Interest rates have been on the rise over the past six months to combat inflation, which can lead to higher monthly payments in the housing market, and potentially fewer homes being purchased.
Discover Weyburn recently spoke with Winston Bailey, Broker/Owner of Re/Max Weyburn Realty, about what he's been seeing in the housing market in Weyburn and surrounding communities.
Bailey said that he believes the market in Weyburn is very positive.
"We're seeing mortgage rates from some lending agencies in that five percent area, maybe just a little stronger than five percent, so not near as what they thought it was going to be, but our trend here in Weyburn right now, I feel is still pretty positive."
Bailey said that houses are selling in categories from starter homes, right to fairly new, large, and beautiful properties. "I'm fairly optimistic this is going to be another good summer for us," he added.
He shared that virtually every month, they have clients that are moving from, in particular, British Columbia (B.C.) and Ontario, mainly retirees or people with some ties in the Weyburn area, "And they're coming into Weyburn or surrounding smaller communities around Weyburn, and buying homes and loving it." He remarked that sometimes people move here for jobs or don't have ties to the area, but have decided that Weyburn is a place they'd like to live.
"It's very expensive to retire and live in B.C. and Ontario," he noted.
"For example, a 1200 square foot home in some communities in B.C., they can get seven, eight, $900,000 for them, and they can come and buy a comparable home here in Weyburn for $300,000. So, they just take that added investment and invest it and they can come here and live off their pension quite comfortably and have a bit of a cushion."
He explained that even if people own their home in B.C., the cost of maintaining it and the cost of living out there is much, much higher than what he's witnessing in the Weyburn area.
Bailey explained that in meetings he's had, they believe that the interest rates will come down. "We're not going to get back down to that two or two and a half percent, but we'll probably stabilize here by the end of the summer. You know, in around that four percent for mortgages, and that's not a bad number to be able to budget on and purchase a home."
Bailey added that there's a good market here in Weyburn and he said he's always told people that, "If you're not familiar with Weyburn and you're coming to look, I spend an hour or so with them showing off our city, and then it's really easy to sell them a house. "