Soft real estate market requires both traditional and unusual approaches

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As Prince Rupert's real estate market suffers the ups and downs of a nervous economy, the city's real estate agents seek out ways to highlight their listings and bring success for their clients.



Monday's Daily News outlined the concerns of one would be vendor and the approach of one of Prince Rupert's real estate agents in trying to move the property from listed to sold...

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Realtors thinking outside the box
With housing sales in the city called 'soft', new ideas taking hold
By George T. Baker
The Daily News
Monday, February 02, 2009
Pages one and five


Rob Ferguson has his concerns about selling his house in Prince Rupert.

Certainly the price has exponentially increased since the day he purchased it back in the early 80s - $75,000 compared to $239,900 he's asking for it now.

But investment aside, he's going through the same kind of jitters all house sellers go through, asking himself will it sell, for how much and when it does will he be happy with his return?
"I've found it very frustrating," said Ferguson during his open house on Saturday.

Selling homes is, during the best of times, a roller coaster. The turn of the millennium in B.C. has seen a steady boom in success for real estate agents and home sellers alike.

According to a recent British Columbia Real Estate Association report, the number of homes selling in 2007 from 2000 increased by 40,000, with a peak of about 110,000 homes sold in 2006.

In 2008, that number fell across the province by 31 per cent from 2007.

Specifically, in the northern region of the province, December numbers are pretty much reflective of the provincial average, with sales totals sloping downward by 31.9 per cent from the year before. Last month, 141 units changed hands in the region, compared to the year before when 207 units were transferred.

Prince Rupert Real Estate agent Keith Lambourne remains optimistic, if not sounding a bit like Stephen Harper, when he says perhaps now is the time to buy.

"I'm not a fortune teller and all I can say is right now is a good time to buy a house," said Lambourne.

Lambourne has been entrusted with selling Ferguson's home and hence was at an open house on Saturday where the crowd wasn't exactly beating down the door to have a look-see of the handsome two-storey home.

Open houses is something Lambourne expects to be doing more of in the foreseeable future, as it is one of real estate agents most effective tools at generating interests in homes.

"You got to show a little bit more initiative when the market is this soft," he said.

It isn't the price or the condition of the house but the way things are going around the world, according to BCREA chief economist Cameron Muir.

In his December report, Muir said the world's financial troubles has rolled numbers downwards and hurt home purchasing confidence throughout the later-half of 2008.

"The housing market came in like a lion and went out like a lamb in 2008," said Muir. "Home prices reached a record high in March, but edged lower during the balance of the year." The average residential sales price hit $483,291 in March and ended the year at $429,210, an 11 per cent decline in nine months.

"The global financial crisis, a sharp correction in the equity markets and a recessionary environment in Canada has wreaked havoc on consumer confidence," added Muir. "While it's difficult to predict when consumer confidence will strengthen, home affordability is quietly improving as lower prices and mortgage interest rates increase the buying power of BC households."

Ferguson, who has lived in Prince Rupert so long he can remember working on the original construction of the port facility long before any intermodal system was discussed, said that he realized selling his home right now was bad timing but it was something he wanted to do.

"It is time to move on," he said.

West side/ East side stories markedly different from assessments

Assessment notices arrived in our mail boxes this week, and if the Daily News has divined the prospects correctly the folks with the view homes on the west side will be getting a sizable break on pending taxes this year, while folks over on the east side of town will find the savings to be much more modest.

The savings were made possible through a roll back of assessment values by the BC Government to reflect the 2007 assessment year, making properties which have seen a marked increase in value in the last twelve months still rated at 2007 levels.

The details on the impact of the assessment comes at the same time that the BC Northern Real Estate Board just in time for us all to learn that it's taking longer to sell a house and we'll most likely have more competition should we wish to sell.

The twin stories of real estate were found in Friday's Daily News.

SOME HOMEOWNERS GETTING A BIGGER BANG FOR THE BUCK
More expensive homes will see bigger savings in property tax thanks to province's changes

By George T. Baker
The Daily News
Friday, January 09, 2009

Pages one and three

B.C. Premier Gordon Campbell's plan to assess property values at July 1, 2007 rates could create winners and losers in the way Rupertites will pay taxes in 2009.

According to information available to the public on the BC Assessment website, home owners, office owners and establishment owners with the biggest property increases will incur the biggest savings on their property taxes this year, while those with lower-valued properties will save negligibly.

