Recently, rising interest rates have had a heavy influence on Montreal’s real estate market. There are currently more sellers than buyers. Read on to learn more about why those ‘For Sale’ signs are currently staying out for a bit longer.
Like every major city in Canada, the real estate market in Montreal has been, and will continue to be affected by rising interest rates. The biggest impact is that there is more real estate listings in Montreal and less buyers. It makes perfect sense! Rising mortgage rates make the idea of taking out a mortgage kinda scary. Don’t worry, though. Interest rates will settle down – eventually.
Buyers may be wondering how they are going to finance their new homes, and buyers may be wondering whether or not their old one is going to stay on the market forever. I may not have a crystal ball but I can tell you that as an experienced Montreal Realtor, I know that the decrease in buyers is only temporary. Look at how Montreal is doing. This is a vibrant, growing city, with the population continuing to grow year after year – which is perfectly understandable considering all that our city has to offer.
Population growth has a major impact on Montreal’s real estate market as students, young professionals and family continue to move in.
So, are any real estate transactions still happening, even with rising mortgage rates?
The short answer is: YES!
Affordable, entry-level properties, for instance, have been extremely popular lately. Smaller properties are even selling in a multiple-offer, ‘bidding-war’ situations.. Buyers are looking for 2 bedroom condos priced at $400,000 or less or single family homes priced at $600.000 or less in the greater Montreal area.
And yes, affordable, entry-level real estate properties are still on the market in Montreal!
On the other hand, properties on the higher end are staying on the market for a while. For example, single-family homes and condos priced over 1 million dollars have been affected by rising real estate lending rates. An overwhelming number of listings in this price range are accumulating in Montreal’s real estate market, or even expiring because there aren’t any buyers.
Just to recap: Potential buyers are being scared off by the high-cost of borrowing. The rising interest rates simply aren’t affordable. As a result, buyers are opting for smaller, more affordable homes, or considering locations outside of their preferred areas.
And I get it! Mortgage rates are at an all-time high making it even harder for first-time home buyers to get into Montreal’s real estate market, or for those who are looking to move into larger homes in more preferred areas.
If you’re a seller, your home might have been, or will be on the market for longer than it would have been at a different time. But do not be discouraged! As an experienced Realtor in Montreal, I can help. Give me a call and we can sit down and develop a plan that will work for you. Our team of realtors and brokers will support you in every step of the way as you prepare your house for showings, market, and connect with potential buyers.
If you’re a buyer, the current real estate mortgage rates may be preventing you getting into the real estate market or moving into a different home. I have over 8 years of experienced helping Montrealers find their dream homes, even in our rapidly-changing, competitive marketplace. Even if you find yourself settling for a smaller home in a more affordable area, I can help you find a home that meets your needs – regardless of your budget.
Wherever you are on your real estate journey, an experienced, top-ranking Montreal Realtor can guide you through the entire process and make it a smooth one.
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