The record, 26 septembre 1990, Supplément 1

mMEwMBlGÊÊO, Wednesday; F26 1000 rrrrrr iiiiiiii ¦•i«ra TATM^ii ¦ i tiaCii rS y, 2 — The Record — Wednesday, September 26, 1990 — Real Estate Supplement The deeds’ business is down, but things will soon pick up again Some restructuring is in the works for local notaries By Jean Potvin SHERBROOKE — According to local notary André Simard, some heads may roll in the local notarial milieu in 1991, but fortunately, the real estate business is slowly picking up again.“Globally, there are too many notaries in the metropolitan Sherbrooke area,” Simard said in an interview Monday afternoon.This glut of notaries hails from the University of Sherbrooke, as students “who have studied in the region for three or four years liked the Eastern Townships so much they decided to set up practice here.” Simard said it takes a pool of 2,000 people to support a notary, but in the Sherbrooke area there are 100 of them in a population of about 85,000.“Some practices are doing well, and others are having problems,” he said.“Nineteen ninety-one will be a restructuring year at the economic level for notaries.Some will hitch up with partners, others will dissolve their partnership, and others will negotiate tighter salaries for their employees,” Simard said.OFFICIAL OPENING F E N Ê T R E S p OI Y C É1 Manufacturées par / Manufactured by FENÊTRES DE L'ESTRIE INC.OPEJLgggg from Monday till Friday ItO ~ Jean Des Rosiers President René Gaétan Plante _ Brochu Vice-President Agent 1 Marc Lefebvre Agent Fernande Leblanc Receptionist THE ONLY u.P.V.C.SPECIALIST IN THE EASTERN TOWNSHIP — Buy directly from the manufacture — First manufacturer of doors and windows in the Eastern Townships — A dynamic team and professional service YOU GET MORE FOR YOUR MONEY — Free estimate SALES — MANUFACTURING — INSTALLATION 4340 Industrial Blvd., Sherbrooke Tel: (81,9) 823-8728 “The notaries are in the same boat as consumers.” THE GST The overpresence of notaries, however, is not the only problem these days.Uncertainty about the goods and services tax and fluctuating interest rates are the fundamental problems afflicting the current bust situation in the real estate, and thus notarial business.“In 1989, there was an increase of up to 18 per cent of residential and commercial property sales compared to 1988,” Simard said.And for 1990, the market recorded a 25 to 30 per cent increase from January to June over the previous years.Then, at the end of June, the bottom fell out of the market.“What happened is that the GST frightened people and they rushed to buy before July 1,” he said.Other help came from the government through relatively high, but stable interest rates, contrary to the expectation that rates were going to drop.” “The increase in the price of oil affected the cost of transportation for materials too,” Simard remarked, “And the combination of all these factors are now dictating a wait-and-see approach from home buyers.” Simard said that despite the GST’s effect of lowering the tax on materials from 12 per cent to eight per cent, the four per cent difference will not be passed onto consumers.“This will create extra inflation, on top of the provincial GST.(The building supplies merchants) will rather pocket the difference since sales are not likely to increase,” Simard said.CAN CUT FEES Since times will remain hard for the remainder of 1990 and a good part of 1991, consumers who purchase property may be able to get some reduced fees from notaries if they compare and shop around.“Originally, there is an established fee that must be respected, a minimum fixed price,” Simard said.But in reality, Simard said over 90 per cent of Sherbrooke area notaries do not respect them, and their Chamber doesn’t do anything about this ‘discounting’.“In certain cases, cuts can drop to 50 per cent off,” he said.The old adage which says ‘one man’s hell is another man’s heaven’ holds true in the notarial and legal business.“The notary’s business volume is inversely proportionate to that of the lawyer.When the economy is healthy, notaries have a lot of work.When it is sick, the lawyer gets the bonanza because there are a lot of trials concerning financial matters,” he said.HOT SPOTS Nevertheless, there are still hot real estate areas in and around the Townships.“These spots are in tourist areas, around lakes, and the Granby area as well,” he said.Compared to Sherbrooke, Granby has many advantages, including that of being closer to Montreal, Cowansville and Bromont.The city also has an overall quality of industrial parks.“The industrial parks of Granby and Bromont are better planned and prepared than those of Sherbrooke and the immediate region,” Simard said.Used houses are selling better than new houses these days because of the price difference.“The price difference betweeen new and older houses is too great.Therefore, people right now are still waiting to have themselves a new house built,” Simard said.PREDICTIONS Simard looked into his crystal ball for 1991.“My predictions for 1991 are based on interest rates and the GST.It will be the year of the decade in which the least real estate transactions will take place,” he said.