According to a survey conducted on behalf of the Greater Montréal Real Estate Board (GMREB) at the end of 2003, nearly 213,000 households were planning to buy a home in the next five years.
This trend has proven to be correct because during 2004, almost 50,000 properties were sold through the GMREB S.I.A.® /MLS® system, and almost 28,500 during the first six months of 2005.
“These numbers match those obtained in the first survey we conducted in 2001,” says Michel Beauséjour. “As a result, 2002 was a record year in terms of resale with close to 50,000 transactions. This leads us to believe that the trend will continue for the next few years.”
Significant economic and demographic factors
A house represents an important investment for a family; not only as a place to live but also because it reflects one’s needs and aspirations. You buy a house initially to improve your quality of life and in due course, to build a positive financial asset.
Did you know that family worth has increased since 2000? The average price of a property in the Greater Montreal area has increased by 50%, which is a sign of healthy growth. What could explain this situation? According to Michel Beauséjour, five major factors are in the mix:
1. Interest Rates: They are currently very low, which means easier access to a property. Good news for borrowers is that in the short-term, there are no indications of a major and significant interest rate increase.
2. Consumer Confidence: The economy has grown by 14% since 2000. The higher the level of confidence, the more consumers invest and buy properties. This has a positive influence on the real estate market.
3. Job Creation: Since 2000, 353,000 jobs have been created, which means that Quebec is in a period of prosperity. When you are employed, you have the means of buying a house.
4. Rental Unit Vacancy Rate: The Greater Montréal rental vacancy rate in 2005 stands at 2%. The option left to consider is to buy a house, a plex or a condominium. It is definitely advantageous to trade up from being a renter to a home owner thanks to low interest rates and incentive programs such as the Home Buyers Plan (HBP).
5. The “Generation Shuffle”: The baby boomers are reaching retirement age. They are at a stage when they sell the family residence in order to buy a property which better meets their needs. They either buy a condominium or a cottage or both! At the same time, the 25 to 35 year old generation is getting into the real estate market and is actively looking for a property in order to settle down. The effect is an increasing number of transactions and a growing interest of families in the real estate market.
Is it still time to buy?
“It is still the time, if you make a well-planned purchase,” says the GMREB spokesman. He reminds buyers that they must first determine which criteria matter to them, which are negotiable and non-negotiable, in keeping with their budget and with a long-term perspective.
Send Page To a Friend
Would you like me to work for you? Call me 514-402-8444 or email me
