Due to concerns about the weak economy, the Canadian Central Bank decided to unexpectedly lower its key interest rate by 50 basis points on October 23, from 4.25% to 3.75%. This reduction in the interest rate may be a positive development for potential homebuyers, as it could lead to increased demand for real estate. However, the influx of new buyers on the market could also have a negative impact, as it may drive up prices.
While the interest rate cut may be good news for sellers as it could increase demand and lead to more auctions. However, the effects of the rate change may not be immediate and could take some time to fully materialize.
Even without reducing the interest rate, we have returned to a situation where there are multiple offers for the same property. Of course, there are still no offers for well over 100 thousand dollars above the listed price, but it is not unusual to see an offer 25, 30, or even 50 thousand dollars higher if 5 – 6 buyers have expressed interest in the property. This is especially true in the house market. The condominium market, however, is less in demand.
Today, a property worth 500 thousand dollars is the most desired. As a rule, first-time buyers come to me with letters from their bank stating that their future home’s value should not exceed this amount. Houses within this price range simply “fly off the shelf”, selling in the first week. That said, million-dollar homes that meet all requirements and are well-maintained are still in high demand. I have attended several auctions for these properties.
The Association of Real Estate Brokers of Quebec reports that real estate sales in the Montreal region jumped by 43.8% (!) in October compared to the same month last year.
I would advise families planning to buy a house not to wait until March or April for the search to begin. You can start searching for a house right now and make a purchase with a notary in June. However, the choice of a house, inspection, and verification of documents — all this can be done now.
Always ready to help you, Olga Ouspenski, real estate broker with 20 years of experience. Please contact me : +1-514-999-9260, , or here www.OlgaOuspenski.net/.
Récemment, mon amie m’a invité à une promenade et j’ai répondu que je ne pouvais pas aller, parce que j’avais beaucoup de travail. Elle a été surprise :”Et que fais-tu en tant qu’agent immobilier? Enfin, c’est aussi simple que cela: tu montres la maison aux clients et eux, ils l’achètent.”
More recently, finding one’s own property was seen as a rite of passage into a new stage in independent life. That’s also why our ancestors respected peasants: although they may not have been rich, they were masters of their own land. Home ownership does take effort, and adulthood is when a person directs their resources towards the construction or acquisition of a home, its upkeep, providing for their family, and planning for their future. Funds are no longer solely spent on entertainment.
Unfortunately, a lot has changed in recent years. For the past 30 years, society has been divided between two extremes. On the one hand, there is a global elite whose main desire is to feel at home anywhere on the planet, in megalopolises. On the other hand, there are low-income individuals who receive various forms of life support. And what about the people in the middle, the so-called “middle class”? This group is under pressure and does not benefit from the society it helps to finance. Now, it is becoming increasingly difficult for middle-class people to acquire property, which often proves to be simply out of their reach, as it involves financial hardship.
Les calculs d’augmentation des loyers des logements locatifs ont été publiés par le Tribunal administratif du logement du Québec à la mi-janvier 2024. Les propriétaires des logements locatifs du Québec doivent baser leurs augmentations de loyer en 2024 sur ces calculs. Pour les appartements dans lesquels le chauffage n’est pas inclus dans la location ou avec le chauffage électrique, la majoration moyenne de loyer est de 4 %. Pour les appartements chauffés au gaz naturel, l’augmentation est de 3,3 %, pour le chauffage au mazout, elle est de 1,6 %, les prix du gaz et du mazout ayant diminué cette année. Afin de compenser l’augmentation des taxes municipales, ces pourcentages sont augmentés à raison de 0,6 % par tranche de 5 % d’augmentation des taxes. Ainsi, par exemple, si un appartement a été loué en 2023 pour 1 000 $ par mois sans chauffage et que les taxes municipales ont augmenté de 5 % par rapport à 2023, l’augmentation totale du loyer en pourcentage serait de 4,6 %.
Il faut rappeler que le locataire a le droit de refuser l’augmentation de loyer proposée. Et, si vous ne parvenez pas à un accord, le propriétaire peut ouvrir un dossier au tribunal pour fixer le montant de l’augmentation du loyer. Dans ce cas, il doit fournir le calcul et tous les documents confirmant ses dépenses. Si le dossier n’est pas ouvert, le bail est automatiquement prolongé sans majoration de loyer, avec les mêmes conditions que l’année précédente.
2023 ended with a slight decline in sales and home prices in the Greater Montreal area. But the market should recover soon, perhaps at the same time as nature, at the end of winter, experts predict.
This is exactly what realtors observe in their practice. “They have a lot more calls, a lot more visits,” confirms Dominic St-Pierre, vice-president and general manager of Royal LePage, Quebec region. He predicts a “hot” spring market. Which has nothing to do with temperature, he clarifies. Buyers are waiting for real reassurance about the Bank of Canada’s intentions and lower mortgage interest rates. “And even if the decline does not happen now,” adds Mr. St. Pierre, but at least in the near future. Once this is done, we should see a gradual return of life, especially among buyers who have put their projects on hold to wait for these more favorable conditions.