I finally got numbers for real estate sales in October 2022, so I can look at what is happening in the Montreal real estate market and the surrounding area.
House prices have been dropping, as they usually do in the autumn, after the end of the spring and summer home buying season.
However, the market is still in favour of the sellers. Unfortunately, the choice of good houses in good areas of Montreal and on the South Shore (Longueuil, St-Hubert, St-Bruno, etc) remains poor. Detached houses no older than 30 years, are sold in Longueuil for more than $600000, in Montreal – $800000 and more.Compared to October last year, prices for single-family houses in Quebec have increased by 9%, and for 2-plex and 3-plex by 21%. But this is already lower than prices were this spring.
Prices began to decline for “illiquid housing markets”, i.e. badly located or in need of major repairs. Such houses now “hang” and if someone wants to make renovations to his style, he can bargain and buy such a house.
At the present, the buyers have the chance to buy a new, more spacious house by selling the existing one. In the spring, it was impossible to do this because there were multiple offers on every house, with 20 or 30 buyers for one house.
What to expect in November and December?
November and December are historically 2 of the 3 best months to buy a home if you want a deal.
Economists predict that the Bank of Canada will raise its interest rate again this year before interest rates stabilize. If the Canadian economy falls into recession, we could see mortgage rates drop starting in late 2023.
Of course, life does not stop and, as always, in the spring, a revival in the real estate market will begin. Therefore, buyers would be wise to obtain a pre-approval letter and lock in today’s mortgage rate for 90 days, then attempt to buy a house or condo in January, when prices will be lowered.
I wish to remind you that under the new law of 2022, the buyer is required to have their own real estate agent. The seller’s realtor is not authorized to represent the interests of the buyer and the seller at the same time.
Some proverbs give good advice, like “Luck is what happens when preparation meets opportunity.”
Please contact me, and I will be happy to help you become the owner of a new house or condo.
Now that Covid19 has turned our lives upside down : someone has lost their job, someone has lost a significant portion of their savings due to the fall in stocks on the stock exchange, some homebuyers think that they can buy a house in this situation for much less than the initial price.
Tip #2: Get Mortgage Pre-Approval.
If you know that you are competing with other buyers and the seller has not yet accepted or refused your offer to buy, you can improve it – offer a higher price, change the terms of the purchase, etc. To do this, your realtor will ask you to fill out a special form and send her after your offer. If your offer is still not accepted, your realtor may offer the seller to accept your offer second in line. Thus, if the first offer is canceled (the bank did not give a mortgage, the buyer refused to buy after the inspection), your offer automatically becomes the first.
In 2021, prices continued to rise both in Montreal and beyond in remote small towns. The issue of housing affordability has become critical in the Montreal region, especially for young families looking to buy their own home. Those who did not want to leave Montreal had to buy condos and 2-plexes to start at least somewhere and stop paying “someone else’s mortgage” for rental housing.
But what about those who did not buy real estate 5 years ago and are desperately watching the rise in prices, realizing that they have to pay twice as much today? So, buy or wait?
Prices in Montreal are already near their highs, and most likely will not rise as much in 2022. The same cannot be said about the prices in the cities adjacent to it. If the average price for houses in Montreal increased by 23% in 2021, then in 2022 prices will continue to rise, but by no more than 1%, analysts say. The rise in condo prices in 2022 will also slow down and amount to 3%. My advice: if you can’t buy a home in Montreal itself, look at what you can count on in the surrounding area.
Une enquête de Royal LePage dévoilée jeudi révèle que 18 % des milléniaux québécois et 28 % des milléniaux montréalais ont acquis un condo, une maison ou un immeuble depuis la mi-mars 2020.