Montreal Real Estate Market 2013… Buyer, Seller, Balanced ?
Several studies recently out whether Montreal Real Estate Market 2013… Buyer, Seller, Balanced ? The catch with these type of studies is that it is a big average that does not distinguish between types of property, location, price ranges, size, number of bedrooms, parking, design, flow, materials, etc. The current problem is that the product offered does not fit with what the demand is looking for. I can assure you that a three bedroom condo for sale in Old Montreal smaller in size thus allowing to maintain a more affordable price or a duplex in good condition with good revenues on the Plateau or even a house in Outremont for under 1.2 M$, are still in a sellers market for these types of products.
Sellers are offering resale properties that require minimal work because the majority of buyers do not want to get into renovations or repairs, they want turnkey properties. If it were a buyers market, prices would go down, we are rather in a proportional market. Sellers are trying to sell but are not obligated to sell, it is a big difference. Many sellers are not real sellers, they are trying to sell because they feel they need to burst a bubble that does not exist. The big problem lies within the Regie du Logement which does not follow or take into account the reality of acquisition costs, renovations and repairs, taxes, etc in the permitted annual increases.
Many owners of investment properties are trying to resell their properties as they are disillusioned as to being able to rent their properties and make a profit which would justify their investment, but are not finding buyers because it is not profitable. If amateurs stop improvising by investing and buying into anything thinking it will be profitable, the market will remain proportionate. 2012 was a record year in the new condo market…what will likely be the best year after 2012? 2013…so still excellent statistics for the new condo market.
Prices will hold firm if amateur developers and contractors withdraw from the market now that they realize that being a developer and a contractor cannot be improvised. It is an art, a profession for which its expertise takes years of experience to master all that it comes with.
By the way if we are in a buyer’s market is not the time to buy?