Montrealers are pushing up the costs of real estate in the regions

A study released Wednesday by JLR Financial Solutions, an Equifax company, shows, with supporting figures, that the COVID-19 pandemic has caused an exodus that has driven up sales and prices of primary residences and secondary outside the metropolitan area. Thus, the proportion of Montreal buyers in the region increased by […]

A study released Wednesday by JLR Financial Solutions, an Equifax company, shows, with supporting figures, that the COVID-19 pandemic has caused an exodus that has driven up sales and prices of primary residences and secondary outside the metropolitan area.

Thus, the proportion of Montreal buyers in the region increased by 5 percentage points between the first period studied (the period prepandemic from August 2019 to April 2020) and the second (the pandemic period from August 2020 to April 2021).

No region has been spared, but some of them have seen a more marked increase. In Mauricie, for example, the proportion of buyers who declared a residential address in the census metropolitan area (CMA) of Montreal doubled, from 10% to 20%.

This exodus is explained, among other things, by teleworking and the appeal of the great outdoors, advances the firm JLR, which also evokes the low interest rates, the growth of the average income, the high savings rate and the increased importance of housing in times of confinement.

Montrealers pay more

The study published Wednesday also reveals that Montreal buyers generally pay more than local buyers to acquire a property in the region.

In Estrie, for example, Montrealers who bought a house between August 2020 and April 2021 paid a higher median price of $ 85,000 than that paid by other buyers in this region.

This phenomenon can be observed in all regions of Quebec, write the authors of the report, with the exception of the Côte-Nord and the Outaouais.

Is that Montrealers generally have higher budgets for the purchase of a house in the region, since the average salary of teleworkers in the metropolis usually exceeds that of the local population, analyzes the firm JLR.

Often, they also opt for resort properties by the water or near the mountains, who sell for higher prices than neighboring areas, we observe.

Will the trend continue beyond the pandemic, while the vaccination of Quebecers suggests a certain return to normal in the coming months?

Without committing themselves, the study’s authors believe thatas the pandemic ends, some may miss the vitality of major centers and that others may wish to move away from their chalets when it becomes safer to travel.

That said, teleworking or the combination of teleworking and office presence should remain more popular than before the health crisis, which will further promote demand in the regions, sees the firm JLR.

Meanwhile, property values ​​in the Montreal area continue to rise, according to the most recent statistics provided by the Professional Association of Real Estate Brokers of Quebec (APCIQ).

The median price of single-family homes climbed 34% in May to $ 496,000, from $ 370,000 a year earlier, while that of condominiums climbed to $ 365,000, up 30% from the previous year. median price of $ 280,000 as of May 2020.

Janelle B. Smith

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