Real Estate Talk:
the hot NDG market
Why NDG properties are in demand and prices rising
By Joseph Marovitch
One of the most in-demand locations on the Island of Montreal is our neighbour, Notre-Dame-De-Grâce (NDG). NDG offers beautiful homes with classic architecture, ample green spaces, lovely parks, and residents do not feel the pressure of the city as much, even though NDG is only one municipality from downtown Ville Marie. It is one of the most beautiful suburbs close to, but not in the city core of downtown Montreal. Similar suburbs are Westmount and Outremont.
There are 51,957 dwellings in NDG yet there are only 39 properties for sale with three or more bedrooms. There have never been so few properties for sale in NDG. On average, a property changes owners every seven years. If there are 51,957 properties, the number for sale in NDG presently is unique.
There are 51,957 dwellings in NDG yet there are only 39 properties for sale with three or more bedrooms. There have never been so few properties for sale in NDG.
In our new normal, the pandemic has caused the real estate market to move up and down quickly. In lockdown, sellers are not eager to place their property on the market for fear of contagion from visitors, as well as all the tedious but necessary precautions that must take place to arrange a visit.
When the last lockdown ended, potential buyers came out in droves to purchase property. With many eager buyers, but few sellers and limited inventory, buyers were all vying for the same properties. The high demand and low inventory caused the prices to rise. Across the island, prices have risen due to high demand and low inventory. Now we are in a 2nd lockdown and the market of sellers and buyers has receded as all wait for the lockdown to end again.
Before the pandemic, prices were rising quickly because the island of Montreal, after 375 years of growth, has limited space to build. Investors were searching the suburbs such as Hochelaga-Maisonneuve, Kirkland and Vaudreuil to build. Foreign investors were also searching for Quebec property due to the financial stability offered here, compared with the U.S. and Europe.
In any country, the most sought after property that rises quickest in value are suburbs close to downtown cores. Therefore, areas like Westmount, NDG, Montreal West and Outremont, being the closest to Ville Marie, yet not in the thick of it, have the most potential for resale value.
The pandemic will cause the market to ebb and flow, and the limited space on the island will cause prices to rise, slowly or quickly, but prices will continue to rise. During the pandemic, many residents prefer to sit tight and wait it out before placing their property on the market. This means that inventory will remain limited while buyers still must buy since they must live somewhere. This makes for a seller’s market.
‘In any country, the most sought after property that rises quickest in value are suburbs close to downtown cores.’
With NDG being extremely desirable, yet having so few properties for sale, it means when a three-plus bedroom home comes to market with a price at, or just below, market value, the effect is that several buyers descend on the property, creating a multiple offer scenario quickly. This is the effect in many municipalities, yet NDG has the right balance for this situation. In a multiple offer scenario, it is possible to sell for more than the asking price.
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Next article: Why a seller should update the certificate of location and pre-inspect at the beginning of a listing
State of the market
In a recent Gazette article, one broker stated that everything is selling, and this appears to be the case. Everything that is for sale does appear to be selling. Buyers are buying, but not all sellers are selling. The real estate market favours the seller while inventory and interest rates remain low. It is an excellent time to sell residential property.
In the long term, if one can purchase now, the return on investment should be prosperous. Montreal is still limited in space and nothing can cancel the fact that building new property will eventually come to a standstill causing a reseller market only. This scenario occurred in Hong Kong, Paris, New York and Rome and it will occur in Montreal. The pandemic can slow the process down but it will not stop prices from rising.
‘The real estate market favours the seller while inventory and interest rates remain low. It is an excellent time to sell residential property.’
In the meantime, wear a mask, wash the hands, and maintain a distance so that any of this will matter.
Have a great week, stay safe!
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Other articles by Joseph Marovitch
Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible for, Joseph applies this to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or email@example.com
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