Montreal housing market: Where are house prices headed?
Terry Kilakos (pictured top), president at Montreal-based North East Real Estate & Mortgage Agency, told Canadian Mortgage Professional that the continuing strength of home prices in that city surprised many would-be buyers who had decided to wait until property values declined before entering the market.
Some prospective buyers who had been preapproved were ready to make offers in January and February but decided to hold off in the expectation that prices would be much more favourable in the subsequent months, he said.
“If you look at markets like Toronto [and] maybe even some pockets of BC, a lot of the homes have dropped in value,” he said. “But Montreal hasn’t. The Montreal market is still relatively strong. Houses are still going over, [and] there are still people looking right now.
“It’s just you’re not getting as many offers so whereas the house might stay on the market for a couple of weeks instead of one weekend, generally the houses are selling – and they’re selling over asking.”
Homeowners are, of course, as preoccupied in Montreal about the impact of the Bank of Canada’s rate-hiking cycle as elsewhere, Kilakos said. That’s where he believes mortgage brokers have a duty to provide strong guidance and detailed information to their clients to make sure they understand precisely what those rate increases entail.