It’s no secret that the real estate market has been impacted by recent events. With the pandemic causing economic uncertainty and job loss, many people have become hesitant to invest in real estate.
So, the question on everyone’s mind is: when will the market recover?
The answer is relatively complex, because the real estate market itself is a complex system. There are several factors that influence its growth and decline on both a micro and macro level. To predict when the market should bounce back, we need to understand three key indicators.
- Interest rates. Low interest rates make it more affordable for people to take out mortgages, which drives demand for housing. If interest rates remain low, it will be a positive factor for the market.
- The job market plays a crucial role in the real estate market. A strong job market means people have more stability and security, which means they are more likely to invest in real estate. If we see an improvement in the job market and a decrease in unemployment rates, it will be a sign that the market is on the path to recovery.
- Consumer confidence is another major factor. When people feel confident about their financial situation and the future of the economy, they are more likely to invest in real estate.
It’s important to note that these indicators don’t always move in the same direction, and it’s possible for one factor to offset another. But if you keep an eye out and consider the overall state of the economy, you can get a better understanding of when the real estate market is poised to bounce back.
Have more questions about what to expect in the coming months? We always have our finger on the pulse of Montreal real estate. Reach out to our team anytime and we’ll be happy to chat with you!