Interest rates in Canada are now at their highest levels since December 2007.
Today (Wednesday), the Bank of Canada raised its prime rate by 25 basis points to 4.5%.
But what does this mean for the housing market across the north?
Longtime Prince George realtor Bob Quinlan noted that some of the newer buyers may start to feel a little bit of a pinch.
“Anyone who bought in 2021 or 2022 will be affected if they are wanting to sell in the next few years and if they put down a small down payment then it will cost them money to sell. But, Prince George seems to be fine as we go through the adjustments there seems to be activity in all areas of the city.”
Quinlan stated he doesn’t see the local housing market going through too many major changes, but a couple of them will be noticeable.
“The only factor that has changed in our real estate market is the borrowing and lending interest rates. And the result has been the leveling off of selling prices over the last year as compared to early 2022. When we see great price reductions out there it just means they are getting to a more realistic asking price and then a buyer is going to be more interested.”
Despite the rate increases, Quinlan still expects housing activity to ramp up again heading into the spring.
“And I have seen that as the weather breaks in February ultimately more signs come out on the lawns and a lot more people are looking to buy. I expect this year to be the same and sellers with plenty of equity in their homes will be able to adjust these prices.”
He adds any potential buyers who have a lower rate locked in now have 60-90 days to execute their desired purchase before the new rate takes effect.