In the heart of Québec, where history and modernity intermingle, a new challenge is surfacing in the real estate landscape: The escalating cost of construction.
As this trend continues to reshape the market, homeowners with unrenovated properties may find it increasingly difficult to attract buyers. In this changing environment, the role of skilled real estate agents becomes paramount, connecting the right buyers with homes that are ripe for aesthetic, value and transformations.
Québec’s real estate market is experiencing a surge in many of the costs associated with construction: This is a phenomenon not unique to the province, but one nevertheless significantly affecting market dynamics.
Factors such as material shortages, increased labor expenses, permitting and regulatory hurdles, are driving construction costs to unprecedented heights.
There was a time when you could hope to build or renovate for $200/SQFT, or $300 maybe. Today, some designers and architects will recommend that you budget $350-400/SQFT for a « standard » renovation. Which means you could spend up to 1M to renovate an average 2500 SQFT sized home.
This phenomenon particularly impacts the decision-making of potential buyers, creating a dilemma for homeowners with unrenovated properties.
Unrenovated homes, once a blank canvas for buyers seeking a creative project, are facing new challenges prior to sale: As construction costs rise, buyers are increasingly wary of investing in properties that require substantial updates.
The allure of a “fixer-upper” is being overshadowed by the uncertainty of the actual investment required to turn such a property into a comfortable modern home, attractive for life, and by extension, for re-sale at a profit.
This shift has led to a unique dynamic in the market: Properties that have undergone renovation projects tend to attract more attention, and to command higher prices, as buyers perceive them as move-in ready, and hassle-free.
On the other hand, unrenovated properties can linger on the market, necessitating downward price adjustments and, in some cases, difficulty finding interested buyers.
Enter the skilled real estate agent: An essential partner in this evolving landscape.
Navigating the intricate realm of real estate requires an agent who understands the markets’ nuances; one who can accurately assess property values; and, one who possesses the negotiation prowess to present unrenovated properties in their best light; experienced agents like Mark-André Martel and his team, with an innate (through years of life and practice as a local) understanding of the market.
Whether selling or buying, contact Mark-André to begin to get a handle on your next big decision.