How the pandemic has changed Montreal real estate
02 Oct 2020
Selling your home in the middle of a pandemic may seem stressful, but the thought of going through a long winter lockdown in a home you’re unhappy in can feel unbearable. When you can go from long lunches on pop-up terrasses to living in lockdown in the space of a few days, it’s clear: there’s no time like now to do the things you dream of.
This sharpened sense of urgency is spurring many Montrealers to make big life changes. More and more, urbanites are trading chic city condos for country homes and springing for cozy chalets in cottage country, realtors say.
How the pandemic has changed Montreal real estate
Others are taking advantage of low interest rates to finance upgrades to their homes, or buying bigger and more luxurious properties with more space to live, work and play.
Yet the number of homes on the market remains at a record low. The result is a dynamic market — almost manic, Engel & Völkers broker Patrice Groleau said.
“The market is just insane. We’re breaking records. We’re not sitting on any properties, we’re selling everything. If it is well-priced, we are selling it,” Groleau said. “People want to live now. People dream about having a chalet or to buy a new house. They say, ‘We don’t know what will be tomorrow’.”
Prices are rising so fast that sales from more than a month ago are no longer suitable to use as comparison when pricing a home, said Broady Windsor Group broker Sean Broady. In his 20 years in the business, he says he’s never seen anything like it.
“It is hotter than I have ever seen, with multiple offers on almost everything,” he said.
In this market, sellers hold all the cards. Open houses are rare, due to COVID concerns. As Montreal enters the second wave, vendors are demanding proof that buyers are serious before they open their doors. Buyers may be required to show proof of a mortgage pre-approval. In some cases, sellers are even requiring that buyers make an offer before visiting the property in person, Broady said.
All of Broady’s listings include an inspection report provided by the seller, which buyers are given along with the seller’s declaration before booking a showing. Listings now not only include professional photographs, but often also virtual tours or video walkthroughs, floor plans or 3D illustrations of the layout.
“It gets rid of the tire-kickers,” Broady said. “If you book a visit after that, you’re extremely serious.”
In one of his recent sales in Beaconsfield, almost half of those who visited the property made an offer on it. Because showings were limited only to serious buyers who already knew detailed information about the property, eight of the 15 visitors put in an offer. The home sold for $940,000, $41,000 over asking. Another of Broady’s Beaconsfield listings sold for $1 million cash, after 20 visits. There were five offers.
Another thing that is different today compared with the pre-pandemic market? Fewer foreign buyers. While there are still some international shoppers who are buying online, travel restrictions have cooled interest from overseas, Broady said. Pandemic-related travel restrictions are also leading some families to sell their homes in Canada because they are no longer able to freely return overseas.
In another case, a buyer from China pulled out of a $1.8-million deal at the last minute due to COVID-19, Broady said. Because the buyer was not in Quebec, recourse was impractical for the seller and the property was put back on the market. Stories like this have prompted another change: many sellers are asking for sizeable deposits to discourage buyers from walking away from a done deal.
In an uncertain world, sellers want all the certainty as they can get.
