying listed online long.”
The Bank of Canada1 has repeated its intention to keep a very low policy interest rate, near zero, so long as the economy isn’t ready to support a rate hike, which it says shouldn’t happen until the second half of 2022. Some homeowners could therefore decide to resume their selling plans before this interest rate rises.
Fast market, motivated buyers
“The imbalance between offer and demand has lessened overall, but it’s still a buyer’s market. Most markets continue to be overheated and selling times are still very fast,” says Hélène Bégin, senior economist at Desjardins.2 That’s certainly the situation for DuProprio clients. The low inventory of properties listed creates a sense of urgency, which has made the average selling time drop by 37 days3 during the first quarter of 2021, compared to the same period in 2020.
While we are seeing a drop in the number of real estate transactions in general, selling prices are still climbing and overbidding is still common, as 1 in 3 property sales in Quebec are negotiated above asking.
Draw on our team’s expertise
Buyers often plan a move for the spring. So, winter is an ideal time to list a property to maximize the pool of potential buyers.
Are you thinking of selling your property? The money you’ll save by selling without a commission will give you added buying power, along with complete control over home visits and the negotiations—while getting support until you sell.
Our team of appraisers, coaches and notaries give you all the support and tools you need to sell under the best conditions possible and with total confidence.
Do you want to take advantage of the real estate market and sell your property? Call us at 1-866-387-7677 or watch our webinar to find out how our team can work with you and help you save thousands of dollars in commission.
2 ZOOM SUR L’HABITATION, Études économiques, October 12, 2021 https://www.desjardins.com/ressources/pdf/zoom1021f.pdf
3 The average selling time is now 66 days, compared to 103 days last year (single-family homes, January 1 to June 31).