MLS® residential sales are expected to rebound 9 per cent to 3,200 units in 2010. However, activity will likely reflect levels experienced in the 2001-2002 period. The current buyers’ market is expected to move closer to balance conditions this year, easing any downward pressure on prices. BCNREB’s average MLS® residential price is forecast to decline 9 per cent to $197,000 this year. However, most of the reduction in home prices has already occurred.

The ongoing global recession will continue to be a challenge for northern economies. While the US housing market has shown some signs of stabilization, the current glut of vacant homes will hold-back demand for new construction. Housing starts fell to an annualized rate of 485,000 in April, the lowest on record and 48 per cent below last year. This pull-back in demand has resulted in large declines in sawn lumber production in BC, sawmill closures, and curtailments over the last couple of years. A significant rebound in US housing markets is unlikely to occur before 2010. Meanwhile, the recession has also pushed demand and prices lower for a number of energy and mining related commodities produced in the region impacting local economic prospects.

The Prince George economy has increasingly diversified in recent years, enabling it to better withstand the volatility of commodity markets.