A house represents probably one of the most major investment decisions a family can make, since not only are homes conducive places to live, but also because it reflects a person's needs and goals. You purchase a house initially to improve your quality of life and in the long run, to build a acquire a positive financial asset.

In the greater Montreal real estate market, the average price of a property in this area has increased by as much as 50%, which is a sign of healthy growth. What could explain this situation? There are many vital factors that have made home values rise in this culturally and economically diverse North American city.

Low Interest Rates And High Consumer Confidence

According to property market observers, interest rates right now are currently very low, which ultimately leads to easier access to real estate property. The positive news for home borrowers is that in the short-term, there are no indications of a major and significant interest rate increase. The growth of the Canadian economy is also a major factor. The economy has grown by 14% since 2000, and the higher the level of confidence, the more shall consumers invest and probably buy properties. This has a major positive impact on the real estate markets here

Robust Job Growth

Since 2000, it is estimated that around 353,000 jobs have been created in this area, which means that Quebec is enjoying a balanced period of prosperity. When people are working, the greater the chances they have of buying a house.

In addition, the Greater Montréal rental vacancy rate in 2005 stands at 2%, and the option left to consider is to buy a house, an apartment, a duplex or a condominium. It is truly advantageous to trade up from being a renter to a home owner thanks to low interest rates and incentive programs such as the Home Buyers Plan (HBP).

Rise Of More Baby Boomers

The number of baby boomers reaching retirement age are going up, and these individuals are at a stage when they sell the family residence in order to buy a property for investment purposes, or buy one that better suits their needs. These baby boomers are either buying a condominium or a cottage or both.

At the same time also, the younger generation of home buyers, the ones aged 25 to 35 year old, are also delving into the real estate market and are scouting for a property in order to settle down. The result is an increasing number of transactions, as well as rising interest of families in the real estate market.

Is it Still Time to Buy a New Home?

The answer to the question above, is fairly yes. According to market analysts, it is still the time, if you make a well-planned move, notes a Greater Montreal real estate Board (GMREB) analyst. They remind buyers that they first must need to determine which criteria matters to them, which are either negotiable and non-negotiable, in keeping pace with their budgets and with a long-term prospects. At present, the average cost for existing homes and condominiums in the city continue to rise, however at a slower and much controlled pace.

The price of buying a condo for example, in the Montreal metro area is expected to increase by to a median level of $190,000 in 2007 -- which indicates an increase of five per cent. The Canadian Housing Corporation has noted that demand for condos has started to slow since last summer, and analysts note a large inventory of more completed, but still unoccupied units.