The increase in the key rate seems to calm the real estate market, which had been overheating since the start of the pandemic.
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“It has already been calmer for the past few months. We had two crazy years. There are brokers who have 30 years of experience who had never seen that,” says Mélanie Bergeron, real estate broker.
Bidding still exists, but for more affordable properties.
“Bungalows are always popular with first-time buyers because it’s an entry-level dwelling. It’s a first property that we can afford with our family,” says the broker.
The buyers of the last two years will have to keep their house for a few years, otherwise it risks selling at a price which could be lower than what they paid according to the real estate broker.
The increase in key rates has very little impact on new buyers since they will only be affected when they renew.
“I don’t know of a seller who can’t pay. It is certain that at the time of renewal, the banks do not want the keys to the house, they want the money. So, in my opinion, they will organize themselves so that you are able to pay your mortgage,” she said.
See the explanation in the video above.