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By Caden Fanshaw

HOUSING

Hot housing market won’t be tamed with interest rate increase

Mar 4, 2022 | 4:19 PM

PRINCE GEORGE – Demand continues to outpace supply according to real estate and mortgage experts who note the increased interest rate by the Bank of Canada to 0.5% will have little to no impact.

The numbers from February show less sales, although significantly higher prices than 12 months prior.

“For single family dwellings, in the current market conditions we saw fewer sales this year than last year in February,,” said Kristine Newell, REALTOR at Powerhouse Realty. “But the price is up, so of course that’s because of lower supply and higher demand driving those prices up.”

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Newell said there are still many multiple offer situation.

For a single family detached home, the average selling price was $526k an increase from $478k back in February 2021.

All types of housing including condos, apartments, and mobile homes are up on average around $30k from February 2021 for a total of $468k.

This is not only an issue facing Prince George and area but most of Canada.

Prior to the pandemic, the interest rate was set at 1.75% only cut to try and steady a pandemic market which has exploded ever since.

Mortgage expert Christine Buemann said she doesn’t expect any significant change or cooling from the jump in the interest rate this week, although future rate changes will be something to watch.

Buemann noted too many qualified buyers will drive the market more than the latest change in interest rates for the time being.

Realtors advise those thinking about getting into the market to visit a lender and get their rate locked in for the next 120 days as soon as possible.