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/.
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