Montreal Real Estate More Affordable
There’s a widespread belief that the real estate in Montreal is very expensive. However, it is also true that for the most part, affordable Montreal real estate is still available for families. Today, a smaller share of income can be used to make the purchase of real estate when compared to a generation ago.
Since the early 1980s, mortgage rates in Montreal and many major cities have witnessed a notable decline. The rise in family incomes, a decline in mortgage fees and in housing costs have contributed to the overall drop of housing prices in the vast real estate market. As a result, the home ownership rate shot up by 4 percent from a decade ago.
Affordable Montreal Real Estate Housing
The fall of mortgage interest rates has given a boost to affordability. Although young families are facing difficulties while buying their first new home than they did few years ago, Montreal housing is still less expensive than in the 1980s.
Due to the changes in the pattern of lending, many families can now afford to buy a house which they couldn’t have done as easily 10 or 20 years ago. To get a loan, people were required to make huge downpayments equal to 20 percent of the value of their house. But today, mortgage loans are offered with little or no down payment.
The primary reason behind this change is the notable fall in the mortgage rates. Furthermore, upfront mortgage fees have also been slashed down. The development in Web technology has made it possible for lenders to offer their services quickly and more efficiently.
Current Montreal Real Estate Market
According to one realtor, the Montreal real estate housing market showed strength in the first quarter of 2007. Strong consumer confidence and the thriving Montreal economy drove buyers into the real estate market. As a result, there were some increases in average house prices.
Despite predictions that the housing market in Montreal is headed for a slowdown, the market got off to a strong start, reporting one of the best first quarters on record in terms of housing units sold.