Despite rising interest rates and the difficulty of paying the mortgage for a growing number of homeowners, the real estate craze continues and sellers still have the short end of the stick.
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Vincent Theoret and his partner decided to sell the family home, located on the south shore of Quebec, after their separation. After discussing with their broker, the strategy was: post a price slightly below the market price in order to receive more offers and more visits.
“But we had seven visits the following weekend and two offers on Sunday evening, at prices higher than the asking price. We asked for $429,000 and we got $441,000,” says Vincent.
Vincent Theoret, who recently sold his house on the south shore of Quebec. Photo credit: Vincent Theoret
Photo Vincent Theoret
The two potential buyers even let them decide the date of possession and did not impose any conditions.
“It’s still a seller’s market. Maybe not as much as it used to be, but our house doesn’t have many properties maintained like that. What remains on the market is often either owners who were smokers and it stinks terribly, or others who have a lot of renovations to do when they return,” says this 50-year-old IT analyst.
More multiple offers
The situation does not surprise Marilou Côté, real estate broker on the North Shore of Montreal. “I’m still in multiple offers on everything I sell. I just had 13 offers for a house in Laval that has pyrite problems. It will still sell above my client’s asking price. People were talking about a balanced market, but it’s still selling,” she says.
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The high cost of rent, among other things, contributes to pushing people towards purchasing a property, she says.
Even with a big salary
As for buyers, even the wealthiest have to tighten their belts. Daniel Couture and his partner make a combined salary of $300,000 and will still have to reduce their lifestyle after purchasing their cottage in Boischatel.
“We’ve been looking at a detached single-family home for two years. Since the market was on fire, we decided to wait. Prices are now more stable, but they are still higher than before,” he says.
They ultimately paid $462,000, although they were aiming for a maximum price of $400,000. “We have the means, that’s for sure, but with high interest rates, discretionary spending like travel or leisure will have to be postponed,” he says.
According to the most recent data from the Professional Association of Real Estate Brokers of Quebec, the median price for a single-family home and a condo in the province are still increasing, by 5% and 3% respectively compared to last year.