Welcome to the Guardian Financing December 2018 monthly newsletter. This month’s issue is on the potential high real estate sales forecast for Montreal in 2018/19.
The Quebec Federation of Real Estate Board announced that home sale prices in Montreal are likely to hit new record highs from late 2018 through 2019 even though the projected growth rates will still be lower than the highs recorded in 2017.
If the trends from the first ten months of 2018 are anything to go by, then it is estimated that the average sale price for single-family units in Montreal may experience growth of up to 3.2% annually, and this may push prices up to $320,000 for a single-family property. Condo values, on the other hand, are expected to grow by up to 4%.
It is also estimated that come 2019, the price growth in the single-family units will be set at 4% and the condo values may also go up by an additional 3%. These are subtle indications that the Montreal market is still a hot one since the prices keep on rising. But it is not only in downtown Montreal that the trend is being observed, but also in the neighboring regions. For example, the supply of homes in the suburbs have been relatively low, and they have witnessed a surge in first-time buyers, and this combination has effectively prevented the appreciation rate from coming down in such places.
With such prevailing conditions in the housing market, it is understandable that many buyers want to get in now, because nobody wants to wait for prices to increase further, before they can make their moves. Again, the fear of the rates going up, as well as predictions of at least two rate hikes by the Bank of Canada, further complicates the matrix and come 2019, there is no doubt that mortgage rates will go up, and this will disadvantage first time buyers or those who are still hoping that rates may miraculously go back down.
Guardian Financing is a direct private mortgage lender. We serve the greater Montreal area providing short term residential mortgage loans, typically ranging from $50,000 to $3,000,000. Contact us today to discuss your file at 514-700-3121 or by email at files@guardianfinancing.ca
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