How the Bank of Canada’s interest rates hike affects Medicine Hat homebuyers

The Bank of Canada says the effects of the recent interest rate hike are evident, as housing activity retreated sharply, spending by households softened, and international demand slowed down.

But the Medicine Hat housing market has not been affected by this change, as major peaks and valleys have not been experienced.

“With interest rates going up … the payment will go up a little, so it can affect the buyers’ buying power, but again, I just look at our overall housing prices in Medicine Hat, and our market being a lot lower than other centres, even in the province, so housing is still very affordable for buyers in Medicine Hat,” adds Taupert.

The rising rates are giving some residents more to consider when thinking about buying a home.

“For me, the answer is, when you’re ready. There are homes that sell through the winter, into the spring, and in summer,” he says. “Seasonally, sometimes it is a little bit busier in certain markets, but then there is also more competition, so when you’re ready is always the best time to buy.”

According to The Monetary Policy Report, the bank expects consumer price index inflation to move down three per cent by late 2023, and return to two per cent by 2024. But the governing council has stated that it expects the policy interest rate to rise further.

The next scheduled date for announcing the overnight rate target is Dec. 7.

by Prina Atwal

How the Bank of Canada’s interest rates hike affects Medicine Hat homebuyers

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