"The premise for property tax is the people who have the biggest property should pay the biggest, most expensive tax bill. But if they use the previous year tax evaluations, the person whose property value has increased in value the most is not going to be paying their proportionate amount this year," said the City's Chief Financial Officer Dan Rodin.

Normally, the city would have to calculate the market adjustment for the price differences in homes but because most owners are expected to peg their taxes at 2007 property value assessments, Rodin won't have to enter that in to part of the equation this time around.

One of the places Ruperites can see how the provincial government's plan to tag 2007 prices for 2009 taxes has created winners and losers is one of the city's top residential roads, Graham Avenue. A two-storey semi custom home, which BC Assessment rates as in "Good Condition" in the 1800 block of Graham, shot up by almost $300,000 in one year, from $639,000 to $936,000.

The tax savings on that home, thanks to the one-year roll-back, are considerable compared to a smaller home elsewhere in the city that has not gone up in value.

On the east end of town, where property on average is considerably cheaper, taxes saved are considerably less.

One east side home, in the 1100-block of Eight Avenue East, saw no change in property value at all, staying neutral at $235,200. However a home in the same block saw its value jump from $104,000 to $119,300.

All this means is someone is going to have to pick up the slack for the City of Prince Rupert once the budget is decided on later this year.

"Of course, the other side of the coin is if you're a pensioner and through no fault of your own your property tax has rocketed past your pension payout because of an increase in value, you might think this is fair," said Rodin.

The 2008 property tax rate for 2008 will be two per cent again this year and Rodin could not say what to expect for 2010.

"Right now, we are in the process in planning the 2009 budget, so right now our concerns are a little more immediate," said Rodin.

Fewer homes selling across Northwest B.C.
But the average price of a house is holding firm
By George T. Baker
The Daily News
Friday, January 09, 2009

Page three

Property values continued their upward climb in 2008 but there are now more homes for sale at the beginning for 2009 than there were at the beginning of 2008.

According to the BC Northern Real Estate Board's final 2008 report, the average property price in Prince Rupert climbed to $186,511 last year, up from the $164,727 but sales iced after a blistering 2007.

A total of 109 homes changed hands in 2008 compared to 194 homes in 2007, and while the numbers might look icy on paper, as the real estate economy has slowed, local BCNREB director Victor Prystay said we could see a bounce-back in 2009.

"I want to believe and I have to believe 2009 will be a better year than 2008," said Prystay.
According to the BCNREB, 152 properties worth a total of $28.51 million changed hands in Prince Rupert, which was down by almost half of the 2007 totals when $44.71 million changed hands.

Almost half of the homes sold went for less than $173,500 even with the average price was $186,511.

However, by the end of the year there were 252 properties available for sale, which is up from the 157 from 2007.

"Part of the malaise of the 2008 year was the fact that the first ship arrived at (the Fairview container port) at the end of October 2007 and then the first eight months there was only one ship per week and the consequence of that the longshoremen by-and-large weren't really getting many hours a week," said Prystay.

Prince Rupert did not suffer alone through 2008 as the whole Northwest real estate market took it on the chin when it came to sales.

In Terrace, while the property price was slightly higher than Prince Rupert's at $207,459, there were only 168 total sales in 2008 compared to 220 in 2007.

In Kitimat, only 85 properties were sold compared to 129 the year before.

Sales fall but prices hold in Northern BC real estate

2007 was wild and the start of 2008 strong, but as 2008 nears its end, the real estate market has cooled down significantly in Prince Rupert.

It's a shift in fortunes that has begun to change the dynamic of the Prince Rupert real estate scene, moving the market from a sellers market to one where the buyer is firmly in control at the moment.

Thursday's Daily News features some background on the current state of our real estate market with an eye towards the future, that for now seems dependent on the fortunes of the Port of Prince Rupert, the review was featured as the front page, headline story.

SHARP FALL IN NUMBER OF HOMES SOLD ACROSS NORTH
By George T. Baker
The Daily News
Thursday, November 13, 2008

Pages one and two

Real Estate sales numbers in B.C.'s North have dropped 22 per cent from last year, according to the B.C. Real Estate Association.

In its Fall 2008 report, the BCREA said that homes sales across the region had fallen to 4,240 homes from 5,400 from the year before.

