Average PG home price drops nearly $50,000 in one month

Homeowners in Prince George who are looking to sell are already feeling the sting of the recent interest rate hikes from the Bank of Canada.

According to data by the BC Northern Real Estate Board, the average price for a single-family home went from $533,000 in May to $484,000 in June.

That’s a decline of nearly 50 thousand in just one month.

Bob Quinlan with Re/Max Core Realty told MyPGNow.com with interest rates on the rise, activity on attached homes like condos and townhouses have been healthy due to a much lower price range.

“So now, what we noticed in May that we had 40 sales, which averaged $307,000 for attached units but in June we only had 20 sales and the price dipped a little to $302,000 but it still basically stayed the same.”

On the single-detached side of things, sales remained steady during May and June with some price fluctuations mixed in depending on where you are located.

“Between May and June and on detached homes in the city, (the volume of sales) were pretty much the same at 114 in May and 115 in June. As far as pricing is concerned, they pretty well stayed the same going from $485,000 in May to $468,000 in June so they dropped a little bit,” said Quinlan.

“Outside the city, detached homes we saw increase where in May we had 16 homes sold where in June we had 24. Prices were about $550,000 in May and $557,000 in June – so it looks like the market is being cooled off.”

However, the interest rate hikes will continue to cool off what was a red-hot sellers’ market.

“I would guess that we are going to continue to see some levelling off. With interest rates going higher, we are probably going to see some sellers who are going to be asking less for their property. People can only afford to borrow so much and if the interest rate goes up, they borrow less,” added Quinlan.

“We are still very steady in Prince George. There is a lot of interest and demand with a lot more homes on the market. It’s becoming a much more reasonable market.”