04/10/2025
With the Global Tariffs occupying most of the news... people are asking: "how does this affect me?"... And, for most of us who are reading this... "how does this affect the Prince George Real Estate Market?" (ultimately, our situations & futures)
My adult life has been in Prince George and most of my time has been spent working with homeowners (floor covering, construction, real estate). As the local market has taken its ups and downs, I have noticed a trend...
• 9/11 in September 2001... World wide, interest rates dropped (protect the masses from a depression) immediately and as they continued to drop, Real Estate values increased. Borrowers were able to borrow more on the same income and afford a higher value home. Sellers were able to move on to their next abode and the market grew. Demand grew and supply responded. The people of Prince George benefited greatly.
• 2008 Sub-Mortgage crisis... World wide, interest rates dropped immediately and as they continued to drop, Real Estate values increased. Lenders were given a new set of rules to lend on and the Real Estate Market adjusted to the balance of buyers and sellers abilities. Once again, newly approved buyers (many were first time buyers) were able to improve the quality of their homes and lifestyles. Prince George benefited greatly.
• Fast forward to the end of 2019 and COVID-19... again, World wide, interest rates dropped immediately and borrowers were able to borrow larger amounts, and invest. For a short time, the Prince George Real Estate Market went crazy and we are seeing the benefits of new development and renovations of various stages and of all kinds throughout the city and surrounding areas. As in previous shakeups, property values didn’t fall back.
Today, we have the uncertainty of tariffs/no tariffs/some tariffs (and when?) that are sending the markets into chaos. Interest rates in Canada are coming down and the US is talking about a possible rate drop at its next sitting. There is no doubt that we will be affected locally. How much? The bottom lines haven't settled yet, so this may take 6 month or more to play out. In the meantime, I see interest rates dropping for the borrowers in Prince George. That also means that it will benefit the sellers. Real Estate in Prince George and the surrounding area is a very safe investment. People can still make plans to move.
