Due to high demand and low inventory in the first quarter Centris statistics, most Montreal property market has recorded heated conditions. However, the segment of revenue properties is much less competitive than the floor ownership market. Only 7 neighborhoods recorded the appropriate statistics for a vendor’s market.

How are market conditions measured?

The new Sales Lists Ratio (SNLR) is a common measure used to determine whether the real estate market is advantageous for sellers or buyers. Compares the number of new properties sold to the number of houses sold in the same period.

The Canadian real estate association classifies a market with a SNLR of 0-39 percent as a buyer’s market. In this scenario, inventory demand has exceeded and this usually increases the bargaining power of buyers. Vendors in these markets can see that it takes longer to sell their property, and the price increase is likely to stop or even fall.

A market with SNLR of 40-60 percent is considered a balanced market.

A high SNLR of over 60 percent is indicative of a vendor market. In this scenario, several buyers compete for limited stock, which raises prices and increases the formation of tender wars. In such a market, sellers have more bargaining power than buyers.

Sales to new list rates can provide valuable information about whether it is the right time to buy or sell a home in a particular area.

1) The best market for buyers (least competitive): L -le-Bizard / Sainte-Geneviève (16.67 percent)

2) Best market for sellers (most competitive): Hampstead (100 percent)

Tips for buying property in a competitive market

1) Start with pre-approval: Preliminary confirmation strengthens your offer by proving to the vendors that you are entitled to receive mortgage loans by a bank. In a competitive market, getting pre-approval can mean the difference between winning or losing a bidding war.

2) Set an alert: In a hot market, good deals make fast sales. Make sure you don’t miss the perfect opportunity by signing up for an automatic feature alert.

3) Shop for a mortgage: With interest rates rising, buyers are advised to shop under the best conditions before signing the dotted line. You can compare and compare credit offers across multiple lenders to find the best interest rates and conditions. During the 25-year mortgage, a 0.1 percent drop in your interest rate will give you $ 3 thousand 760 in a $ 300 thousand home.

4) Make the contract hunter: When the market is hot, buyers must take additional steps to find a good deal. Try signing up for the e-mail list by overhauling properties listed by an investor’s postal value – such as repossessions, fixer uppers, and pre-construction bids.

5) Work with a broker: An experienced broker takes you away from risky investments, saving you money and time by conducting a fair market analysis of every property considered and negotiating with your sales representative.

Source: Shupilov

Melike Vodina / realesatecoulisse.com