Higher interest rates from the Bank of Canada are continuing to take a large bite out of the housing market in Prince George.
According to the BC Northern Real Estate Board, over a three-month period, the average price dropped 53-grand going from $538,000 in August to 485-grand in October.
Bob Quinlan with RE/MAX Core Realty told MyPGNow.com that the inflated price bubble that dominated our city for the past few years has finally burst.
“We have to say that the interest rates that were so low created artificial high values. So, what people are doing if they are going on those values of what happened last year or even early this year with the new interest rates, means people can borrow less.”
Quinlan added with interest rates being hiked up by the Bank of Canada, anyone in a low-equity position will be the most impacted.
“All of a sudden as interest rates start to go up and you’ve got a renewal in a couple of years you are going to start seeing people go into foreclosures. It’s hard to say whether or not this rate adjustment is going to be a soft landing or a hard landing. It all depends on the motivations of the buyers and sellers.”
In October, 53 single-family homes were sold in the northern capital – a year-over-year drop of nearly 50% after 98 residential units came off the market.
Year-to-date, 743 single-detached homes have come off the market in PG – a decline of about 200 when compared to October 2021.