housing market

Fall – winter 2023: what to expect from real estate market prices?

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thinkingThose who were planning to buy a house this fall are probably keeping an eye on rising mortgage interest rates. And not only them. Those, who have already purchased property and are due to renew their mortgage this year, are also watching with bated breath what disputes flare up in the press over the growing banking interests. It is now becoming clear that housing prices will not rise soon, but will most likely fall, primarily for apartments (condominiums or condos for short), which are less popular than houses.

My clients who were qualified by the bank to buy a $500,000 home in 2022 are only qualifying to buy a $400,000 home or condo this year. Therefore, many of them believe that it is better to buy a good condo than a bad house. It should be considered that buying a condo is much more complicated than buying a house because you are not only buying your personal space, but also common areas with limited use, such as balconies or parking spaces. Each owner must respect the rules of living in the building. For example, it may be prohibited to have dogs, barbecue on the balcony, or wash your car in the parking lot.

Once the buyer’s offer has been accepted by the seller, the future owner has 10 days to review the annual meetings and financial statements for the last 3 years. If the buyer is not satisfied with the financial situation of the co-ownership, for example, at a meeting in 2021, a decision was made to replace the roof in 2024 and the approximate estimate is $200,000. However, the co-ownership has barely $50,000 in its account, which is definitely not enough and threatens urgent additional payments. This is a valid reason for refusal of purchase.

Here are two interesting condo options in Brossard on the South Shore of Montreal:

Condo 3 bedrooms and garage, 359 000$:

505 Rue St-François, app. 204

Condo 2 bedrooms and garage, 298 000$:

2540 Rue Nassau, app. E, Brossard

There are also attractive proposals in Montreal:

Condo 2 bedrooms and garage, 347 700$:

8295 Rue Sherbrooke E., app. 41, Montreal
8295 Rue Sherbrooke E., app. 41, Montreal

Condo 3 bedrooms and garage, 359 000$:

853 Ch. du Bord-du-Lac-Lakeshore, app. C, ( Dorval), Montreal
853 Ch. du Bord-du-Lac-Lakeshore, app. C, ( Dorval), Montreal

Always ready to help you, Olga Ouspenski, real estate broker with 20 years of experience. Contact me : +1-514-999-9260, olga500@gmail.com, or here  www.OlgaOuspenski.net/.

Autumn news of the Montreal real estate market

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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.

How can a buyer stand out from the competition? 5 tips.

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house soldNow 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.

I have to disappoint them, the Montreal housing market is currently in a “seller’s market” situation. As you already know, 2020 and 2021 were record-breaking years for property sales in Montreal, and 2022 started with sales at prices above the initial sale price. This means that there are more buyers on the market than properties for sale. This situation occurs when the seller receives several offers to buy his house/condo. This happens when the object is listed at a low or adequate price and / or has good characteristics (location, area, parking, etc.).house multiple offers

There is a situation with several proposals for the purchase (offer) for one house. Are you a buyer and planning to buy a property in the coming months? Here are some tips that will definitely help you find the best strategy for buying property.

How can a buyer stand out from the competition? Here are my 5 tips.

Tip # 1. Have a good professional next to you.

To determine the price, the realtor has statistics of the sold similar houses / condos in the same area in recent months. Usually the buyer is stressed, especially in such a situation. Your realtor will advise you to keep an evenness of mind and not overestimate your abilities. Instead, consider how much you would like to purchase a property for and stick to that amount.

Tip #2: Get Mortgage Pre-Approval.

Choosing from 2 offers with the same price, the seller will give preference to the buyer who has already received a preapproval letter from the bank about the maximum mortgage that he can get. The seller will be sure that he will not lose 2 weeks waiting for the confirmation of the buyer’s creditworthiness.

Tip #3. Consider all the conditions of the purchase.

The offer contains several conditions for the purchase, except for the price. For example, the date of signing the purchase / sale agreement, the condition for the inspection, etc. It is best to ask your real estate agent for advice on what conditions will help you win the auction.

Tip #4: Present yourself in the best light.

Sellers are emotionally attached to the home they are leaving, and they will certainly want to get to know the future people who will live in their home. Your realtor will give you the best recommendation, which can make all the difference when sellers choose a buyer.

Tip #5: Give a bonus or be second in line.

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 conclusion, the best advice I can give you in a multiple offer situation is to be patient and ask all your questions to your real estate broker.

Forecast for growth in property prices in Montreal in 2022.

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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.

Selling for prices above the starting price is no longer surprising. As a result, more than 50% of real estate was sold for more than the initial price. Those who bought a house, condo or 2-plex 5 years ago are in a fortunate position and can afford to move on by selling their homes and buying the best.

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.

Canada in general, and Quebec in particular, due to its economic strength and financial stability, will continue to attract many immigrants. Quebec is currently the economic powerhouse of the country thanks to huge investments in its infrastructure and diversified economic structure. Therefore, in 2022, one should not expect a decline in property prices. In addition, many immigrants buy real estate in Montreal without a mortgage, so they will not be hindered by an increase in mortgage interest.

All analysts agree that there will be a large shortage of offered real estate for sale, which cannot but affect the rise in prices. The government is of course trying to slow down the rate of price growth. So, the Bank of Canada has already announced an increase in mortgage interest in 2022 in the hope of slowing down the rise in real estate prices and allowing native Canadians to buy their own homes.

Still have questions? Planning to sell or buy? Call +1-514-999-9260, ask me a question here on the site or write to my email

Montrealers leaving the island

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The majority of Montrealers who have left the city for the suburbs have been living on the outskirts of the city, according to a report released Thursday by Canada Mortgage and Housing Corporation (CMHC). In general, families living in areas bordering the island of Montreal, such as near the Honore-Mercier Bridge or in the Riviere-des-Prairies neighbourhood, are more likely to move to the surrounding suburbs. Those who live in the more central neighbourhoods tend to stay in the metropolis.

SINGLE-FAMILY HOUSES REMAIN POPULAR

The percentage of Montrealers buying single-family homes has increased over the past six years. From 2015 to 2019, between 22 per cent and 24 per cent of them were already leaving the island to buy a bungalow in the suburbs. This proportion rose to 28.8 per cent in 2020. Interestingly, in July 2020, this percentage jumped to 31 per cent, the quarter after the pandemic began. The number of single-family home transactions rose in most municipalities off the Island of Montreal in that period. On the North Shore, the largest increases were observed in Saint-Eustache, Saint-Jerome, Saint-Lin des Laurentides, L’Assomption and Rosemere, and others. As for the South Shore, the municipalities of Saint-Jean-sur-Richelieu, Longueuil (Vieux-Longueuil and St-Hubert sectors), Beloeil and Sainte-Julie welcomed several families who had previously lived in the metropolis. This wave of new households has probably created additional pressure on prices in a context of very limited supply.

Source : ctvnews.ca