WEST ISLAND MARKET UPDATE Jan-May 2021 VS. Jan-May 2020
The real estate statistics have just been published for the end of May 2021... and once again, the numbers confirm what we already knew.
The market still shows no signs of slowing down!
We have significant median price increases across the board for single-family homes in the West Island. Dorval is at the low-end of the gains with a 20 percent increase over last year, while Île-Bizard / Ste-Geneviève and Sainte-Anne-de-Bellevue are topping out at 46 and 47 percent increases compared to the same period in 2020.
Now, keep in mind, the real estate market came to a near halt during the months of April and May last year, but the drop in activity had little effect on cooling prices. If anything we've only seen the market shift into an even higher gear since things started to pick up again last June.
One of the biggest reasons for this continued upward pressure on home values is the sheer lack of inventory. As you can see from the statistics most West Island boroughs currently have about half as many homes for sale as the same period last year. People just don't seem to be selling right now, and those who are, are benefitting immensely from the fierce competition out there.
A recent report published by JLR titled "Impacts of the Pandemic on the Mobility of Buyers in the GMA" had this to say about the increasing demand for West Island real estate:
"Many households have decided to rethink their home choices due to the disruptive nature of the pandemic. Single-family homes outside of the densely-populated urban areas have gained popularity due to the high demand for larger, more open spaces."
We couldn't agree more. But how long is this going to last? Is there a cool-down on the horizon?
We suspect there might be, although the numbers are still indicating the contrary. However, as one of the most active real estate teams working on the West Island, we have our finger directly on the pulse at all times. We can therefore get a better read on things without having to wait for the statistics to come out in another month from now.
We've had a few recent listings where the activity was rather disappointing considering all the hype we keep hearing about how hot the market is. We have to continuously set realistic expectations for our sellers by reminding them that not every home will sell in a bidding war with 17 offers for $100,000 over the asking price. But those are the stories the media loves to feed us, and this can sometimes be misleading for buyers and sellers alike.
For example, we just listed a property at a very competitive price in a great location in Pointe-Claire. We expected to have buyers lining up down the street! Instead, we only had about a dozen visits during the first week on the market, and when it came time to submit offers, we only received two. One of the two offers was well below the asking price, while the other was well above. Our seller gladly accepted the higher offer but was humbled by the fact that the only other interested buyer for their home made them a low-ball offer.
These are the subtle signs that tell us that perhaps things might cool off in the not-too-distant future. Then again... they might not!
In the meantime - make sure you're doing your homework and never hesitate to reach out to our team for advice and guidance. Enjoy the nice weather!