Housing Report Shows Growth for P.G.
Prince George, B.C.- According to Canada Mortgage and Housing, housing starts, sales and prices in Prince George are forecast to increase.
Construction starts in Prince George are predicted to be up 2.6% this year over last, and the forecast if for a further 15% in 2015.
The report predicts the resale market will see increased activity with a 3.6% boost in sales this year over 2013, and up a further 6.1% in 2015.
When it comes to selling price, the average price is expected to increase from the $259,288 mark in 2013, to a forecasted $269,000 this year. The forecast for 2015 puts the average price up another 4.1% to $280 thousand dollars.
As for the vacancy rate in the rental market, CMHC says the rate in Prince George will slip to 3.1% by the end of this year, down from 3.8% in 2013. The average rent for a one bedroom apartment will increase by $9 to $645 a month, which a 2 bedroom unit will increase by $9 dollars to $765 a month.
The Housing Affordability index shows Northern B.C. is far more attractive than the lower mainland.
Housing Affordability Index estimates how much of the average household income is needed to cover mortgage costs, municipal taxes and fees, and utilities for the average single family home. For 2013, the Housing Affordability Index for Prince George was 31.5%, virtually unchanged from 2012. For Northern BC it was 31.9% compared to 81.6% for Vancouver and 67.7% province-wide. The largest contributor to these differences is house prices; the average price of a single family home sold in Northern B.C. was about $257,000 compared with $807,000 in Vancouver, while the provincial average for the year was more than $600,000.
Comments
6 months ago CMHC predicted a 39.2% increase in housing starts for 2014. Now it’s only 2.6%?
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Not to worry^^, rosy times ahead 15% growth next year!
Can anyone remember the last time there was 15% growth in this sector?
Must have been a while one would presume?
CMHC is trying to push the bubble. When interest rates head north they are on the hook for over a trillion dollars in mortgage insurance… err the taxpayer will be on the hook for most of it.
The banks will be more than willing to further pump the bubble with low interest rate renewals on short terms. The banks have no risk as the homeowners were forced to buy CMHC insurance to make the banks whole no matter what happens.
Really, people think 80% of ones income for a house payment is sustainable? That $600,000 is an affordable average price? This is a bubble and 15% in 2015 is nothing more than a talking point wishful thinking.
We could be in a cold war with China next year and interest rates could be 8% (the 50-year average)… house values would be 40% what they are today with three times the interest cost to renew… would the Chinese still be allowed to invest if their country was in a recession and economic war with the west?
Time Will Tell
These reports are just false, especially if you compare to the top comment. It’s like predicting weather for the next seven days.
pookerjams, you are so right. I have never seen predictions on interest rates or housing starts or housing market growth that were anywhere near true.
Pylot Project is accurate when saying that 39 % TURNS TO 2.6 %. LOL SO TRUE. It is just malarkey that these so called authorities can predict the future rates of increase/decrease.
Why on earth does PG need more housing starts? As poster NMG has pointed out on several occasions, we as a city are spread out to much already. This just adds to our infrastructure that we struggle to service now. Add to that, there are several new houses in some of these newer subdivisions that were built 2 years ago that still have not sold.
“too much” … my bad.
Next they will have a quote from some real estate agent saying something about..
“we are expecting a sellers market”
or
“we are predicting and strong market”
blah blah blah..
the numbers never match these experts predictions (which are just trying to boost their sales)
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