Mortgage Blog
Canada's Mortgage Experts
Is Now the Right Time to Buy in Montreal’s Real Estate Market?
October 15, 2024 | Posted by: Yelena Markus
Is Now the Right Time to Buy in Montreal’s Real Estate Market?
Are shifts in the Canadian real estate market opening new doors for buyers? After a volatile period marked by high interest rates and rising home prices, recent trends hint at a possible rebound. Montreal homebuyers, especially those navigating mortgage requirements, are now seeing encouraging signs. Declining interest rates, stable prices, and a cooling economy are paving the way for new opportunities in the housing market. Below, we explore the evolving market conditions and what it means for those looking to buy a home in Montreal with the support of an expert mortgage broker.
Key Insights for Montreal Buyers
- Falling Interest Rates Boost Mortgage Affordability: Gradual rate drops are renewing buyer confidence by making mortgages more accessible.
- Stabilized Home Prices Offer Predictability: Price stability is giving potential buyers the clarity they need to re-enter the market.
- Savings and Pent-Up Demand Could Drive a Market Uptick: High savings levels and easing borrowing costs signal more buyers may soon jump into the market.
Interest Rates and Their Impact on Montreal’s Market
The Bank of Canada has introduced recent rate cuts, slashing the benchmark rate by 0.75% since June 2024. This trend is helping reduce variable mortgage rates and driving down bond yields, which could soon lower fixed mortgage rates. As these changes unfold, prospective buyers will find it easier to qualify for mortgages under the stress test, unlocking opportunities to secure more affordable homes.
Even though the immediate impact on sales has been gradual, Montreal’s real estate market is experiencing steady growth. With more listings appearing, particularly from sellers eager to adjust to the new conditions, buyers can now explore more options and negotiate favorable terms.
Price Stability Brings Confidence to Buyers
The unpredictability of home prices has been a major challenge for Montreal homebuyers. However, across Canada, markets are beginning to stabilize. This trend is reflected in Ontario, where prices declined by 2.4% in August 2024, and in British Columbia, which experienced a 2.2% dip. Montreal, while still a competitive seller’s market, offers unique advantages, including more balanced prices compared to Toronto or Vancouver.
In fact, Québec remains a hotspot with an SNLR (sales-to-new-listing ratio) of 65%, underscoring the ongoing demand for homes. However, the region's relatively stable prices allow buyers to approach the market with more certainty. For those planning to purchase in Montreal, this stability creates a more predictable environment to plan budgets and finalize real estate transactions.
How Buyers Can Leverage Savings and Timing
Many Montreal residents have built up significant savings throughout the pandemic. With borrowing costs decreasing, this savings surge can be channeled toward home purchases and down payments. In August 2024 alone, home sales across Canada rose by 4.8% year-over-year, indicating that more buyers are seizing the opportunity to lock in lower rates.
Mortgage pre-approvals are also on the rise, signaling growing buyer interest. As rates continue to fall, many Montreal buyers will find it easier to pass the stress test, clearing one of the final hurdles to homeownership.
Navigating the Mortgage Stress Test
While rates are dropping, first-time homebuyers (FTHB) in Montreal still need to navigate the mortgage stress test, which requires borrowers to qualify at either the benchmark rate or their contracted rate plus 2%. As rates trend downward, passing the stress test will become less challenging, empowering more buyers to enter the market with confidence.
Is Now the Perfect Time to Buy in Montreal?
The timing couldn’t be better for prospective homebuyers in Montreal. With home prices stabilizing and interest rates falling, the window of opportunity is wide open. Acting now allows buyers to:
- Lock in a low mortgage rate before further economic shifts occur.
- Benefit from stable prices, avoiding future market spikes.
- Take advantage of increased listings, giving buyers more leverage during negotiations.
According to the Canadian Real Estate Association (CREA), national home sales are expected to grow by 6.1% in 2024, with additional growth projected into 2025. With Montreal offering lower prices than other major markets like Toronto or Vancouver, the dream of owning a home is more attainable here.
Secure Your Home with Yelena Markus, Montreal Mortgage Broker
Favorable market conditions won’t last forever. Buyers who act now can lock in the best mortgage rates and enjoy peace of mind with predictable housing costs. As a mortgage broker, Yelena Markus is your trusted partner in finding the right home and financing solutions tailored to your needs. Whether you're a first-time homebuyer or looking to upgrade, Yelena’s expertise will help you secure the best deals on Montreal real estate.
Reach out to Yelena Markus today to discuss your options and get pre-qualified for a mortgage. Don’t miss out on this opportunity to make your homeownership dreams a reality—Montreal’s market is waiting!
