Is it the right time to buy a property? - Key Information
Over the past few years, we have witnessed significant changes in the real estate sector. During the pandemic, historically low interest rates fueled strong demand, creating fierce competition among buyers. Real estate bidding wars were often necessary to secure a property. However, today, the dynamics have shifted. But is it the right time to buy a property? We collaborated with Danièle Papazian and Clara Meesemaecker, real estate brokers at YE/SARRAZIN, to get their opinion on this burning topic.
Higher mortgage rates reduce competition for buying a home
Current mortgage rates, higher than those recorded during the pandemic, have restricted access to qualification for many buyers. This situation has led to a decrease in the number of buyers in the market, thus reducing competition for purchase offers. In the event of a further decrease in interest rates, it is highly likely that more buyers will resume their buying plans and bidding wars will once again become a reality in the real estate market. In this perspective, it may seem prudent to start the process for a real estate purchase now. However, it is essential to make informed decisions. A wise piece of advice would be to consult with a mortgage broker. By discussing with an expert, you can develop a strategy to secure the best possible rate, which could save you significantly in the long run. By anticipating market fluctuations and taking action now, you can optimize your chances of achieving a successful real estate investment.
Buyers have more negotiation leverage when purchasing a property
With less competition in the market, negotiation opportunities open up further. Buyers now have the luxury of taking their time to assess different properties and to establish conditions that meet their needs, whether in terms of inspection, price, inclusions, or occupancy dates. This approach allows the buyer to protect themselves, a practice that contrasts with the past where purchase offers were often submitted with as few conditions as possible, such as waiving the inspection condition.
Opportunities are still available in the real estate market
Regardless of the fluctuating state of the market, opportunities remain accessible. This is where the expertise of a real estate broker comes into play. With their in-depth knowledge of the real estate market in Montreal and experience, your real estate broker can help you efficiently navigate the search for the ideal property, whether it’s a condo, a house, or an income property. Their expertise goes beyond just the transaction; they are there to understand your needs, anticipate market trends, and guide you through the entire purchasing process. By collaborating with an experienced real estate broker, you benefit from valuable support to achieve your real estate goals in an ever-evolving market.
The question “Is it the right time to buy a property?” is a common inquiry directed to our real estate brokers. Danièle Papazian and Clara Meesemaecker, real estate brokers at YE/SARRAZIN, believe that it is indeed the case for several reasons. For instance, the increase in mortgage rates contributes to reducing competition because fewer buyers qualify, thus offering the opportunity to stand out. Furthermore, there are now more negotiation margins than before. Buyers benefit from increased protection and can negotiate the terms of the purchase offer, particularly regarding inspection, price, inclusions, and occupancy dates. Finally, opportunities remain available in the market. With the guidance and wise advice of your real estate broker, you will be able to find the property that perfectly matches your needs and expectations.
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