Sales down, optimism up in Rupert real estate market

2006 may actually be a slower year in real estate transactions in Prince Rupert, but local real estate agents see much better times in the near future.

Statistics gathered ending in May show that there have been 57 less houses sold in the city this year compared to last, in 2005, 151 homes had been sold in the local market while by May of this year only 94 had been sold.

Ted Shepard of the Northern Realty Board attributes the decline in this year’s numbers, to last year’s explosion of investment real estate. Last year as the Port project was being announced properties were gobbled up by investment speculators anticipating a jump in the population and a need for housing.

That excitement has leveled off to a degree in 2006 as the project moves along its timeline, but with completion anticipated for next year, it’s expected that 2007 will be another good year for real estate locally.

The Northern View had a look at the statistics and the interpretation of them, in its August 23rd edition.

REALTY BOARD “OPMTIMISTIC”
By Shaun Thomas
The Northern View
Wednesday. August 23, 2006
Page 4

While real estate sales to date in 2006 are below the 2005 levels, with 151 houses sold to the end of May in 2005 compared to 94 this year, things are looking good for the market in the future according to local real estate agent and Northern Realty Board President Ted Shephard.

“From here on I expect it will continue to have steady prices and, as the container port comes on stream and there is an increase in permanent workers coming to Prince Rupert for work, the market will get more active and there will be more demand,” he said.

“I suspect next summer will be especially busy as people look to move their families to the city to get their kids ready for school.”

Following the closing of the mill, Shepard said the real estate market lost approximately 50 per cent in both sales and housing prices up until the announcement of the container port last spring. That announcement caused a jump in the price of housing and the number of houses sold, which has since leveled off resulting in a “slow buy steady” market in 2006. And while people moving to town will be a big part of the expected increase next year, Shephard said the number of people looking to Prince Rupert’s real estate market as an investment opportunity still accounts for a number of sales in the community.

“Investment is what drove the realty market in 2005, and that leveled off, but in the past few days I have seen more small investors in town and large investors inquiring about housing as well.”

“We’re pretty optimistic about the future here in Prince Rupert.”