Real Estate Matters

The weather is cooler, and so too is the real estate market in Yellowknife! But with interest rates coming down, what is to come for the Yellowknife Real Estate Market?

First, let’s touch on the interest rates. Exciting, I know. The Bank of Canada has now implemented three consecutive interest rate reductions, bringing both fixed and variable mortgage rates down. The U.S. Fed followed suit with a reduction of their own, signaling further rate reductions in the near term, with similar signals coming from the Bank of Canada. So, with interest rates on a downward slope, what’s to come for Yellowknife Real Estate? Let’s check in with what’s currently taking place in the market before we chat about what’s to come.

To start the year off with higher interest and the expectation of reductions in rates set us on an odd path. Many consumers expected interest rates to begin their downward journey, and as such, many buyers and sellers have stuck to the sidelines this year in hopes of making their next purchase with a lower interest rate, reasonably so. This year, while being busier than 2023 in terms of sales volume already (as of September 25), has been a slower year all things considered. 2023 was a hard year to compare to, with rampant forest fires, evacuations, and higher interest rates. So while 2024 has been busier year-over-year, it is still a historically slower year for real estate sales. It will be interesting to see what the fourth quarter of 2024 brings for Yellowknife real estate, but I imagine it will be similar to the previous three quarters: steady but not overwhelming, tapering off as winter sets in, with some consumers stuck waiting for interest rates to lessen.

So, with that recap of the current market, where will things be headed in 2025? My suspicion is that 2025 will be a much busier year than 2023 and 2024. With interest rates falling at a substantial speed, my assumption is that you will be able to get a comfortable mortgage rate throughout 2025 in comparison to what might have been available the previous two years. With lower rates, sellers who locked in during the previous low interest rate period will have the opportunity to make their move without a substantial jump in their payments. Lower interest rates and new mortgage rules coming from the federal government—raising insurable mortgage limits and allowing some purchasers to opt for a 30-year mortgage—will lower the barrier to entry for purchasers.

With sunny days ahead, if you plan to purchase or sell a home in Yellowknife over the next 6-18 months, connect today with Yellowknife’s most experienced real estate professionals at Coldwell Banker Northern Bestsellers.