Northern BC housing market cooling off due to sawmill curtailments, economic downturn
RiverBend Seniors Housing on 20th Avenue (Vista Radio staff)
The housing market in the north remains cool according to the BC Real Estate Association.
Home sales in the province dipped nearly 12-percent in June compared to the same time last year.
Deputy Chief Economist, Brendon Ogmundson told Vista Radio Prince George and the rest of the north saw some mixed results.
“Sales are down about eight percent and we’re still pretty supply-challenged in the north so even though demand is a little bit lower there’s still quite a bit of upward pressure on prices and we saw average prices in the northern board area up about nine percent.”
He adds some industrial and economic challenges are to blame for the recent slowdown.
“It’s been a bumpy few months and some of that is just sort of factors outside of the region as well as others like the curtailments to sawmills and just a general downtrend in the economy and I think that is still a temporary thing.”
“I think longer-term the story is still pretty positive as you are going to see a lot of economic development in the north and that’s going to leak into the housing market and we are going to see housing demand bounce back.”
Ogmundson adds the northern capital as a whole was flat in terms of sales during the month of June with prices up around five percent, where outlying areas outside the city decreased.