Bank of Canada increases rates

Jun 2, 2022 | 4:40 PM

PRINCE GEORGE- It has been over a decade since the people of British Columbia saw Mortgage rates surpass 4 per cent. That all changed yesterday when the Bank of Canada increased rates.

“The Bank of Canada telegraphed their rate increases pretty well,” says Brendon Ogmundson of the British Columbia Real Estate Association. “This isn’t the last time they’re going to raise rates. We’re expecting they will” ” I would expect it’s probably another hundred basis points coming over the next year.”

The rate increase is intended to provide more stability and lessen the impact of inflation. However, if the past repeats itself in the housing market, it could lead to even more chaos.

” When rates go up, it often leads to a flurry of activity because people now have this sense of urgency to get into the marketplace.” Says Mark McVey of Team Power House Realty.

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Mark also spoke about the competitive nature of the real estate mark in Prince George, and how paired with the increased rates, it will make things more challenging for those looking to buy their first home.

“As of this morning, there’s 253 houses for sale, so there’s still very little for buyers to choose,” said McVey. “On top of that, now they are challenged by the 50 basis points increase, that is definitely going to strip away some of the purchasing power that most these buyers have.”

The average price of a one-family home in Prince George is now just over 520 thousand dollars. a 45 thousand dollar increase from 2021.

by Jack Clark

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Bank of Canada increases rates

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