Real Estate Talk:
Year-End Advice

The situation will become worse before it gets better but there is an upside ahead

By Joseph Marovitch

As we have been advised regarding the pandemic, the situation will become worse before it gets better. All we can do is tough it out, stay home, stay safe, wear masks and social distance.

On the bright side, what can be done, if a buyer plans to purchase a property, is to acquire a pre-approval with the longest term possible, which is usually 90 days. Interest rates are extremely low. Today, some financial institutions offer a five-year term mortgage amortized over 25 years at a rate of 1.69%.

If a buyer can acquire a pre-approval at this rate, and interest rates rise between now and March, money will be saved. The demand for property is not diminished and is growing every day. The desire to sell is also growing daily. We are heading to a day when the pandemic will be behind us and there are excellent properties that will come to market as conditions improve. Now there is an opportunity to borrow at significant savings for the purchase of income, investment, and residential property.

If a buyer has a low-interest rate pre-approval, with a 90-day expiration date, and property in waiting, we have the perfect opportunity for buyers and sellers to meet.

Now is not a great time to show property but it is a great time to list. Buyers can view the properties online via pictures and virtual tours. Visits would only take place in mid to late January or when the government announces it is safe. Pent up demand is growing and showing property for sale online now can build anticipation leading to inquiries so that when the doors open, and buyers can visit, there will be a line up at the door.

If a buyer has a low-interest rate pre-approval, with a 90-day expiration date, and property in waiting, we have the perfect opportunity for buyers and sellers to meet.

The pandemic has not crippled the real estate market, only placed it on partial hold. As an island, and Montreal being in its 378th year, space to build is limited. Montreal is also a preferred location for international investors as its economy and politics are relatively stable compared to the rest of the world. These factors have, in the past, led to increasing property values.

‘The pandemic has not crippled the real estate market, only placed it on partial hold.’

Imagine the pandemic being like a dike in a dam. The dam is the public’s wants and needs. When the pandemic is overcome and it is deemed safe, that dam will break, and a flood will occur from an economic point of view.

We will still have to be cautious and take care, but life cannot be contained. Life expands. Land can be covered in concrete but eventually cracks will appear and growth will take place.

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.

Looking forward to 2021!

State of the market

Prices have risen due to higher demand than supply. The hot market has been the Laurentians even though there is little to purchase. Montreal is entering a severe lockdown between December 25, 2020, and January 11, 2021. Only essential services shall remain open, including grocery stores, pharmacies, garages, and pet stores. All workers in the private and public sectors will be required to work from home only. Outdoor activities will be permitted to a degree.

Regarding real estate, visits to properties to conclude real estate transactions are permitted with strict protocols. The aim is to reduce the number of infections so we can resume life in 2021. This directive will hopefully succeed, in which case we can look forward to a brighter future. We have overcome worse with World Wars and past pandemics. We can handle this.

Happy Holidays, follow protocols and stay safe!

Let’s not forget that people with cancer are vulnerable too!

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Feature image: Olya Kobruseva – Pexels

Other articles by Joseph Marovitch