"In a slow market there is a certain segment of the population that will always end up being able to make a (property) purchase and the fact of the matter is that it really is a buyers' market in Prince Rupert," said Victor Prystay of Royal LePage Prince Rupert.

But the news isn't all bad. The BCREA expects sales to bump up by four per cent in 2009, and home prices have grown by 10 per cent since last year.

However, the association warns those numbers were achieved in the first six months of the year and the average price for 2009 is expected to be seven per cent lower.

BCREA Chief Economist Cameron Muir said this is not just a regional decline, but also a provincial one.

"It's a reflection of what is going on in B.C. The North might have seen a 22 per cent drop but Vancouver saw a 30 per cent drop," said Muir.

He added that it was all about consumer confidence, saying that higher fuel charges, lowered value on investments and a weakening US economy all impacted the North directly and made buyers wary of spending.

"I think the housing market should trend back to balancing out sometime next year but in the meantime housing affordability is quietly improving," said Muir.

Historically, this is all part of the up-and-down style of the North Coast economy, said Prystay.
Figures from the BCREA show that Northern home prices have ridden a sales rollercoaster during the past 14 years. In 1994, a house could be had for just over $100,000. By 2000, growth flat-lined after a small increase in the late 1990s and had since risen steadily, peaking at around $250,000.

Prystay, however, remains quite optimistic about the future of local housing sales.

Prystay said that the housing sales numbers started taking a hit in late January and have remained almost stagnant since then.

"Last year (2007) was big. And the early part of the year was fairly strong and then it died right off," said Prystay.

He added that Prince Rupert's economy is reliant on the Port of Prince Rupert and that you can point to the different happenings in the past year with the port as an indication of housing sales.

"Our economy is driven by what is happening at the port. So what we had was the first ship arrival in Oct. 31, 2007, and there were lots of people getting hired, moving up from Vancouver, who had money to spend.

"But the reality of that first eight months of port activity is there was only one ship per week," said Prystay.

With the slow build to the port's business, some workers who might have purchased a home were reticent to do so until the hours picked up at the port.

Price reductions and an increase in inventory the orders of the day for Prince Rupert real estate so far this year

“Certainly right now we’re seeing a lot of price reductions because I think we did get a little bit ahead of ourselves late last year, but I’m confident that by the end of this year or early next year the Prince Rupert market is going to turn around.” – Prince Rupert realtor Victory Prystay, reading the tea leaves of Prince Rupert real estate.

Last weeks Real Estate report as outlined here on Podunk over the weekend, has provided its regular snap shot of the Prince Rupert real estate market, which at the moment is looking at an increase of houses on the market but a reduction from last year in the price that sellers are receiving.

The Monday Daily News outlined the view from the local realtor Victor Prystay, who provided his interpretation of the numbers provided and the impact on and the future of the Prince Rupert market.

Rupert real estate market takes a bit of a dip
By Kris Schumacher
The Daily News
Monday, October 6, 2008
Pages one and five

Prince Rupert currently has almost twice as many properties for sale as it did the same time last year, and the number of property sales has dropped by more than 25 per cent.

The B. C. Northern Real Estate Board reported last week that after seven years of record sales, thus far 2008 has seen overall sales in the region down by 26 per cent since September 20, 2007.

Since Jan. 1, 2008, 124 properties in Prince Rupert worth $24.8 million sold through MLS, compared to 201 properties worth $35.9 million in 2007.

“In a changing market like we are currently experiencing in most areas of northern B. C., sellers must be aware of local trends,” said BCNREB President Willy Berger.

“Price and condition of home are currently more applicable than ever, for those sellers who want to sell in a reasonable time period.

“It is a good market for buyers in most of our communities; a good inventory gives them time a bit more time to choose that ‘dream home.’

After a strong year for all communities in the Northwest region in 2007, the BCNREB had a very positive outlook for 2008 although they did expect the real estate market to settle down.

The median average price of the single-family homes sold in 2008 has increased to $172,500, up from $164,727 at the end of 2007.

However the increase is much less dramatic than in the last two years prior, given that the average home in Prince Rupert sold for $118,738 in 2005.

“Since the whole market instability began when oil prices took off three or four months ago, I think that everybody was getting kind of nervous and there was a palpable sense of people saying ‘Let’s just sit and watch all this,” said Victory Prystay, BCNREB board member.

