The president of the Sarnia-Lambton Real Estate Board says rising interest rates are concerning but the local market is riding a wave of momentum.
The Bank of Canada announced Wednesday it's hiking its trend-setting interest rate to 1.25% from 1%, the third increase since last summer.
Steve Park says it's the perception of rising costs that has the greatest impact.
"In Sarnia on our average $260,000 purchase, it would make a difference of $54 a month on your mortgage payment," says Park. "While that's concerning, it's not going to break the bank for someone buying or selling but it's more the perception behind that and the fact that as soon as interest rates go up, even just a little bit, people start thinking oh my gosh my house is going to cost me more."
Park says he encourages people to take five year terms to have some security in terms of their monthly payments in the short-term.
He says momentum is carrying over from last year's record numbers and NOVA Chemicals $2-billion polyethylene plant announcement late last year will certainly provide a boost.
"We're still seeing lots of interest, we're seeing more people coming and not just with NOVA. We're seeing interest in transfers from different companies, and we're also seeing a lot of people looking at coming to Sarnia to either start their business, further their business or expand their business," he said.
Real estate sales in Sarnia-Lambton in 2017 hit an unprecedented $534-million. Dollar volume was up 17% while the number of sales increased 3%.
The Bank of Canada says strong economic data is the main reason for its rate hike but there's also rising uncertainty about the future of the North American Free Trade Agreement that's creating a drag on the economy.
-With files from Dave Dentinger