A real estate bubble?
Mont-Tremblant’s real estate market is in heavy growth mode, but is it a real estate bubble?
This question is often asked of real estate agents. I can’t answer for the others, but here’s my sense of things. First off, my short answer would be “no”.
My long answer would be as follows. It’s certainly true that the real estate market is going great guns. Properties remain on the market for a short period of time, but I still don’t think it’s a bubble, the reason being that most buyers are Canadians.
However, the Mont-Tremblant market has always had foreign – non-Canadian – investors. Here, from my perspective, is a portrait of the major periods of the Mont-Tremblant real estate market and its buyers.
1993 to 2008 (15 years): three types of buyers
- The Canadian buyer acquiring a secondary residence (40 %)
- The Canadian buyer acquiring an investment (who wants revenue) (40 %)
- The foreign buyer (20 %)
2008 to 2015 (8 years): one type of buyer
- The Canadian buyer acquiring a secondary residence (100%)
And since 2016 (3 years): two types of buyers
- The Canadian buyer acquiring a secondary residence (50 %)
- The Canadian buyer acquiring an investment (who wants revenue) (50 %)
Since 2016, Tremblant has pretty much become what it always wanted to be: a four-season resort. I like to say that Tremblant has grown up.
Our town is now known around the world and people come here year-round. This has increased revenues and investors are therefore back.
On the other hand, not a trace of the foreign investor. Which is not the case for large cities of the world or of Canada. As a result, the Mont-Tremblant market is doing very well with only Canadian purchasers.