Following last week’s announcement that saw the Bank of Canada drop the key policy rate for a second consecutive time, We’ve been getting quite a few questions on where the market will be headed in the next couple of months. Truthfully, no one will ever be able to answer that question with 100% accuracy, but here is our opinion on the next couple of months and what both buyers and sellers can look out for in our cities Fall Real Estate Market.
Buyers beware:
With the current BofC Key interest rate now at 4.5%, we believe that more young buyers will start to re-enter the real estate market for their first home or condo. Qualifying for a mortgage in Canada just got a little easier and with an ease on monthly payments we do expect there to be a slight increase in the number of buyers that will start looking to get their feet into the market again after having a slow 2023, and a very “normal” 2024. With an influx of buyers headed to the market, the best advice we can give to buyers is the following:
1. Be ready [Pre-Approval + Broker Chosen]
2. Be educated [know where you want to buy and study that market with your broker]
3. Be quick. [Do not wait to visit homes, make buying a priority again]
Although we do not expect to see a slur of multiple offers or a massive shortage of inventory, with the current real estate inventory in Quebec still hovering under 65,000 active listings, any big enough increase in the number of buyers can definitely turn the market quickly.
Sellers Get Ready:
Although the outlook for buyers is “be ready” The message for sellers is definitely get ready. With so many baby boomers and older folks looking to downsize into a smaller property or even make their way into the rental market, We do also expect a larger number of listings to hit the market between September and December and an even larger number to come in early 2025. That being said, if you were thinking of selling in the next 4-8 months our advice is get ready and call your local experts. Being able to know your home’s value and get it listed before the end of the year might just give you the upper hand you need to sell for a higher price than some of your competition in early 2025. Here is some advice for our sellers:
1. Get your home evaluated immediately. Before the rush
2. Prepare your home for a sale [Make it look better in any way that you can]
3. Study the market in your local area to know how your home competes against your neighbours.
With the next Bank of Canada announcement coming September 4, 2024 we’re all looking forward to seeing what the fall market has to offer for Montreal! If you have any questions, don’t be shy!
