(Photo by MyPGNow.com staff)
2021 continues to be a banner year when it comes to home sales across the north.
According to the BC Real Estate Association’s (BCREA) fourth-quarter forecast, unit sales are up 38% from last year.
Chief Economist, Brendon Ogmundson expects the region to hit 5,300 home sales by year’s end.
“That’s going to be really close to the all-time record, which was set back in the mid-2000s at about 56-hundred or so sales, so not a record year in the north but it’s going to be really close.”
The record was 5,564 units set in 2006.
While housing supply remains sparse for much of the north, Prince George continues to lead the way when it comes to housing starts.
725 houses will break ground in the northern capital this year, up from the 452 starts that occurred in 2020.
Ogmundson adds PG is following the lead of other cities that are enjoying a similar pattern.
“It’s kind of a trend all across the province. The province as a whole is tracking at about 47-thousand housing starts this year and that eclipse the old record, which was set just a couple of years ago of about 44-thousand, so really strong construction activity overall.”
The average house price in our region is projected to be $392,000, a nearly 18% hike from 2020 where the price was just under 333-grand.
Heading into 2022, home sales are expected to remain at a robust level with 46-hundred unit sales being predicted.
Despite the slight decline projected (when compared to the 2021 sale numbers), Ogmundson still expects the north to be at the forefront of BC’s economic recovery with major projects like LNG and Coastal Gas Links progressing.
“We have those huge capital projects across the north that are really going to drive employment so we are expecting the north to have a really strong 2022 in terms of economic growth, which should also propel housing markets.”
While northern markets continue to be undersupplied in terms of total active listings, Prince George continues to see huge growth in the number of single-detached homes with 3,800 being forecasted.
“We are seeing a 20% increase in single-detached homes. I think the north is kind of interesting because I don’t think it got the same relocation demand as other markets. It’s a bit further of a commute if you have to do it from Prince George or further north to Vancouver. Some of that relocation of people working remotely perhaps or looking for more affordable space – maybe that didn’t quite make it all the way to the north.”