Cut in the main level: “It will raise prices,” says Mélanie Bergeron

While the reduction in the prime rate announced by the Bank of Canada on Wednesday may be good news for those looking to buy their first property, the income of these new buyers could be negatively affected. on the market, says a real estate broker. .

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“It’s going to raise prices,” Mélanie Bergeron said in an interview on the show The Balance Sheet. “And prices have actually remained at a very high level since the pandemic. It hasn’t slowed down at all.”

According to the former host of Weekend Québec Matin, this new ad is better for sellers because the number of customers is increasing.

“Even without the reduction in the main rate, we returned to several special offers. We’re not talking about $100,000 more than the displayed price – as there has been a big increase in recent years – but it’s not uncommon to see 25,000, 30,000, or even 50 000 more than the displayed price if there are 5-6 bets. buy on the same property,” she explained.

But not all types of buildings experience this craze among buyers.

For example, the condominium market is much more prestigious than the single-family homes market, says the expert.

And the price of these properties is already very high.

“For example, in first-time buyer properties, we’re still talking about half a million. Today, when we talk about a building for 500,000, it is a lot of money, but these are the most prestigious buildings, confirms Ms. Bergeron. Again, million dollar buildings worth a million and having all the criteria, well renovated, which are all, are still very prestigious as well. I have seen several offers on these types of million dollar properties. It’s still nothing.”

Watch Mélanie Bergeron’s interview in the video above.