“Nineteen ninety-one will be the bottom of the wave.” Simard said he believes interest rates will drop one half of one per cent within the next five years.“Consumers are telling themselves rates will drop and we’re waiting,” he said.The difference with the 1982 recession is that back then, rates climbed and everybody rushed to the notary.“For us that was a good recession,” Simard concluded.André Simard expects an increase in the notary and real estate business because of the GST • * « WiK panmiPocTion Participaction The Record — Wednesday, September 26, 1990 — Real Estate Supplement — 3 According to local APCHQ president Normand Fortier, inventories should stay low for awhile Renovations should keep contractors busy in 1991 By Jean Potvin SHERBROOKE — One of the first classic warning signs of a recession is a reduction in inventories, and that is exactly what is happening in the new houses market of the Eastern Townships.“The inventory of new houses on the market is very small,” said Normand Fortier, local president of the Association Provinciale des Constructeurs d’Habitations du Québec (APCHQ).Fortier said his contractor members have reduced inventories and are waiting for more static interest rates.The demand for new housing, as with the rest of the real estate market, has experienced a boom in the first six months of 1990, then went bust in July and August, and is expected to pick up in the last slice of 1990.“It seems that the market wants to go up again.We are expecting an increase in the last months of this year,” Fortier said in an interview Monday.“In 1990 we expected people to have houses built now, and that is what we expect for the months to come, from now to December,” he said.What is currently being built is already sold.RATES WILL DICTATE As to what happens in 1991, Fortier said the interest rate will guide the industry.Unlike André Simard, Fortier doesn’t believe that building supplies merchants will grab the savings offered when the GST comes into effect.“The market will take care of getting the best prices,” he said.“It's true they (building suppliers) talk between each other, but they don t talk all that much.” “The big buyers this year are people who live in apartments and move into homes,” Fortier said.“It should be the same kind of clientele in 1991." The new homes are being built in the region’s hot spots — Fleuri-mont, St-Elie d’Orford and Ascot Township.“People move out to the suburbs because they get the same services as in Sherbrooke,” he said.Sherbrooke has also just about run out of room for new developments.HARD TIMES LOOMING OVER Fortier predicts the coming years will be hard times for local contractors.“It’s going to be tough in 1991.Contractors will have to be more cautious,” he said.“The new house market will drop, but renovation will take over.” When renovation time approaches, Fortier suggests owners miL,,,, L! ! ill! t H i 141 it I j iMmi.rnw— umiifWPpgs 111 111 Fortier said this building would have mode a better Congress Center, adding a tower and other decorations.Besides, there is more parking.choose contractors who are accre- Fortier added that he had a solu- Congress Centre because the old dited in the APCHQ Estrie’s Reno- tion for the former Lowney’s plant, plant is bigger, and is located at the vation Warranty Program.“This but he was too late when he propo- crossroads of Sherbrooke’s main way they have a recourse,” he said, sed it.“It was the ideal site for the arteries,” said Fortier.Normand Fortier said contractors will be able to stay busy thanks to the renovation market.ROYAL LePAGE = 2855 King West Sherbrooke Phyllis Courtemanche Phyllis Courtemanche 566-2430 — 563-9834 560 KNOWLTON RD.Ville de Lac Brome (Knowlton) 243-5865 Jacques Vallières arpenteur-géomètre Land Surveyor Hernando's Not-So Hideaway Half in the shade, half in the sun, jet bath, carport, lots of land for lots of fun.A fireplace to keep you cozy worm Upper Speid Street down is a 41/?No sign "For Sale" this bargain betrays.Give a call with your name and number.S.VP.Michael Savage Global Broker Inc.(819) 566-4700 4 — The Record — Wednesday.September 26, 1990 — Real Estate Supplement GST, native crisis and Meech all affected the bust By Jean Potvin SHERBROOKE — Not only did notaries go through hard times in July and August, but according to Marcel Testulat, president of the Estrie Real Estate Chamber, local real estate agents went through a nightmare.“July and August were really rotten months this year,” Testulat said in an interview Monday.He is also director of the Sherbrooke A ROY, BOISCLAIR, COTÉ, PERREAULT AND ASSOCIATES Quebec Land Surveyors La Groupe Tefcnika Michel J.Côté, q.I.s.rés.: (819) 563-1328 150 Vimy Street North Sherbrooke (Quebec) J1J 3M7 Phone: (819) 565-8131 Fax: (819) 563-3663 Other offices in: Magog East Angus Coaticook Reurimont It you need • QUALITY CONSTRUCTION MATERIALS • QUALIFIED COUNSELLORS • WE SPECIALIZE IN QUALITY AND SERVICE EVERYTHING FOR YOUR CONSTRUCTION NEEDS We manufacture roof trusses Come to: wrtktmiaitlftioict 964-8841 g