The secondary home market of 2024 is influenced by mortgage renewals that were negotiated around 2021 at an average rate of 2%. Those who bought during this wave of transactions enjoyed exceptionally low interest rates, but now that borrowing money costs more, they face renewed rates around 7%. In reaction to heavier monthly payments, many owners will consider selling their second home in the Mont-Tremblant area.

 

An Emerging Trend

Since January 2024, we observe sale prices influenced by the spectacular sales of 2021 and 2022. However, sales times are longer and multiple offers get rarer. Occasionally, multiple offers do occur for unique properties such as pristine waterfront houses and ski condos with rental revenues.

The high-end market of Mont-Tremblant is less influenced by the increased interest rates. Residences valued at more than $1.5 million are, in general, financed in a bigger proportion by the owners. Their decision to sell is then based on lifestyle choices rather than purely financial considerations.

 

An Increasing Supply

In the next months, we’ll see movement on the market for second homes with a value below one million dollars. These properties, mainly financed by mortgage loans, should be abundant on the Laurentians’ real estate market. Since supply will excess demand, we should see pressure on the prices, in what we call a buyers’ market.

As real estate advisors, our role is to set a strategic price when we list a new property with our selling customers. This requires a fine balance between the seller’s goals, the characteristics of the property, past price analysis and the state of the present market. In 2024, prices will be less inflated than in 2022 to ensure the properties get sold without stagnation on the market.

 

 

Our Advice to Sellers

Our main advice to sellers is not to be too ambitious on the asking price. Considering the price increase of the last four years, they should do well with a reasonable price.

Since January, we’ve opened this discussion with many homeowners preparing to sell. In general, we trust our colleagues, brokers of any banner, to set a fair price adapted to the local market. We always carry out a study to compare with available listings on the market to advise each customer as best as possible. Only considering past prices is not the good approach. We need a precise comprehension of the local market and the rules in force to plan a custom strategy. In our perspective, data about actual listings and lifetime on market provide important information.

 

Our Advice to Buyers

In 2024, buyers have the latitude to be patient, because the inventory is just starting to increase. The buyer looking for the ideal second home will benefit from the knowledge of a broker specializing in the Mont-Tremblant region. When buyers are represented by a broker working toward their goals, they make sure to be the first informed when the dream property shows up on market, so they can be the first to make the perfect offer.

 

 

 

If you’d like to discuss more about real estate opportunities, please reach out:

Michel Naud, Real Estate Advisor, Private Office: michel.naud@evrealestate.com

Patrick Naud, Residential Real Estate Broker: patrick.naud@evrealestate.com

Catherine Côté, Residential Real Estate Broker: catherine.cote@evrealestate.com