MARKET UPDATE – YEAR IN REVIEW Jan-Dec 2021 vs. Jan-Dec 2020
To say that 2021 was an extraordinary year for the West Island residential real estate market would be an understatement. There have been so many confounding factors at play which have made it difficult to wrap our heads around at times.
We've been experiencing strong price increases in our market for more than two years now, and home values are likely going to continue to increase well into 2022 and possibly beyond. We believe the primary driving force behind this is lack of inventory. The chronic supply shortage of affordable housing is naturally driving prices upward, as competition for those homes becomes increasingly fierce.
Let’s look at Pointe-Claire for example. The median sale price for a single-family home increased from $558,000 in 2020, to $684,000 in 2021. That’s a 22% increase! The number of homes for sale were down by more than 30%, but the number of actual sales only decreased by 9.5%. It’s hard to keep up with any market that moves at this kind of a pace.
We also see more and more emerging buyers entering the housing market as the "millennial" generation are starting new families and newcomers to Canada look desperately to secure a home. Quebec's strong economy, healthy employment trends, and yes, even the rise of a new COVID wave, may all help contribute to another bustling real estate market next year.
“While the emergence of another COVID-19 variant is disheartening, we can’t ignore its probable impact on our nation’s real estate market,” said Phil Soper, president and CEO of Royal LePage. “It is hard to imagine that the Bank of Canada will begin the inevitable campaign to dampen inflation through higher rates with much still to be learned about Omicron and cases on the rise again. Employers may back-off plans to mandate a return to the office, sustaining the hyper-focus on the importance of the home as a place to both live and work. And, normal travel and entertainment will again be curtailed, continuing the household cash stockpiling trend that has defined the pandemic era.”
We believe Soper hit the nail on the head there. Our homes have never been more important to us, as we and our families are forced to spend more and more time confined to them! Greater importance means greater value, both intrinsically and monetarily. Therefore, we anticipate another exciting year in the West Island market.
If you’re curious to know the statistics for any other local municipality, please let us know and we’ll be happy to provide you with that information.
If you or someone you know is thinking of buying or selling real estate this year, and could use some solid advice and guidance... please don't hesitate to reach out to Team Broady for help. You can find us at www.teambroady.ca, by email at email@example.com, or by phone at 514-613-2988