MONTREAL CONDOS ... what is going on?
We have to be weary of the statistics; the reality of the real estate markets is not uniform across the country. It is very important to look at the data closely to see whether the source is Canadian, provincial, regional or municipal. We cannot include Vancouver, Toronto, Montreal and Chicoutimi to establish an average and try to draw conclusions and tendencies from the mix. The results will not reflect the reality of each region.
As for the condo in Montreal, 2012 was a record year; the sale of so many condos had never been seen in the history of the city of Montreal. Obviously, when we compare this year on all points, we cannot interpret the decline as a potential crisis but simply as a return to normalcy.
So what has happened, if the demand has never been greater so as to give the buyers the impression of a slowdown? The answer cannot be more simple. Everyone wants their share of the “Montreal Condo” pie, developers, contractors, investors, real estate agencies, etc.. all have wanted to take advantage of the Montreal real estate peak. Those who were already in place wanted more. Players in neighboring markets such as Toronto, which has slowed down, sensed the situation and found an alternative during the recovery of the markets.
The illusion of ease and windfall profits led to its share of improvised developers, contractors, real estate investors, real estate agents or real estate brokers specializing in projects of new condos in Montreal. As a result? An offer that yet surpasses a demand which is still going strong…
Unfortunately, the end result for most of them is disillusion. Optimistic financial plans, slowing down of the sales velocity, planning errors, bad management, deficient marketing, unskilled and inexprienced sales teams, etc.
A set of elements that will initiate the market to restabilize itself, a transition year where only serious players will remain in place and where improvisation will lead to a loss. In short, a return to a very healthy balance necessary for the Montreal real estate market. Beneficial to the condo industry in Montreal, for the economic stability of the province and the financial security for the largest portion of the nest egg of Quebecers; the answer is always Real Estate!
Buyers must now be more rational. They should buy according to their means and based on their real needs rather than with a perspective of short-term gain and a popular real estate ideal which seem to have been reigning the past decade.
Patrice Groleau, real estate broker and owner of McGill Real Estate Agency specializing in the sales and marketing of new condos in Montreal, is considered one of the most credible & respectable sources by journalists covering Montreal’s new condo real estate market.
For more information on new condos in Montreal visit http://www.mcgillimmobilier.com