The average value of chalets and holiday homes in Quebec has increased by 73% in 10 years, while the number of properties of this type has fallen by 11%, according to data from the Institut de la Tourisme du Québec (ISQ) compiled by La Presse.
Published at 1:32 am. Updated at 5:00 am.
“The rush for leisure real estate is coming to an end,” real estate brokerage network Royal LePage predicted in late March, announcing that Quebec would be the hardest-hit province with a price drop of 8%, or almost double the Canadian average (-4.5% ).
“It’s clear that things aren’t going exactly as we planned,” realtor Éric Léger of Royal LePage Humania admitted in a telephone interview this week.
Instead of falling, recreational property prices continued to rise, up 2% year over year, he estimates.
The price drop expected in the spring reflected a survey conducted in the first three weeks of March among 202 brokers operating in recreational areas across the country.
Recreational properties used to be considered luxury items, and when there was an economic crisis, they were the first to be sold. A lot has changed since the pandemic. The other thing is the shortage of real estate: there is less inventory than expected on the market.
Éric Léger, broker, Royal LePage Humania
Demand has increased with the pandemic. Teleworking enthusiasts are now joined by retired or semi-retired baby boomers for whom living in a recreational region has long been a “dream”.
“As long as the supply of real estate does not increase significantly, I believe that we will remain fairly stable in terms of prices. »
Other affected regions
Since 2014, the standardized average* taxable value of vacation homes and second homes has exploded, rising from $101,225 to $175,023, a jump of 73%, ISQ data shows. In the 10 most dynamic regions we saw increases of 100% to 200%.
Not surprisingly, this list includes MRCs from Estrie, including in third place Brome-Missisquoi (+151%), which includes municipalities such as Sutton and Bromont.
“It has been more than a year since there were statistics outside the Richter scale in the Bromont region, among others,” confirms Mr Léger.
This list also includes regions of Montérégie, first of which is the MRC Les Jardins-de-Napierville (+ 207%).
In this very agricultural MRC, “the prices of all developable land in non-urban areas have exploded,” explains Norbert Legros, accredited valuer at the Fédération québécoise des municipalities (FQM). In Saint-Édouard, “many properties were sold that had sold for $10,000 three to four years before.” [désormais] $100,000 to $120,000,” says Mr. Legros.
“This applies not only to Jardins-de-Napierville, but throughout Quebec. We see the trend everywhere! »
From Brossard it only takes 15 to 20 minutes to get to Saint-Édouard, he emphasizes. “We have seen it almost everywhere in recent years: properties in areas outside the villages are selling at increasingly higher prices. »
Even in Témiscamingue
The prefect of the MRC of Témiscamingue, Claire Bolduc, was not surprised to see her territory on the second step of the podium, with a 158% increase in the average value of chalets over the last 10 years.
From Montreal and even more so from Quebec, people find us far away. But we’re four hours from Toronto. For the very wealthy population of Toronto and Barrie, very close to Toronto, Témiscamingue is a holiday destination of choice.
Claire Bolduc, Prefect of the MRC of Témiscamingue
The lack of heat waves and the “very rich natural environment” with its “7,500 lakes and rivers” are attractive, and waterfront land is cheaper there than in Ontario, where it has become unaffordable.
“People are walking around making offers on properties they would like to buy,” even if they are not for sale, the prefect says. She cites the case of a house in Saint-Édouard-de-Fabre that is in a row but whose property overlooks a lake and which became a holiday home a few years ago.
The threat of gentrification was even a topic of discussion at a meeting of MRC elected officials.
“All the better for those who sell [leur propriété], we cannot condemn or criticize, but once we have said that, how do we do it, all together, so that local people continue to have access to their living environment? », Raises Ms. Bolduc.
Where have the chalets gone?
There are almost 17,000 fewer vacation homes and cottages in the province than there were 10 years ago. A trend going against the grain, as the number of single-family homes, condominiums and multiplex apartments has increased. In fact, second homes have not disappeared from the landscape, but have changed their category.
“If you have a chalet that becomes a permanent residence and it is located in a residential area, it becomes a residence and not a chalet,” summarizes assessor Norbert Legros.
“We see this a lot these days,” notes FQM President Jacques Demers. As prefect of the MRC of Memphrémagog and mayor of Sainte-Catherine-de-Hatley in Estrie, he sees owners of “more magnificent, larger second homes”. [que leur résidence principale] and on the edge of a lake » decide to live there full time.
In his MRC, where more than half of municipalities are in the process of reshaping their role, “the ratings show an increase of between 60% and 80%, which is huge”.
Increased land wealth represents “collective strength” for a community. However, it can lead to debate when second home owners generate a larger share of tax revenue. “When we decide to build a community center, an ice rink or similar investments, they say: ‘We’d rather not pay for that,’” explains the President of the FQM.
Municipalities have therefore changed the funding of certain services, such as the police, by exempting them from general taxation and instead charging them on a “per door” basis. Every owner then pays the same price for this service, regardless of the value of their property.
“For example, if there are very large gaps between lakeshores and other residential areas, there are all sorts of formulas. There are municipalities that have different incomes. »
* A municipality’s standardized property values for a given fiscal year reflect the values determined in its assessment list, multiplied by a comparison factor established for that fiscal year. Source: Compilation by the Quebec Institute of Statistics, based on data from the Ministry of Municipal Affairs and Housing (summaries of the role of municipalities in property valuation).