Montreal property brokers brace for spring freeze amid lockdown!

Property brokers are bracing for a spring freeze in Montreal after residential sales fell off a cliff in late March following the provincial government’s decision to put Quebec on pause to halt the spread of the coronavirus.

April and May are expected to be among the least active months on record for a spring season since the start of the millennium, Charles Brant, head of market analysis at the Quebec Professional Association of Real Estate Brokers, said Monday. Figures show a “definite slowdown” in the second half of March, the association said.

“In a context where uncertainty about the economic outcome of this crisis is very high, we can expect buyers and sellers to remain on the sidelines,” Brant said in a statement. “However, far from being in a downturn situation, the market will rather be on pause.”

More than 5,900 residential property transactions closed in the greater Montreal area last month, a four per cent increase compared to March 2019. This marked the 61st consecutive monthly increase in sales — a streak that will undoubtedly come to an end in April.

Prices continued to climb, with single-family homes selling for a median price of $365,000 last month — 10 per cent more than in March 2019. Active listings plunged 37 per cent.

For the first-quarter, 14,662 transactions were recorded for a 13-per-cent advance.

Sales — at least until the lockdown was announced — benefited from three consecutive interest rate cuts by the Bank of Canada, totalling 150 basis points. That brought rates to levels that are comparable with those seen during the financial crisis of 2008.

Montreal’s reliance on international trade, as well as its population density, makes it the Quebec region that is most affected by the spread of the virus, Brant said.

“As a result, this market is exposed to psychological stress caused by stricter distancing measures and greater economic uncertainty,” he said.