Real estate is at the heart of Quebec’s economic recovery. Many people have decided to become homeowners for the first time, while others have bought cottages or second homes in the countryside. How can we explain the popularity of home buying during the COVID-19 crisis? We have a few clues.
Low interest rates
Interest rates are at record lows. Never before have they been so low! Market interest rates are directly linked to the Canadian central bank’s key interest rate. This rate is adjusted according to various economic parameters. As the economy is slowing down due to the pandemic, the Bank of Canada is encouraging transactions by offering a lower rate. On a large sum such as a property, the savings in interest costs are substantial. Many undecided buyers have been persuaded to take action.
A safe investment
When the economy is struggling, people tend to invest more in real estate, which has always been seen as a safe bet. There are many advantages to buying property. Firstly, the capital portion of mortgage repayment becomes a kind of forced economy. Secondly, it has been proven that, over the medium and long term, the acquisition of a property provides an excellent return on investment.
So becoming a homeowner often means improving your financial health, even in times of pandemic. Investors need this security when stock markets are unstable.
Teleworking stimulates new real estate markets
The pandemic has proved to many companies that telecommuting is possible for the majority of their employees, and for the long term. People want to get away from the city, and this new model of remote working makes that dream more accessible. There’s nothing to stop someone working for a Montreal-based company while living in the region. Proximity to the workplace or commuting time to the city are no longer as important as they once were. These factors have less influence on the decision regarding property location. Buyers who didn’t have access to expensive city properties can now turn to regional markets that are more accessible to their budget.
Few houses for sale
According to the Association professionnelle des courtiers immobiliers du Québec, there are some 30,000 properties currently on the market for sale. Last year at this time, there were over 40,000. The scarcity of homes and buildings for sale is driving up the price of properties on the market. This is good for sellers, but it also explains the popularity of real estate in times of pandemic. There are more buyers than sellers. If you’re currently looking for a property, working with a real estate broker will go a long way to helping you find that rare gem. The market moves fast, and the advice of an expert will be of great help.
Take advantage of real estate’s popularity in times of pandemic with Jean-Guy Ayotte’s team
Now is the time, more than ever, to put your property up for sale. If you’ve been thinking about it, now’s the time to take action to maximize your profits. In such a fast-moving market, a real estate broker can help you determine the value of your property and put it up for sale at an advantageous price.
Contact us to obtain the fair market value of your property, whatever it may be, completely free of charge and with no obligation on your part. Photo credit: Jordan Bauer