Understanding the Brome-Missisquoi Real Estate Market
Data through Q4 2022. Figures are for single-family homes in Brome-Missisquoi.
We celebrate the scenic beauty of Brome County for the rolling hills, lakes and forests that make the region a magnet for outdoor activities and tourism. The proximity to Montreal also provides easy access to services and cultural attractions without giving up a relaxed rural life. Brome-Missisquoi is a great place to live, with a strong sense of community, excellent schools, and many recreational and cultural opportunities.
The homes we own in Brome County are not just the centre of our family lives but are probably our most significant financial asset. So if you own a home in Brome County or are looking to purchase one, understanding the dynamics of the real estate market is not just interesting; it is financially crucial. Let's look at how the Brome-Missisquoi market behaved over the last 12 years.
2011 to 2019
From 2011 through to the beginning of the pandemic, the Brome-Missisquoi market showed modest increases from year to year.
In 2011 the average single-family home in Brome-Missisquoi sold for $251,954 after being on the market for 129 days. In 2019, that average house sold for $308,769 after being on the market for 141 days. The average home increased in value by 23% over ten years.
Skew in the Market
The Brome-Missisquoi market is skewed. Most properties are at the lower end of the market, and a smaller number of expensive properties at the high end raise the overall average.
We can tell by comparing the average property with the median property. The median property is at the midpoint between the lowest and most expensive sold. In 2019, the midpoint in the market was $237,000 compared to the average of all properties sold, which was $308,769. A change in the midpoint is often a more representative indication of how the 'average' house has performed in the market.
Pandemic Supercharge
As it did across Canada, the pandemic supercharged the Brome-Missisquoi real estate market. When the chains holding workers to offices broke by work-from-home mandates, many gave up city life to move to Brome County.
Before the pandemic, in the first quarter of 2020, there were 671 single-family homes on the market, and they took an average of 137 days to sell at 96% of the listing price.
By the second quarter of 2022, the market had turned upside down. There were only 208 houses for sale, selling in an average of 51 days and 5% above the asking price.
From $313,089 in the first quarter of 2020, the average house price rose to $667,151 in the third quarter of 2022, an increase of 113%.
2022 Reality Check
With the impact of the pandemic subsiding and continued increases in interest rates, 2022 saw prices rise in the first three quarters and then decline in the fourth. From the third quarter to the fourth, the average cost of a home dropped by $59,689 by 8.5% to finish the year at $604,762.
The Future
Like all free markets, supply and demand drive the Brome-Missisquoi real estate market. During the pandemic, demand increased as people chose a calmer rural life with more space. That desire and low interest rates made mortgages affordable, increasing demand. Supply was limited as few new homes were built and fewer residents were interested in selling. The increased demand, combined with a limited supply, drove up prices.
After the ups and downs of 2022, the real estate market seems to be establishing a new plateau. Barring a force majeure, the only factor likely to change over the next two years is interest rates. There are indications and predictions that interest rate increases are over and rates will roll back as inflation recedes. Whether the rollbacks start now, in six months or even in two years, the Brome County real estate market will likely return to the slow, stable slow growth pattern of the past.
Future articles will examine the individual communities that make up Brome County. Please address questions or comments to don.joyce@royallepage.ca.