​According to the Quebec Professional Association of Real Estate Brokers, home sales in Montreal are up 25.5%. However, many economists believe interest rate decreases are not having a marked effect on buyers.

One reason is home prices rise as interest rates fall. Another factor is municipal evaluations based on pandemic prices do not reflect market values, therefore, in many cases asking prices are higher than the current market. There is a balance the Bank of Canada must achieve for the housing market to be more affordable. The Montreal real estate market is slowly improving, and another interest rate decrease is expected in September, which will improve the market.

However, according to economists, there has not been a major effect on the market yet that would increase demand and inventory. The market is slowly improving and according to a CIBC analyst, we should see a major change with increases in both supply and demand in the next year or two.

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These sentiments are based on the current conditions. There are still factors that will determine if the market goes north or south in the coming weeks, such as the Middle East conflict, the Ukraine conflict and the U.S. election in November.

Currently, for the next few months, there is a window of opportunity to purchase some properties at a reasonable price and at a reasonable rate for the first time in four years.

Have a great week.