A local realtor believes that first-time home buyers won’t be getting the desired budget they were hoping for when trying to lock down a mortgage. This is because of the recent interest rate hikes from the Bank of Canada. Bryan Pereveseff with Royal LePage says the increase in interest rate has now decreased a person’s buying power but does not think it will affect the market as a whole in Southern Alberta.
“Unfortunately because you know a lot of people have that dream house in mind and now that dream house is out of reach for them or even to get started that way it’s out of reach. There is no comparison whatsoever to our market compared to the larger markets in Toronto, Vancouver, Montreal, Calgary and so forth. That’s where the interest rates are probably going to have the most effect. In our market, the average sale price of homes is about $330,000. You go to Toronto, Montreal, Vancouver you’re looking at two-three million dollar homes and so forth so that interest rate is going to drastically affect those regions a lot more than it is ours,” said Bryan Pereveseff, Realtor with Royal LePage .
Pereveseff believes more people will be reluctant to buy a home now due to high interest rates.