Just a few weeks ago, realtor Colin Krieg had multiple offers on two listings.
Those were the days.
An already cooling market hit a wall on Wednesday with the Bank of Canada's decision to raise its benchmark interest rate by a full percentage point.
"The government is really trying to scare people with these massive interest rate hikes and they're succeeding," said Krieg.
Within hours of the announcement, a sale fell apart right before his eyes.
"We were really close to putting the deal together," he explained, "and the buyers effectively said 'hold-on, with this big interest rate hike, we're just not sure right now'."
If the purpose of the hefty rate hike was to deliver a shock to the economy, it seems to be working.
"It feels like people are taking a breath and saying 'Whoa, what just happened'," said Krieg.
And it comes after the local market had already been in full retreat from the frenzy we've seen in recent years.
160 houses sold in June.
Krieg said that number hasn't been so low since 1995.
And now this.
"Everybody is taking a little bit of a pause and saying 'what should I be doing and what impact is this going to have?" he said.
But, he's not all doom and gloom.
Krieg suggested the market was due for something like this.
"I'm very happy to see the market cooling a little bit, it was so out of control. It was so absurd. It wasn't fun for anybody. Especially buyers," he said.
"Seeing the market coming a little bit back down to reality and hopefully stabilize would be amazing."
Krieg, expects prices to continue to ease downward, but nothing drastic.
"I don't expect to see any massive changes for the next six months," he explained. "We're on an easing slope right now and I don't see that changing."
The full percent increase in the benchmark interest rate is the largest since 1998, and the stated purpose is to try to get a handle on inflation.
