More sellers will appear on the residential market by the end of 2023, believe Proprio Direct brokers.
As part of a web survey, 178 of them were surveyed from August 21 to September 6 about their real estate forecasts for the last quarter of the year.
Nearly half of the brokers surveyed expect an increase in properties for sale, in the range of 10 to 14%, for 81 respondents.
“Those with a variable interest rate on their mortgage loan, or those whose loan is coming due, may soon want to redirect towards a smaller and less expensive property,” indicates Philippe Lecoq in a press release, president of Proprio Direct, a Brookfield subsidiary since 2017.
“The aging population, some of whom are turning to rental housing, could also help increase supply,” he adds.
For the rest of the year, 57% of Proprio Direct brokers see stability in house prices. The reasoning being that demand supported by immigration serves as a floor for the price, especially as sellers exercise restraint, which contributes to the scarcity of supply.
According to the Professional Association of Real Estate Brokers of Quebec (APCIQ), the residential market in the Montreal region remains favorable to sellers, due to immigration and despite the increase in rental prices.
Nearly 29,000 properties were sold in the census metropolitan area (of Montreal) during the first 9 months of the year, down 17% compared to the level of activity observed from January to September in 2022 .
“Good marketing, at the right price, will be more and more critical in determining a pool of motivated buyers, less deep and more selective,” said Charles Brant, director of the Market Analysis Department of the APCIQ, last October 5. This is particularly the case for single-family homes, whose prices have practically reached the levels of the last peak of 2022.”
For their part, Royal LePage brokers expect a slight appreciation in property prices between now and December 31. “The aggregate price of a property in the Greater Montreal area will increase by 2.1% to end the year at $587,844,” they say in a press release released Thursday.
“The current market remains slightly in favor of sellers, but is giving way to a more equitable balance of power between buyers and sellers,” explains in this document Marc Lefrançois, certified real estate broker at Royal LePage Tendance in Montreal. The more modest price appreciation is explained by a less obvious eagerness among buyers of high-end properties, increasing the supply of residences priced at $2 million and above. When inflation rises, consumers restrict their spending to immediate and essential needs. If a move can wait, homeowners looking for a property that increases their quality of life will return to the market later. The entry-level segment remains very active, constrained by the lack of inventory. »
