Two experts see a positive trend for the months ahead.
by Katia Samson, real estate broker, and Mathieu Alexandre-Poupart, mortgage broker
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After 27 years as a broker, Katia Samson has experienced the ups and downs of the real estate market. In her opinion, things are looking good for 2023.
“The real estate market has been quite healthy since the beginning of the year,” she says. “Multiple offers on multiple properties and short sale times are testament to that.”
And she sees no sign of a slowdown ahead. She bases this assertion on the low level of inventory, the absence of any noticeable drop in real estate values and sales prices to date. If the supply/demand ratio remains the same, prices should hold steady.
“For buyers looking to secure their purchase, it’s more important than ever to get pre-approval in writing before submitting an offer,” says Samson.
Mortgage broker Mathieu Alexandre-Poupart also sees a positive outlook for the Montreal real estate market in 2023 as mortgage interest rates stabilize.
“Indeed, mortgage interest rates are a key factor influencing affordability and demand,” he said. “When interest rates are low, it becomes easier for buyers to finance the purchase of a home, which can increase demand and drive up prices.”
Conversely, when interest rates are high, buyers may be less willing or able to take out a mortgage, which can lower demand and prices.
The Montreal real estate market has experienced strong growth in recent years, thanks to a flourishing economy, a growing population and increased demand for housing. According to the Canadian Real Estate Association, Montreal has seen a 15.5% increase in home sales in 2021, with an average price of $505,000. This points to a stable, healthy real estate market with sustained growth potential.
According to Mathieu Alexandre-Poupart, mortgage interest rates will be less volatile in 2023, meaning that the Montreal real estate market should continue to grow. Indeed, a stable interest rate environment reassures buyers, encouraging them to acquire and invest in the real estate market.
“What’s more, the Montreal real estate market is benefiting from several positive economic and demographic factors that will stimulate demand over the next few years,” he adds.
The city’s economy is diverse and thriving, with strong employment and income growth in key sectors such as technology, aerospace and finance. This attracts a young, educated population, and Montreal now ranks among Canada’s top cities for millennials. With this generation reaching their prime home-buying years, this demographic is likely to increase demand for housing in Montreal.
What’s more, Montreal’s real estate market is supported by strong government policies and initiatives to promote housing affordability. For example, the city has put in place measures to encourage the construction of affordable housing, and has invested in public transit, making it easier for residents to access the various housing options throughout the different areas of the city.
With mortgage interest rates stabilizing, the Montreal real estate market can look forward to a positive outlook in 2023. Indeed, a stable interest rate environment brings certainty and confidence to buyers, encouraging them to make purchases and invest in the real estate market.
With a healthy, diversified economy, a growing population and favorable government policies, Mr. Alexandre-Poupart asserts that demand for housing will continue to grow in the years to come.
“Combined with its effervescent culture, world-class amenities and good quality of life, Montreal is an attractive place to live and invest for many years to come,” he adds.
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Contact Mathieu Alexandre-Poupart to find out how much you can obtain from a lender.