Real Estate Talk:
Sell now or wait until spring?
Selling your property sooner than later may be a very wise decision
By Joseph Marovitch
Ask yourself if you prefer to move in the winter or the summer? Most prefer to purchase in the latter half of the winter and move when easiest, in the spring or summer. Buyers do not have to contend with unpredictable winter storms, and traffic tends to be lighter.
Property does appear more appealing in summer with blossoming flowers and greenery; however, the audience is smaller as people tend to be away.
Another issue to contend with is finding available notaries and inspectors in the summer. Finally, contractors become scarce in the summer months and are not easily available in August during the construction holiday. If a buyer purchases during the winter months and the property requires renovation, work can be performed before the summer holidays and the property ready for vacation time.
Another issue that has arisen is the COVID-19 virus. It is a pandemic and has reached Montreal. The Bank of Canada has reduced the prime lending rate by 50 basis points to 1¼ percent to fight the effect this issue is having on the Canadian economy. Across the board, businesses are feeling the effects. Wholesalers are having a tough time receiving products from abroad and retailers are experiencing less traffic as buyers stay home and events are cancelled.
This will affect the real estate market in that, as the economy slows down and people have less money to spend, real estate prices may drop across the board from single homes and income property.
If the crisis passes quickly, the next few months will be an opportune time to purchase because once the issue ends, the bounce back in the market should be significant.
Some affluent buyers may take this opportunity to purchase property below value on the chance the virus will come and go quickly. If the crisis passes quickly, the next few months will be an opportune time to purchase because once the issue ends, the bounce back in the market should be significant. Montreal is short on space for new construction and continues to be, along with the rest of Quebec, one of the safest places to park one’s capital and watch it grow in value.
However, the average buyer, who is laid off from work, or an entrepreneur who is experiencing reduced revenues may not purchase so quickly. If this issue becomes long term, there could be a correction in the market.
Therefore, selling property sooner than later, while prices are still in the higher range, may be a very wise decision.
I advocated that the Montreal market is rising and that barring a crisis, the market will continue to rise until there is no space left and we have a re-seller market only. Let us hope this crisis passes quickly.
Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, click here.
Have a great week and stay healthy!
Next article: Purchasing for the purpose of Airbnb income!
State of the market
On March 4, the Bank of Canada reduced the prime lending rate by fifty basis points to 1¼ % in an effort to reduce the effect the COVID-19 virus is having on the Canadian economy. There have been seven confirmed cases in Ontario and seven cases are being investigated in Quebec. Currently, retailers and whole sellers are feeling the effects in terms of receiving inventory and revenue.
‘The Bank of Canada reduced the prime lending rate by fifty basis points to one and a quarter percent in an effort to reduce the effect the COVID-19 virus is having on the Canadian economy.’
The effect of this issue for buyers can go one of two ways. Either the crisis passes quickly which means that over the next few months, as prices drop, buyers have an opportunity to purchase property, whether a residence or income property, at below market. When the crisis passes, the value of the purchased property should rise.
For sellers, now is a good time to sell. Prices have not reduced yet and the market is still hot.
If the crisis worsens over the next few months and then recedes to nothing, prices should rise significantly. This means later is a good time to sell.
Image: Andrew Burlone
Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible to, Joseph applies this to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or firstname.lastname@example.org