The most dramatic increase was the median price of a two-storey house in the greater Montreal area, which rose 8.7% this quarter to $ 566,874, according to a recent Royal LePage study. . A bungalow will cost $ 351,889, up 7.2% from last year. And while the availability of condos increased in June, increased demand pushed prices up 5.6% year over year.
“Given the offer [before COVID-19], it would take 3 months to sell all the homes, “said economist Francis Cortellino of the Canada Mortgage and Housing Corporation. He says that high demand puts buyers at a disadvantage, with few bargaining power. “We are in the market of a seller,” he said.
“In my 18-year career, I have never seen such a close ratio between the number of active registrations and sales,” said Dominic St-Pierre, Royal LePage vice-president for Quebec, in a press release Thursday.
Experts agree that the supply of housing was tight after COVID-19 halted residential construction in the province. “Many of these projects are behind schedule,” said Georges Gaucher, spokesperson for Royal LePage. “Deliveries will be late. ”
In June, more than 40,000 homes were under construction in the province, a distant third in Canada, with Ontario more than double that number of projects underway. In Quebec, only 11% of these projects will become fully semi-detached houses, the vast majority being apartments.
Although condos remain popular in Quebec, single-family homes are favorable to buyers, according to Gaucher. “Think of the standard bungalow,” he said. “We are far from the demand we have.”
COVID-19 could have the opposite effect for those looking to rent. Cortellino says switching to online university courses could reduce net migration, opening rental housing in a city where vacancy rates remain around 1.5%, a 15-year low.
Expert prices are expected to decrease after the COVID rush ends, but long-term increases are inevitable. Overall prices are expected to increase by 3.5% by the end of 2020, compared to last year.