Clear Full Forecast

Housing Sales Expected to Cool

By 250 News

Tuesday, May 06, 2008 03:54 PM

Prince George, B.C. - The B.C. housing market is expected to cool somewhat over the next couple of years, especially in communities which are forestry based, although Prince George may not be hit as hard as some others.
The BC Real Estate Association says home sales are “retreating from historically high levels”
The market slowdown is being attributed to what the Association calls “some weakness on the export side of the economy” along with rising prices.
In Prince George, the forecast is for a decline in sales, but increase in price:
 
2007
%change
2008 Forecast
% change
2009 Forecast
%change
Sales Detached
1,092
-9%
950
-13%
900
-5%
Avg. Price
$240,442
+22%
$248,000
+3%
$256,000
+3%
Housing Starts
328
+3%
310
-3%
305
-2%
 
The report says that while the forest sector is important to Prince George, "The economy  has become increasingly  dioverse in recent years and is better able to withstand commodity cycles than in the past." 

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Posted on Tuesday, May 06, 2008 03:54 PM in News by 250 News

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Comments

Comment Posted by: Harbinger on May 6 2008 5:45 PM
Don't ferget some more school closures. Why stick around after you lose yer job, eh?
Comment Posted by: Free Enterprise on May 6 2008 7:51 PM
-Lots of jobs here in PG.
-Very affordable housing here in PG.
-Lots of good education here in PG.
-Existing housing is still much cheaper than replacement (New Construction).
No where else to live in BC that has such a fantastic upside in all areas. Prince George is a great city.
Comment Posted by: owl on May 7 2008 12:58 AM
“some weakness on the export side of the economy”

oh??? .... I did not know that....
Comment Posted by: Eagleone on May 7 2008 1:40 AM
If we go back a few more years it will be more like houses have gone up over 100% and yet home sales have dropped in that same time nearly a third. Supply and demand at work... or speculation... you be the judge.

IMO the only reason a new house price is climbing is because the cost to get a city serviced lot has gone through the roof. Its to the point now where its cheaper to buy an old house, tear it down, and then use that as a serviced lot. I blame the city.
Comment Posted by: Eagleone on May 7 2008 1:46 AM
So when the mills are all closed this summer starting with Winton Global, followed by Lakeland, Carrier, Clear Lake, Rustads ect and people are told their mill will not be starting back up until September 09 at the earliest I wonder how many people will still want to hang around on EI that long (especially after getting kicked in the nuts with no severance pay). I think we will have to stick a fork in it (housing market) till at least 2010.

If you want a new home the only option is to build it for its real cost and live in it for a long time, otherwise buy used and owe more than you can sell it for in short time and then be trapped till the lumber gods return.