BC Northern Real Estate Board Director (BCNREB) Bob Quinlan says it’s buyers that are likely to be unhappy with the results of the upcoming change to mortgage rules.
“I think that we are going to ultimately see a dip. I think that some sellers coming into the market who are sitting and waiting right now are going to be surprised that they’re not going to get as much for their property. Ultimately what’s going to happen is that anybody buying a house is going to have more skin in the game.”
Quinlan doesn’t think the changes will have much of a negative impact, although housing prices may go down and interest rates could go up.
“I think rates are going to go up, which is also going to inflict on people’s buying power and then, all of a sudden, anyone who puts less than 20% down will have their borrowing power reduced. They’re still going to be able to buy at a good rate.”
In the end, he thinks the new rules could be good for the housing market.
“When it settles, it will be a more stable market because, as much as buyers want to buy, the sellers have to sell. And in any market, ultimately, 65-70% of homes sell.”
The BCNREB recorded 741 sales of detached houses in Prince George in the third quarter of this year.
Quinlan says he expects the market to remain healthy, due to its diversity and recent stability.
Currently, the average housing price in the whole of Prince George is about $300,000. College Heights and Westgate are slightly higher at $350,000.
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