Real Estate Market Expected to Cool

Friday, April 27, 2007 04:01 AM

The BC Real Estate Association is predicting housing prices throughout B.C. will continue to climb, although they won't go up as quickly and sales will ease off. The picture painted by the Northern Real Estate Board is much the same.

According to the report, the average price in Prince George was just under $196 thousand dollars in 2006, that is up 33% over the previous year. The increase in housing price will slow to 20% this year, and 5% in 2008.

The Board also prediucts a slowing in housing starts, with a drop of 1% this year, and a further 7% slide in 2008.

For the entire northern district, the picture is similar, with total sales forecast to slip 4% in 2007 and a further 2% in 2008.

The Board says "A sizeable pent up demand has already been realized in many northern markets. With the exception of Fort St John population declines were recorded in many urban areas between 2001 and 2006. Williams Lake, Quesnel, Prince Rupert, Kitimat, Terrace and Prince George experienced population declines of between 2 and 13 percent during this period, however, this trend is counter balanced by an increase in recreation and investor buyers."

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Posted on Friday, April 27, 2007 04:01 AM in News by 250 News

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Comments

Posted by: ICEMAN on April 27 2007 12:39 PM

sell now while you can, while prices are high. In a few years homes will be cheap, and all the people with $400,000.00 mortgages will be in trouble

Posted by: Chadermando on April 27 2007 5:15 PM

I agree. May 4th Canfor announces their new direction, and this last month saw the biggest US housing drop in 18 years. People forget the forestry sets the benchmarck for our economy and forestry is in for some huge challenges over the next few years.

Posted by: Andyfreeze on April 27 2007 5:55 PM

The decline has to come eventually. To think otherwise could be a big financial boo boo for somebody.The market goes in cycles up and down and is directly related to industry..No suprises there.
And watch out for the interest rates to rise.That could REALLY hurt!And they will rise.The question is how soon.My guess would be by next spring.
And yes,the changes in the forest industry are coming.That in itself will change the market in general.There is still a lot of denial by many involved but it WILL come, and it WILL change the way forestry related companies do business.
Being informed and prepared will go a long way in keeping everything on an even keel.

Posted by: charles on April 27 2007 7:36 PM

I would have to agree with the first three posts.

Andyfreeze, I think our economic ups and downs are directly related to our societies respect (or lack of respect) for money. Right now I think the lack of respect for money is at a record high (along with the amount of debt in this country). Everyone thinks money grows on trees, and that the good times are here forever. The rising debt levels are spiralling out of control. The only way people will be taught to respect money is if we have a fairly significant recession which results in a lot of pain for a lot of people. The only question now is, when will this recession happen. The longer the debt bubble in this country is allowed to grow, the more painfull the enevitable "adjustment" process will be. Our society is simply living beyonds its means, and this is simply not sustainable.

Posted by: Andyfreeze on April 27 2007 8:13 PM

I agree charles.Respect for our hard earned dollars tends be lowest when the economy is the strongest.I think there is a tendancy to take it for granted, as if the gravy train was never going to end.
It will end, and while most of us will survive just fine,a great many will lose their shirts!A direct result of living beyound their means!

Posted by: lmorg on April 29 2007 2:33 PM

Once the beetle kill is harvested or no longer viable to harvest, not only will the market cool, it will freeze over.