As is tradition, at the end of each year, we speak with Denis Kornienko, one of our city's leading realtors.
Denis has been helping young families build a secure future in Montreal for over 15 years.
- Denis, hi. Tell us, what did 2024 bring you in real estate?
- Thanks for inviting me, it's always great to see you and tell our readers what's going on in the market. Last year was completely different from 2023.
Last year, mortgage interest rates peaked at around 6.5% and most buyers took a break. With interest rates like that, it was very hard to get a loan and plan for your future. By the end of 2023, when the Central Bank of Canada stopped raising the rate, some buyers felt the worst was over and, ahead of the rate cut, sprang into action. From the winter of 2023 to the spring of this year, I and a great many clients bought both homes for themselves and for investment at prices that had not yet had time to react to the rate cut. By the end of this year, already after a series of rate cuts by the central bank, house prices had gone up.
- And how do most buyers react to a rate cut?
- In the only appropriate way. There are more and more people in active search of the market.
- Has the practice of auctions returned, as it was in the covid times?
- Yes, we often see up to five offers. But you have to understand that it is all very individual. Auctions happen when the object is offered at market price and does not have any serious structural problems with the foundation and the like. In such cases, there will always be plenty of willing buyers. But as soon as the price is inflated by 5-15% of the market price, the auctions are out of the question and such housing can stand on the market for months, sometimes even years. The calculation of the seller here is to wait for a buyer who is so in love with this particular house that will be ready to overpay for it 50 thousand, for example, from the market price. And it does happen, but I do not advise my clients to participate in such transactions.
- It is clear with buyers: the lower the mortgage interest, the more active they are. But how are things with sellers, are there enough properties for sale?
- With the lowering of the interest rate, the real estate market kicked into full gear, just as it had before. Homeowners began to think more often about improving conditions, selling and buying a larger apartment or house. Properties are going up for sale regularly in all neighborhoods of the city.
- How long does the average search and buying process take in your experience?
- Usually it takes five to six months from our first meeting with our clients to moving into a new home, of which on average up to three months are taken up by the home search itself, viewings, negotiations and so on.
- Denis, for those who don't know where to start buying their home, what do you recommend as a first step?
- The main thing buyers need to know is how much the bank is willing to give you a mortgage for. Contact me and I will refer you to trusted mortgage brokers who will quickly and accurately calculate the maximum purchase amount. Once we know the amount, we meet in person and discuss our plan of action and all of our options.
- What do I need to have in order to qualify for a mortgage?
- Banks look at many details. The main ones are: a permanent official job, a down payment of 5% or more, a minimum of debts and a good credit history.
- What happens to people who came under the CUAET program for Ukrainians? Are they still buying?
- Yes, everything is unchanged. But if in 2023 these were isolated cases, now more and more people get good jobs and start acting right away. Staying on rent and paying someone 15-20 thousand a year doesn't make sense if you have a job and a sum for a down payment.
- What areas of the city do you work in?
- I help with buying and selling real estate in all of Greater Montreal. That is, the island of Montreal and the suburbs.
- Which real estate agency do you belong to?
- All realtors are self-employed. I chose to go with REMAX. It is the largest agency in our province. It brings together only the best professionals to ensure the safest and most secure buying or selling process possible.
- Finally, what does the coming year have in store for us in your field?
- I think the situation will remain consistently good for buying and selling. Interest rates will continue to fall. The market will be active, the process of buying a house or an apartment according to their budget will take relatively little time. All tasks are manageable if approached with complete information, trust in your realtor and an understanding of the process.
If you have been thinking about buying or selling, contact me, I would be happy to help.
Regards,
Denis (514) 577-0787
Denis Kornienko Courtier Immobilier REMAX
