What’s the outlook for the real estate market in 2021?
Published on January 21, 2021
The year 2020 was an exceptional one for real estate. So, early this year, the whole industry waited anxiously to hear how it would be impacted by the stricter health measures announced for January 6. It was with relief that we learned that all activities for the purposes of a real estate transaction (appraisals, visits, inspections, etc.) would continue to be allowed, except between 8 p.m. and 5 a.m.
While there was a slowdown just before the January 6 announcement, buyers seem to be taking the market by storm since then. Since the beginning of the year, the number of calls to DuProprio notaries again increased 150% compared to the same time last year, and the traffic on DuProprio.com has been 40% higher.
All is well for the time being. The upcoming weeks will give us an indication of how the market will perform over the medium term. Remember that the next few months are generally the busiest of the year.
A look back at 2020
When COVID-19 came into our lives in March 2020, it changed the way a lot of industries operate. In real estate, the pandemic put the brakes on a market that had had a promising start. After the imposed pause, Quebecers stepped on the gas and the market resumed.
In many Quebec regions, the market kept up a frantic pace until the end of 2020. Sales above the asking price were through the roof. The number of properties declared sold on DuProprio.com was 36% higher from June to December than in the same period in 2019. And a new sales record was broken in 2020, reaching above 25,000.
“Increased sales and a lower inventory led to faster selling times and higher prices,” summarizes Martin Desfossés, real estate coach at DuProprio. “In this very active market, we helped many of our clients juggle multiple offers.”
A seller’s market
What we learned during the first lockdown is that buyers kept searching online, particularly thanks to 3D virtual tours, and that they were ready to take action as soon as the lockdown ended. At the moment, there’s nothing to indicate that the market will slow down suddenly.
Given that we’re starting the year with a low inventory and active buyers, and given how things played out in 2020, the situation continues to look excellent for homeowners wanting to move forward with their selling plans.
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