The real estate in time of COVID-19: a market that is “not fun” for the buyers

L'immobilier en temps de COVID-19: un marché «pas le fun» pour les acheteurs

The quebec housing market does no favors to potential buyers, who have to deal with an inventory of homes for sale limited, which continues to push prices upward despite the pandemic of COVID-19.

“We are really in a sellers’ market, confirms the broker’s real estate firm Engel & Völkers Montreal, Christopher Kalek. There are so many buyers who are ready to explore and buy property.”

And the health crisis has not changed the trend, quite the contrary.

“We already saw it before. The pandemic has made it as a pause, but the challenge of the lack of inventory remained. There are even more buyers after the COVID,” Mr. Kalek.

A recent study on house prices and the market forecast from Royal LePage confirms the observations of the real estate broker: the month of interruption of the real estate activity “has been sufficient to cause a pent-up demand even more than anticipated,” one can read there.

This situation has contributed to the growth of the prices in all segments in the greater Montreal area in the second quarter of 2020, which took place from April 1 to June 30.

The price of the aggregate in the metropolitan area rose by 7.7%, from one year to the other.

“On the side of the buyers, it is not so much fun these days, should Mr. Kalek. We found a property that we love and there are two or three offers that arrive, it is stressful, it moves very quickly.”

Nevertheless, the time is always a good time to buy, according to him, since the value of properties continues to increase in Quebec.

“We haven’t seen in over-valuation as in Toronto or Vancouver,” he said. The value [of properties] in Quebec continues to rise slowly. Even if you pay the full price today, the future value will continue to increase, then it is always a good investment.”

The economic uncertainty that surrounds the COVID-19 and the possibility of a financial crisis potential should not change much, according to the broker, always because of the inventory extremely low homes for sale.

“The offer is so low that it will pull the prices upward. There had been alarmist predictions before the pandemic, and it has not really materialized. In the meantime, there is a risk of losing opportunities to buy beautiful properties”, he says.

Her advice for buyers? “Be patient, but move quickly.”

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