At the end of the year, according to a long-standing tradition, Nasha Gazeta published my interview in which we summed up the results of the year. May the new year bring you peace and prosperity.
✔️ How was this year overall?
- 2023 began with a lull, there were very few transactions throughout the city, buyers were more focused on news from the Bank of Canada about regular interest rate increases.
In my opinion, the peak of low prices will fall at the end of 2022 and the beginning of 2023. All those buyers who were not afraid of the rising rates were winners.
Despite the fact that housing prices throughout the past year were slightly lower than in 2022, closer to summer they increased slightly compared to the January-February lull. In today's market, there are a sufficient number of options that are of interest to buyers. Sellers generally cannot sell homes at last year's prices.
✔️ Which seller manages to sell? Has the time spent on the market for properties increased?
- Mostly those who sell are those who reduce the price by 5-10%; such objects are of interest to buyers. But most properties hang on the market for months, then they are simply taken off the market.
I can say that today the market has already become more active, there are an order of magnitude more buyers, due to the banks lowering the interest rate.
✔️ But the Central Bank did not reduce the base interest rate, but only did not increase it during the next announcement in December.
- Yes, but the banks themselves, which have a gap between the prime and the rate at which they lend for the purchase of real estate, have already begun to soften the conditions.
Today you can already find a fixed rate for the purchase of housing from 5.15%.
If there is a need to consult with professional mortgage brokers, contact me, I can refer you to the right specialist.
✔️ Many Ukrainians who have recently arrived under the CUAET program are interested in the opportunity to purchase housing. Is this possible with their status, and how does it work?
- Of course, I talked about this in the interview that we recorded for your Youtube channel Montreal LIVE, and in articles on my social networks - on Facebook and Telegram.
There are already people who came through the CUAET program and bought a home with a mortgage here in Canada. Here are the main criteria:
- Financing is available with a minimum 5% contribution for people staying in Canada for more than 1 year.
- To obtain a mortgage loan, you must have a full-time official job.
- The down payment must be in a bank account to confirm the origin of the funds.
✔️ What options were mostly in demand by your customers this year, what did they buy?
I would highlight three main categories:
- Apartments for $200-400 thousand as a first home or investment for rent.
- Houses for $400-800 thousand – as primary housing, or improvement of living conditions.
- Multiplexes (two-, three-, four-apartment buildings) with a budget of $500-800 thousand as an investment, for rental.
✔️ How long does the purchase process take on average today, from contacting you to the transaction?
- It’s different for everyone. On average, I would say from a month to three. Sometimes the process takes 3-6 months, and even less often the buyer makes a purchasing decision within a few weeks.
✔️Auctions are a thing of the past?
- What I see is that if a really attractive property appears on the market for sale, offered at the right price, we still find ourselves in a situation where there are several offers from those wishing to purchase it.
✔️What should we expect from 2024, in your opinion?
- Analyzing bank financial reviews, we can conclude that we may see the first reduction in the Bank of Canada bank rate as early as 2024, more likely in 2025.
Until the first key rate reduction has occurred and most buyers are in a waiting position, there is a rather unique opportunity to purchase real estate at extremely attractive prices. As you know, every crisis is a window of new opportunities. Those who use it correctly will win.
There is a lot of work ahead for me and my customers. Everyone we've worked with this year and with whom we continue to search now sees that it takes a lot of effort to drive, look, compare and analyze in search of a truly profitable deal.
Of course, given the current state of the economy, buyers need to be confident in their income. Perhaps those who believe that the Central Bank will not reduce the base rate should also refrain from purchasing.
✔️ Thank you for the interview and see you in the new year!
- I congratulate your readers, as well as all my clients with whom we have been working for many years, as well as those with whom we made transactions for the first time, on the upcoming holidays. Peace, health and prosperity!
I will be glad to represent your interests.
Sincerely,
Denis 514.577-0787
Denis Kornienko Courtier Immobilier REMAX
