Real estate: Sherbrooke is booming

Real estate: Sherbrooke is booming

Home sales continue to grow in the Sherbrooke market.

Share October 6, 2020 2:50 p.m. Share Real estate: Sherbrooke is boomingReal estate: Sherbrooke is booming

Alain Goupil La Tribune The Sherbrooke real estate market is still going strong. Despite the pandemic and the tightening of CMHC's financing rules, houses continue to sell at a sustained rate in Sherbrooke. So much so that we are now talking about a shortage in certain areas of the city.

And the summer was particularly hot. In just three months, from July to September, 720 transactions were carried out in greater Sherbrooke, an increase of 62% compared to the same period last year, according to the Real Estate Board of Estrie and Center-du- Quebec.

Had it not been for the drop observed in the April-June quarter (due to the pandemic), the Sherbrooke residential real estate market would be in its tenth consecutive increase in sales, underlines real estate broker David Bourgon, co-president of the Real Estate Board. from Estrie and Center-du-Québec.

The spectacular jump of the last three months is partly explained by the pandemic, underlines Mr. Bourgon. “The lockdown we experienced this spring created latent demand that exploded during the third quarter, which translated into more transactions,” he said.

Neither the job losses linked to the pandemic nor the tightening of eligibility criteria announced this spring by CMHC have cooled buyers, says Bourgon.

“It's true that CMHC has tightened its criteria, but with historically low interest rates like those we are currently experiencing, people still manage to qualify. “

Another phenomenon: several transactions take place without prior inspection.

“In a shortage market where several offers are made for the same house, buyers tend to drop certain conditions, such as that of prior inspection. The same goes for obtaining financing. “

As is the case elsewhere in the country, the phenomenon of teleworking is also applicable in the demand observed in Sherbrooke. “We see a lot of Montreal buyers. “

Real estate: Sherbrooke is booming

Real estate broker David Bourgon, co-president of the Estrie and Center-du-Québec real estate board. Photo provided

According to House data, all types of housing have seen strong demand, says Bourgon.

Sales of single-family homes increased by 59% (500 sales), those of rental properties (2 to 5 units) by 25% (75 sales), while those of condos jumped 104% (145 sales). ).

The median price obtained for these types of buildings also increased. That of a single-family home grew 16% to $ 259,000, that of a condo rose 19% to $ 183,750 and that of buildings with 2 to 5 units rose 13%. to come in at $ 295,000.

It should be noted that the increase in sales is mainly due to three sectors of the city: Mont-Bellevue / Lennoxville (+ 38%), Fleurimont / Brompton (+ 50%), and Jacques-Cartier (+ 111%).

“However, we must avoid concluding that home values have risen by the same amount in these sectors. The statistics are mainly attributable to the fact that buyers have flocked to the most expensive properties, which explains this apparent surge in prices “insists Mr. Bourgon.

Unsurprisingly, the effervescence of the market has resulted in a reduction in sales times. On average, it took 89 days, 78 days and 121 days respectively for a single-family home, a condominium and a plex to find a taker last quarter.

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