Local real estate market remains steady in face of rising interest rates. (CHAT News File Photo)

By Brian Konrad

Medicine Hat real estate market not impacted by rising interest rates

Jul 21, 2022 | 12:03 PM

MEDICINE HAT, AB — Dramatic increases in the Bank of Canada’s key interest rate hasn’t had much of an impact on the Medicine Hat Real Estate market, so far.

Justin Taupert, president of the Medicine Hat Real Estate Board, says Medicine Hat traditionally is insulated from the major swings seen in larger markets like Toronto and Vancouver.

But he says rising rates have created some questions among both buyers and sellers in Medicine Hat.

In theory, he says some buyers may lose some purchasing power due to increases in mortgage rates, but he’s not heard of any potential buyers being eliminated from the market because of rising rates, which he says remain historically low.

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“Our market is still very strong,” explains Taupert.

“If we transition slightly into a balanced market that’s good for everybody. We’re still having sellers’ homes sell in the first week and close to asking price,” says Taupert.

The board president says potential buyers working with a mortgage provider are often able to protect their interest rate for 120 days, which gives them time to shop without worrying about a potential increase in mortgage rates.

Taupert says they’ve seen an increase in homes for sale, which gives buyers more inventory to choose from.

Sales usually dip in the summer due to vacation but he expects to see increased activity again as people look to move before the snow flies in the fall.