RISING PRICES CREATE DILEMMA FOR SELLERS
It’s tempting for West Island homeowners to try and cash in on the hot real estate market, but the low supply and rising prices create something of a dilemma for sellers. Although they may be able to make a good profit on the sale of their home, some are hesitant to sell because they’re worried they won’t find a better place to buy.
That’s exactly the conundrum Lily-Anne Lauzon has found herself in. She and her husband are ready to sell their large waterfront home in Baie-D’Urfé, but despite receiving two good offers over $3 million in the last year, in the end they didn’t accept either because they didn’t have a place to move to.
“We want to go to a townhouse or something like this, but everything goes higher and higher so fast now,” said Lauzon. “A house we could buy a year ago for a million and a half is now $2 million. It’s a big difference in a short time.”
For three years, Lauzon searched for a smaller lakefront home in the West Island, but after being outbid on the few suitable properties she found, she is now moving her search to Westmount.
According to the Quebec Federation of Real Estate Boards, there was a 16 per cent drop in active listings in the Montreal area in the first quarter of 2018, compared to the same period last year. In the West Island, listings were down more than 30 per cent. Realtors say there’s a couple of factors at play. For one thing, unless they’re downsizing to a smaller home or moving to a less-expensive neighbourhood, sellers can expect to pay as much or more for their next home. When the costs of moving, land transfer taxes, realtor fees and other expenses are factored in, some would-be sellers discover they’ll lose money if they move even if they make a good profit on the sale of their home.
Realtor Barbara Baudinet said with the market going up, she has a number of clients like Lauzon who are holding off on selling because they can’t find a place to buy.
“I have more and more clients who say they’re going to stay put because they don’t know where they’re going to go,” Baudinet said. “There’s very few locations for people who have been living in beautiful homes to downsize to.” West Island Living is a column by St-Lazare resident Briana Tomkinson. To share your thoughts on local real estate, email westislandliving@gmail.com.