How do you sell a home in the epicenter of a pandemic?
The outbreak of coronavirus has left many in the real estate industry asking the key question as the normally robust spring market kicks into gear.
Low interest rates, a decline in new home listings and sellers’ willingness to come down on price have allowed the market to pick up some steam in recent months.
But concerns over coronavirus are causing people to limit their exposure to large gatherings and strangers, such as open houses, even amid favorable market conditions for buyers.
Real estate experts face unprecedented challenges as New York state declared a state of emergency last week and the National Guard deployed to a one-mile containment area in New Rochelle due to coronavirus.
Yet the experts so far maintain that it’s too early to tell how these events will affect people’s ability to sell their homes in the spring market.
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Those interviewed by The Journal News/lohud say the outbreak came to Westchester County during a bull run for the single-family real estate market. And while it is too soon to tell the true effect of the virus, sellers and buyers are already taking safety measures.
“When consumers process uncertainty — just like they did with the [state and local tax deduction cap] — is (when) we see a slowdown in activity,” said Jonathan Miller, of real estate appraisal firm Miller Samuel. “The problem is that you have consumers that are motivated by the drop in rates and then you have others that want to wait until they’re comfortable. So it’s not a sure thing.
“What we’re seeing in the city … is a slowdown in inventory coming to the market,” he said.
As a result of coronavirus, Miller said the local real estate market may see a slowdown similar to 2017 when the Tax Cuts and Jobs Act limited state and local tax deductions to $10,000.
But the CEO of Miller Samuel said coronavirus and the low interest rates may prove beneficial to buyers this year.
Sellers in Westchester, he said, have had to come down on pricing in recent years to meet the new market expectations. And the potential reduction in inventory due to the virus, coupled with favorable interest rates, may push sellers already in the market to consider further discounts.
Leah Caro of Bronxville-based brokerage firm Park Sterling Realty said new listings have slowed in the county, but the coronavirus frenzy has been offset by an early start to the spring market this year.
“Normally, we see the uptick in the listing inventory beginning in February but really peaking in March and April, which we still may see,” Caro told The Journal News/lohud. “But people weren’t waiting in the wings to bring their properties on.
“We have had one seller who was scheduled to bring her home onto the market next week push that back because of her concern about corona,” Caro added. “She’s planning to sell, but she just wants a couple more weeks to see where this goes because she doesn’t love the idea of having multiple strangers in her property. And she does fit one of the demographics of being more vulnerable.”
New Rochelle a different tale
The single-family market in New Rochelle tells a different story.
Michele Silverman Bedell of Silversons Realty said she’s hopeful the containment zone will not be active after March 25.
Silverman, the seller’s agent for a 2,300-square-foot home within the containment zone, says her listing at 15 Ranger Place is still drawing potential buyers.
However, concerns over coronavirus have led her to cancel an open house for the property this Sunday.
According to the Hudson Gateway Association of Realtors, five homes within the containment zone are still planning to host open houses this weekend.
Kate Mercado, a resident of New Rochelle and a broker for Julia B. Fee Sotheby’s International Realty, said the city’s single-family market is experiencing a drop in casual buyers while seasoned buyers see an opportunity.
“We’re seeing people who know that they want to be in New Rochelle,” she said. “It could be a great time for them to sort of take advantage of other people who may not be coming out to explore right now if they’re nervous about, you know, the virus being sort of centered near us.”
The New Rochelle market experienced a drop in median sales price, new listings and closed sales in 2019. The market saw a reduction in new listings of 12.5% over 2018, while median sales price decreased 1.5% to $675,000, according to HGAR.
The association of realtors reported condominiums and co-ops in New Rochelle saw a growth in median sales price by 21.7% and 4.6%, respectively. The median sales price for condominiums was $522,000 while the median sales price for co-ops in the city was $160,000.
Tailwinds for mortgage banking
The Federal Reserve’s cut of interest rates last week is expected to prop up the local real estate market despite concerns of coronavirus. Experts interviewed by The Journal News/lohud said the cut to interest rates will help drive some traffic even while sellers and buyers are wary of open houses.
According to the Mortgage Bankers Association, mortgage applications increased to the highest level since April 2009 last week.
The association said it expects the cut in interest rates to increase overall mortgage and refinances this year to $2.61 trillion — an increase of 20.3% over total originations in 2019.
“Market uncertainty around the coronavirus led to a considerable drop in U.S. Treasury rates last week, causing the 30-year fixed rate to fall and match its December 2012 survey low of 3.47%,” Joel Kan, MBA’s VP of Economic and Industry Forecasting said. “Prospective buyers continue to be encouraged by improving housing inventory levels in some markets and very low rates.”
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
