2024-01-03 17:23:39
The surge in interest rates over the past 12 months has severely limited the borrowing capacity of buyers wishing to purchase a property.
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Knowing that approximately 28% of mortgages in La Belle province will need to be renewed within the next 18 months, we could see a lot of movement in the real estate market.
“We have started to see it for two or three months,” says broker Pierre-Olivier Vear. In the last two years, we were in an artificial bubble. The rise in interest rates had no direct impact on sellers.
“On the other hand, the phone is starting to ring more and more with people who have a mortgage renewal. They can no longer do it and they need to sell their property to buy cheaper ones.”
According to Pierre-Olivier Vear, financial institutions do not keep their customers in line. The economic context rather pushes them to put themselves in solution mode.
“They still help people. They will try to remedy the situation. There haven’t been many cases where people are forced to sell. We’re starting to see it.”
Stevens LeBlanc/JOURNAL DE QUEBEC
Ironically, it is not the owners of houses worth 750,000 or more who are swimming in troubled waters: “people in the 450,000 to 600,000 range find themselves having to sell their property. By selling, they buy back cheaper ones.”
If we currently see a seller’s market, it would be surprising if the trend were reversed.
“I wouldn’t think so,” Vear believes. I think we will remain in a seller’s market. There is really a lack of inventory in Quebec currently. The rise in rates means that everyone is staying at home.”
On the other hand, in the Capitale-Nationale region, bidding wars are currently taking place between clients who have houses in their sights.
This does not mean that significant price reductions are to be expected.
“In 2023, we expected there to be an impact on prices, but they remained stable. They have even increased a little, warns the broker.”
“If rates decrease in 2024, it will create excitement and there will be more buyers.”
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