Real estate overheating: the main cause is the lack of properties

The Quebec Professional Association of Real Estate Brokers (QPAREB) recently released a major study on the real estate overheating experienced in the province in the context of the pandemic. This document, which notably contains an in-depth economic analysis of the causes of the boom in the real estate market, was submitted to the Quebec Minister of Finance in the context of the public consultation initiated by him.

With the work of brokers sometimes being wrongly blamed for the rapid rise in property prices, the QPAREB analyzed the underlying context that really led the market to such a great imbalance. It also identifies a series of factors arising from the context of the pandemic that contributed to exacerbating the situation and creating what might be called a perfect storm, where supply was clearly insufficient to meet spontaneous demand.

In addition to unequivocally demonstrating that the real estate overheating was caused by unprecedented demand combined with insufficient supply, the QPAREB's brief also explains in detail why the work of brokers cannot be blamed to explain the increases in substantial prices and the phenomenon of overbidding.

In response to the five questions on the practice of real estate brokerage asked by the Minister and in light of recent issues, the QPAREB proposes in its brief numerous recommendations aimed at better informing and protecting buyers and sellers during key stages of a real estate transaction.

The brief (in French) can be read in its entirety by clicking here.

Source: QPAREB press release

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