Two experts see a positive trend for the months ahead
by Katia Samson, real estate broker, and Mathieu Alexandre-Poupart, mortgage broker
After 27 years as real estate broker, Katia Samson has seen a lot of ups and downs in the market. And things are looking up for 2023, she says.
“The real estate market has been quite strong since the beginning of the year,” she said. “This is evidenced by multiple offers on several properties and short sale delays.”
And she sees no sign of a slowing in the future. She bases this on low inventory, and no noticeable decrease in values and sale prices so far. If the offer/demand ratio remains the same, prices should be holding up.
“For buyers wishing to secure a purchase, it is more important than ever to get your pre-approval in writing prior to submitting an offer,” Samson said.
Mortgage broker Mathieu Alexandre-Poupart also sees a positive outlook for the Montreal housing market in 2023 with mortgage interest rates stabilizing.
“This is because mortgage interest rates are a key factor that influences housing affordability and demand,” he said. “When interest rates are low, it becomes easier for buyers to finance a home purchase, which can increase demand and drive up prices.”
Conversely, when interest rates are high, buyers may be less willing or able to take on a mortgage, which can lower demand and depress prices.
The Montreal housing market has experienced significant growth in recent years, thanks to a booming economy, growing population and increasing demand for housing. According to the Canadian Real Estate Association, Montreal experienced a 15.5% year-over-year increase in home sales in 2021, with an average home price of $505,000. This indicates a strong and stable market with sustained growth potential.
Mortgage interest rates will be less volatile in 2023, Alexandre-Poupart says, which means the Montreal housing market should experience continued growth and stability. This is because a stable interest rate environment provides certainty and confidence for buyers, encouraging them to make purchases and invest in the housing market.
“What’s more, the Montreal housing market is supported by several positive economic and demographic factors that will drive demand in the coming years,” he said.
The city’s economy is diverse and thriving, with strong employment and income growth in key industries such as technology, aerospace, and finance. This has attracted a young and educated population, with Montreal now ranking as one of Canada’s top cities for Millennials. As this demographic enters the prime home-buying years, they likely will drive increased demand for housing in the city.
As well, Montreal’s housing market is supported by strong government policies and initiatives aimed at promoting housing affordability and accessibility. For example, the city has implemented measures to encourage the construction of affordable housing units and has made significant investments in public transportation, making it easier for residents to access housing options throughout the city.
Overall, the Montreal housing market can expect a positive outlook in 2023 with mortgage interest rates stabilizing. This is because a steady interest rate environment provides certainty and confidence for buyers, encouraging them to make purchases and invest in the housing market.
Additionally, the city’s strong and diverse economy, growing population, and supportive government policies will continue to drive demand for housing in the coming years, Alexandre-Poupart says.
“These factors, combined with Montreal’s vibrant culture, world-class amenities and high quality of life, make it a desirable place in which to live and invest for many years to come,” he said.