Montréal real estate: what to watch this fall before you buy
Frédéric Vinet, real estate broker
Before buying in Montréal this fall, keep an eye on prices area by area, how interest rates affect financing, the income and expenses of multiplexes, properties that sit on the market for a long time, and the neighbourhood's potential. Waiting for the market to drop can cost you a good opportunity, and buying out of fear isn't a strategy. What matters is recognizing the property that truly fits your strategy.
Fall usually brings the real estate market back to a busier pace. After the summer, many buyers pick up their search again, new properties come on the market and some owners want to wrap up their plans before the end of the year.
For buyers and investors, that makes it a good time to watch the market closely. But before you make an offer, a few things deserve your attention.
How prices are moving
The listed price doesn't tell a property's whole story. In Montréal, the reality can vary a lot from one area to the next, and even from one street to the next.
An income property in Rosemont–La Petite-Patrie doesn't necessarily compare the same way to a similar property on the Plateau-Mont-Royal or in Villeray or Outremont.
Before deciding whether a property is well priced, look at recent sales of comparable properties and how the area is changing.
Interest rates
For investors, the cost of financing is still a key thing to consider.
A change in rates can directly affect your borrowing capacity, your payments and how profitable an income property is. For a duplex, triplex, quadruplex or commercial building, look at the investment as a whole rather than focusing only on the purchase price.
The income properties available
Fall can be a good time to pay close attention to the multiplexes coming on the market!
For an investor, the analysis shouldn't stop at the number of units or the asking price. Current income, expenses, the building's condition, the rents in place and the building's potential can make a big difference in the real value of the investment.
In sought-after areas like Rosemont, the Plateau-Mont-Royal, Villeray, Outremont or the Mile End, it can also make sense to look beyond the immediate return and consider the longer-term potential.
Properties that stay on the market longer
A property that stays listed for several weeks or months is worth a closer look.
That doesn't necessarily mean it's a bad opportunity. The asking price may be too high, some features may limit the number of buyers, or the property may simply appeal to a narrower market.
For a buyer, though, a longer time on the market can open room to negotiate, as long as you understand why the property hasn't sold yet.
The neighbourhood's potential
Investing in real estate also means investing in an area.
Development projects, new infrastructure, how a neighbourhood's commercial life evolves and rental demand can all influence a property's value over time.
In Montréal, areas like the Sud-Ouest, Rosemont–La Petite-Patrie, Villeray and the Plateau-Mont-Royal each have a different reality. So location has to be analyzed based on the type of property and the buyer's strategy.
The commercial market
For those interested in commercial real estate, fall can also be a good time to take another look at some opportunities.
A commercial building has to be analyzed differently from a residential property. Leases, rental income, the quality of the tenants, operating expenses, the occupancy rate and the building's potential all need to be considered.
A well-located building in Montréal can look good on paper, but the numbers and the conditions that come with it always have to be studied before you decide.
Buy now or wait?
That's probably one of the questions a lot of buyers and investors will be asking this fall.
There's no single answer. The right time depends on your financial situation, how much financing you can get, the type of property you want and your goals.
For an investor, simply waiting for "the market to drop" can also mean missing a good opportunity. On the other hand, rushing to buy just because you're afraid of missing out isn't a strategy either.
What matters is being able to recognize a property that truly fits your strategy when the right opportunity comes along.
Fall can be a good time to watch, and to act.
With the market active again, fall is a good time to follow prices, compare properties and get a better understanding of what's happening in different areas of Montréal.
Whether you're looking for a condo, a duplex, a triplex, a quadruplex or a commercial building, a good decision starts with a full analysis of the property and its potential.
If your goal is to buy in Montréal this fall, now's the time to sharpen your strategy, follow the market and, above all, know what to look for when the right property comes along.
