Before I go into the top reasons on the question, should I sell my house in a seller’s market, let’s take a look at the Montreal real estate market in detail. The stats are now available for the third quarter of 2019 and they indicated a sharp rise in prices and an increase in number of sales when compared to 2018. The Quebec Professional Association of Real Estate Brokers (QPAREB) compile all the sales registered in the provincial Centris database for the Montreal Census Metropolitain Area, which consists mainly of the Island of Montreal, Laval, South Shore, North Shore, Vaudreuil-Soulanges and Saint-Jean-sur-Richelieu.
Montreal real estate market is hot
We are witnessing record-breaking statistics and shifts in the market. In September of 2019 a sharp increase in sales of 14% was noted. This is a new sales record for a month of September. Condos for the first time are outpacing single family homes in price increase, as inventory declines. In terms of prices, new records were set for all home categories. Condos and plexes posted a 10% price increase since 2018- and single-family home prices rose by 6%. The other record-breaking stat has to do with the number of properties for sale. This has decreased by 21%. The result is another record-breaking event which is that homes are selling much faster than ever, on average 5-22 days faster. We haven’t seen this since the fall of 2004-2005.
With all the record-breaking data, you can understand why I would strongly advise someone to sell their house, and perhaps get a little more than expected in terms of price. Some economists are predicting an overall slow down and perhaps a recession in 2020 or 2021. Other local economists are predicted continued growth in the Quebec real estate market. I believe prices will continue to rise slightly in 2020. If you have been thinking of selling and the time is right for you on a personal level, then I would advise you not to hesitate. Take advantage of the fall and even this winter to sell your home.
Source: Quebec Federation of Real Estate Brokers (QPAREB)
Top three reasons to sell your home in 2019
- • Inventory of properties is down 21% on average
- • Interest rates are still low
- • Demand is high
- Inventory of properties is down 21% on average
The less supply there is available the higher the value of the good. The fact that there is 21% less homes for sale on the market, coupled with the high demand for certain neighborhoods and types of properties, is driving the prices up. This decrease in properties for sale will vary from one neighborhood to the next, so make sure to get the stats from your realtor to make sure not to over price your home. Even though prices have gone up, and continue to do so, the best strategy is always pricing at market value. Buyer’s will come, and if there is more than one interested, you will most likely receive multiple offers.
Interest rates are still low
Mortgage interest rates have been on a bit of a bumpy road over the last few months, but they have come down. While it’s reasonable to expect mortgage rates to perhaps climb gradually throughout the next year, they’ll remain much lower than the historic high of more than 18 percent in 1981. It’s important to keep in mind that while mortgage rates tend to mirror the Fed’s interest rate activity, mortgage rates are based on the market in that moment, your financial status and the property you’re looking to purchase. A sudden increase in rates in highly unlikely, so buyers will take advantage of this now.
Demand is high
There is a higher demand for certain neighborhoods and types of properties. Due to the increase positive net migration we are experiencing in Montreal, the demand for condominiums has jumped significantly. Neighborhoods with predominantly English schools and services are in higher demand as well as off-island affordable housing near transportation. Small plex type properties which allow for families to pool their money and live together is also in high demand.
Contact a realtor who can provide you with the market knowledge and guide you to make the right decision for your situation.
Source: Quebec Federation of Real Estate Boards
Eleni Akrivos is a Chartered real estate broker and President of North East Realties, Real Estate Agency in Montreal. Eleni is a lecturer in the Residential Real Estate Program at College Lasalle and Co-Hosts “The Real Estate Show” on CJAD AM800 radio every Sunday at 1:00pm. To send her questions or comments please write to Eleni Akrivos and visit North East Realties for articles and videos.
Other Real Estate articles: