Prince George Housing Market Will Remain Strong

By Ben Meisner

With the average home sale rising from $214,000 in Prince George to $242,000 dollars according to the Northern Real-estate Board you have to wonder just what is keeping the housing market "up" in this region?

There are a number of considerations to be made.

The cost for a mortgage has never been lower, a mortgage that is not locked in can be had for less than 2%, that in itself has opened the door to many new home buyers in the market. Payments that formerly took upwards of $1500.00 dollars a month from the average family income have been reduced to $1100.00.

While the unemployment rate in Prince George and area is very likely in the 15% range not the 11% as the statistics show, one of the family membrs is working which has been the saving grace in many homes.

The economists suggest that forestry only contributes about 31% to the city's economy; the balance is made up of many other employment sources.

When you add all of these tid bits you get to understand why the house prices have increased in this region.

What does it all mean?  Well unlike the USA where the housing  prices  have dropped through the floor , and fully 1/3 of all mortgages are in some sort of arrears , we have not had the same fate.

Could the market collapse?  It is hard to see how that could happen  given the market as it now is viewed. Unless there is a return to 20% mortgages (as happened in the early 80's) housing prices are likely to continue to climb under a strong market demand.

I’m Meisner and that’s one man’s opinion.

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