Booming real estate market won’t be tamed by rising interest rates

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

Newell said there are still many multiple offer situations.

For a single-family detached home, the average selling price was $526,000, up from $478,000 in February 2021.

All housing types, including condos, apartments and mobile homes, increased by an average of about $30,000 from February 2021 to a total of $468,000.

This is not just a problem facing Prince George and area, but most of Canada.

Before the pandemic, the interest rate was set at 1.75% just to try to stabilize a pandemic market that has since exploded.

Mortgage expert Christine Buemann said she expects no significant change or cooling in rising interest rates this week, although future rate changes are something to watch.

Buemann noted that too many qualified buyers will drive the market more than the latest interest rate change at this time.

Estate agents are advising those considering entering the market to consult with a lender and lock in their rate for the next 120 days as soon as possible.

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