Tips for Buying in a Booming Real Estate Market

Tips for Buying in a Booming Real Estate Market

The housing market has shifted a lot in recent months. The value of homes has exploded in several areas. As an owner — or future owner — it can be nerve-racking to buy or sell in such an environment. Here are our tips!

According to the Canadian Real Estate Association (CREA), 2020 has been a record year for property sales. They were up 12.6% from 2019. In February 2021, for a fifth straight month, sales across the country even held at a historically high level of over 55,000 residences sold. 

And yet, despite high house prices, people are still buying. Indeed, this is not the first time in Quebec’s real estate history that property values have soared. If your goal is to sell or buy a home during this extraordinary time, read on.

Don’t Rush In… Despite the Pressure!

Houses are being snapped up, and bidding wars are frequent. It may then be tempting to quickly make an offer to purchase the first property that seems suitable; however, rushing in can lead to disappointment. If you can, visit a couple of homes before making your choice. Take all the time you need. No one wants to move into a house only to discover that it doesn’t really meet their needs and have to move out after a few months! Or be stuck paying two mortgages.

Investigate the Market Before Putting Your Own House for Sale

You may be over the moon with how much you think you’ll be able to get for your home; but before you put up that for sale sign, look into the neighbourhood you plan on relocating to.

While you may get a good price for your current home, there is every chance that the property you have your eye on has also increased in value, and perhaps more than you can afford. 

It’s a good idea to put together a detailed budget, including the welcome tax, school and municipal taxes, and regular maintenance costs beforehand, especially as it will be too late to do so once you have accepted a purchase offer for your own property.

Don’t Be Swayed by Low Mortgage Rates

The Bank of Canada has drooped its key interest rate three times since the beginning of the pandemic, so mortgage interest rates are incredibly low! According to Statistics Canada, in November 2020, the average interest rate on new mortgage contracts for Canadians was 2.01% (fixed and 5-year term), an impressive 0.7% decrease since April 2020.

This is certainly good for your wallet; nevertheless, it is imperative that you make sure you have the financial means to purchase your dream home. And if you choose a variable rate mortgage, remember that the rate could swing the other way over the next months — and without warning. Do your math!

Count on a Real Estate Broker

It seems like the real estate market will only continue to heat up, which means that it is now more essential than ever that you join forces with an experienced real estate broker. A real estate broker’s support will prove invaluable during many of your real estate journey’s steps: finding the perfect home for you, negotiating its selling price, accelerating the transaction process as needed, and helping you navigate your obligations as a buyer and seller.

The real estate market can certainly be dizzying, but with good advice and expert assistance, the buying and selling process can be made easy!

RE/MAX Québec

By RE/MAX Québec

By RE/MAX Québec

A leader in the real estate industry since 1982, the RE/MAX network brings together the most efficient brokers.