The prospects are very good, mainly because of demographics such as:
A higher number of single people ,
of couples without children
and baby boomers as well as… interested people in buying condos.
Most condos are occupied by their owners (in Montreal, only 10-15 % of condos are purchased for investment purposes), the market is much less speculative than Toronto, and there is less risk of a real estate bubble. However, there is still a market for those who choose to rent out their condo. There is gradually less housing being built for rental purposes in Montreal, and there is a demand for new and more luxurious apartments. Condos for rent are very popular in the central neighbourhoods.
- Affordability is substantially the same as in the 1980s.
- Trend : the rationalization of spaces, as seen around the world . Maximized areas means better prices. Living environments, with swimming pools, gyms , rooftop terraces , etc. are now being offered. These common spaces become extensions of the condos themselves.
Low inventory of single-family homes records
- Buyers who cannot afford the high price of single family homes turn to condos are the only affordable alternative.
- For first time buyers and investors pre-construction options are the often the way to go given the limited funds and flexible deposit plans offered by promoters .
To summarize the signle-family dwelling situation:
Low inventory | More buyers | Low interest rates | High demand | People ready to negotiate in a multiple offer situation | Higher prices
What are the options for buyers:
- Stay with their parents and wait for a so-called price decrease;
- Rent and pay someone else’s mortgage
- Buying a condo in a trendy sector?
- The majority of new condos come with a warranty, no special long or medium term maintenance fees and medium term expenditure and are being rented at a higher price and at a quick rate. Metropolitan traffic will increase by 25 % by 2016 making the South Shore and North Shore a living hell for drivers who work in the city.
- The population on the island of Montreal is rapidly growing.
- The Committee on the Protection of Agricultural Land put in place a moratory on rezoning of farmlands in Montérégie simultaneously lowering the cost of land on the island and the suburbs while having similar construction costs so … is the cost of housing really more affordable in the suburbs ? Do the math …
If you think that the pressure on increasing prices is over, think again …
McGill Real Estate owner
& certified real estate broker
Patrice Groleau was born and raised in Quebec. He completed a Bachelor’s degree in human resources at the Université du Québec à Montréal, as well as a graduate degree in Entrepreneurship at the Université de Sherbrooke and in Advanced Project Management from McGill University in Montreal. Patrice Groleau obtained licenses in Risk Management from the Université du Québec à Montréal and Canadian Securities from the Canadian Securities Institute, as well as a Real Estate Agent degree and a Chartered Real Estate Broker’s & Agency Excecutive Officer (AEO) degree from the Collège de l’immobilier du Québec.
Member of the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) and of the Greater Montreal Real Estate Board, Mr. Groleau also has a solid background in finance, having worked for several major financial institutions.