Home Sales and Prices Expected to Hold Pretty Steady

Wednesday, November 10, 2010 08:28 AM

Prince George, B.C. – The BC Real Estate Association is forecasting a 1.2% increase in home sales in Prince George next year, and no change in the average home price.

That compares to a forecast of an overall 5% increase in residential home sales in the BC Northern Real Estate Board (BCNREB) area in 2011, with a total of 3,900 homes changing hands through the Multiple Listing Service® (MLS).

The forecast from the B.C. Real Estate Association notes the region is far more diverse economically than it has been in the past, but , it points out that communities reliant on forestry will continue to face challenges from a weak US housing market. “Despite a rally in lumber prices, housing starts in the US remain at one-third of peak levels. While weakness in US new construction activity is expected to continue through 2011, robust US household formation of over 1.2 million annually will eventually draw down existing US housing inventories and ignite lumber production across the province”

As far as the average residential price is concerned, the prediction for Prince George is a 3.2% increase this year to $243,000, and no change in 2011.

Overall, throughout the full region, the annual average MLS price is expected to go up 1% this year, and edge down 1% in 2011.

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Posted on Wednesday, November 10, 2010 08:28 AM in News by 250 News

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Comments

Posted by: hood rich on November 10 2010 9:16 AM

Any reason why the number of sales would increase with expected interest rate hikes? It is assumed that the record low rates we currently in would have convinced most home buyers to already purchase. Any major projects planned for the region?

Posted by: gus on November 10 2010 9:42 AM

There seem to be more frequent font formating problems on the site recently .... The article fonts are rather large

Posted by: gus on November 10 2010 9:51 AM

"Any reason why the number of sales would increase with EXPECTED interest rate hikes"

I would think that when people hear talk of expected interest rate hikes the ones who have been sitting around on the verge of buying will try to speed up the decision.

But that just moves a likely future action closer to the present without increasing actual demand.

I doubt that minor interest rate hikes will affect the decsion of whether to buy or not in most cases.

Posted by: He spoke on November 10 2010 11:29 AM

The selection out there is not great. It seems to be pretty much picked over and or over priced. The inventory of houses on the market is a bit short. Which typically means that the price will start to hike up on reasonable ones.(in contrary to what the experts says). I doubt any great shifting of prices will occur between now and by the time the snow melts again. But, I would say next spring the houses are going to come on stream.

Posted by: Andyfreeze on November 10 2010 11:32 AM

I've noticed the font issue too gus!
Thought it was my computer!