The real estate market has been so upset in recent years that buyers and sellers often find themselves confused in the 2023 market. Contrary to what one might think, prices for single-family homes are higher than in 2019, sales times have decreased, but the number of total sales has also decreased slightly.
Before the pandemic, few would have thought that they would have to compete with other buyers to become high-priced owners of an unrenovated and poorly located house and that the situation would even be illustrated in a sketch of the Bye bye.
After seeing prices soar when interest rates were at their lowest, many were predicting a sharp drop in prices and sales. We also imagined a rush of owners handing over their keys to the bank in a context of rising rates.
This horror movie scenario has yet to come true in 2023.
Despite inflation and high interest rates – but never as high as in the 1980s and 1990s – houses in Quebec are selling faster than in 2019. Statistics show a delay of 98 days in 2019 compared to 56 in 2023. For the Montreal region, the gap goes from 65 days to 51 days.
The low number of properties for sale weighs in the balance. And who would have believed it, young buyers now prefer single-family homes to condos.
“The level of construction is extremely low compared to needs,” observes Charles Brant, director of the market analysis department at the Association professionnelle des courtiers immobiliers du Québec (APCIQ).
The full impact of interest rates is not yet visible in the current market, says the expert.
“There is no catastrophe in sight, financial institutions are there to support households and, at the moment, the job market is extraordinarily strong despite some economic slowdown. These factors ensure that households are able to pay their monthly payments.
“Until when, well, that’s another story again.” We will see how the economy evolves. »
In 2019, sellers in the Montreal area had the best role, while in Quebec, it was more buyers. In 2023, the province-wide market is favorable to sellers.
To everyone’s delight, buyers can finally take the time to browse each room of a coveted property and imagine themselves living there. 30-minute to 1-hour tours are back. The possibility of buying with the legal guarantee – except for inheritances – too. Just like inspections.
“We have returned to this normality of 2019 with a few exceptions,” observes Marc Lacasse, chairman of the APCIQ board of directors.
Exceptional, turnkey properties are still found in multiple promises to purchase, but never as in previous years.
Marc Lacasse also notes that buyers manage their budget better than before. Just because the bank agrees to lend them $600,000 doesn’t mean they’re going to jump on a $600,000 property.
“They do their calculations saying we want to keep traveling, we want to keep going to restaurants and we decided that our maximum was so much. They will compromise by buying a condo or moving away. »
Technology has changed the world of real estate, says Marc Lacasse. “We understood the value of our time. »
He cites the electronic signature, but also the fact that the broker who represents the buyers no longer crosses from the South Shore to the North Shore to come and present his clients’ promise to purchase in person.
Buyers also take the time to analyze photos of properties for sale on the internet and study all the characteristics of the property.
“They will sometimes even go scouting in the car before asking for the visit. It will allow them to see the neighborhood and listen to the environment, because a ‘noisy’ neighborhood does not mean the same thing to everyone,” says Marc Lacasse.