“But I think our market, as we have reinvented our economy and focused on the container port, is driven a bit differently than other markets.”

“Certainly right now we’re seeing a lot of price reductions because I think we did get a little bit ahead of ourselves late last year, but I’m confident that by the end of this year or early next year the Prince Rupert market is going to turn around.”

The cities of Terrace and Kitimat also saw similar decreases in the number of properties sold this year in comparison to 2007.

In the first nine months of 2008, 249 properties changed hands in Terrace, down significantly from last year’s 336 sales worth $52.6 million in the same period.

Sales in Kitimat dropped from 151 properties worth $19.4 million to 114 properties worth $16.7 this year.

As the sales slow, the options grow

As we reported on this here blog on Thursday, the figures for the first quarter of 2008 are in for the real estate markets of the North British Columbia.

A trend of slowing sales, but growing listings marking the far western end of the Northern BC Real Estate Boards wide swath of land.

And real estate being real estate, it's always best to be positive, eh, so slowing sales mean more time for lookie loos to find that dream home, hopefully at a mutually beneficial price to vendor and vendee...

The Daily News captures the moment with their front page story from Monday's paper.


REAL, ESTATE MARKET SLOWING BUT BUSY SEASON SET TO START
More homes for sale locally means extra choice for would-be buyers
By Leanne Ritchie
The Daily News
Monday, April 07, 2008
Page One

The real estate market is starting to loosen up a bit in Northern B.C., with an increasing number of properties on the market for buyers to choose from.

Willy Berger, president of the B.C. Northern Real Estate Board, noted that as of March 31 there were 3,604 properties of all types available for sale in the North, up from 2,858 this time last year.

"Spring is here in most of our communities. The real estate market is getting active. Buyers are out looking and sellers are taking this opportunity to market their properties. Compared to the first quarter of 2007, buyers have more properties to choose from and a few more days to make their decision," he said.

In Prince Rupert, the number of properties available for sale was 167, up from 126 at the of March 2007.

In addition, it appears that sales have also slowed.

Across Northern B.C., in the first quarter of 2008, sales of properties of all types were down by 21 per cent compared to the same period last year. To the end of March, 2008, a total of 1,051 properties with a value of $219,611,298 have changed hands in the area serviced by the BC Northern Real Estate Board.

"With the current interest rates remaining low, we are anticipating a strong spring market," said Berger.

In the first quarter of 2008, 47 properties in the Prince Rupert area, including the Queen Charlotte Islands, changed hands. They were worth $9.5 million. This compares to 60 properties worth $12.5 in the first quarter of 2007. The median price of the single family homes sold was $144,500 - almost the same as last year's median of $145,000. On average, it took 68 days for a single-family home to sell.

Sales in Terrace are actually up so far this year. To date, realtors have sold 65 properties worth $12.7 million, compared to 62 properties worth $7.6 million in the first quarter of 2007.

Half of the 42 single-family homes sold this year had a median price of $200,000 or less, and on average, these homes sold in 52 days. As of March 31, there were 188 properties available for sale in Terrace, up from 173 properties available at this time last year.

In Kitimat, sales increased in the first quarter of this year. Thirty six properties worth $4.4 million sold in the first quarter, up from 26 properties worth $3.2 million in the first three months of 2007. Half of the 21 single-family homes sold for less than $139,000 and on average, these homes took 61 days to sell.

Housing prices rise, but homes still affordable in Northwest

The Daily news catches up to the weekend news about housing in Northern BC with a front page story on the latest data from the BC Northern Real Estate board.

HOUSE PRICES CONTINUE TO SPIRAL UP ACROSS REGION
But despite rises, homes affordable compared to much of the province
By Leanne Ritchie
The Daily News
Monday, July 9, 2007
Pages one and five

Following the national trend, housing prices in Prince Rupert are continuing to rise.

According to the latest data by the B. C. Northern Real Estate board, the average house price has risen from #147,873 in June of last year to $160,935 in June of this year.

Glen Holling, president of the B. C. Northern Real Estate Board, said he has confidence that real estate in northern B. C. will continue to appreciate as the economy strengthens in the natural resource sector, as well as as a result of the opportunities due to the Port of Prince Rupert opening this fall.

“These factors, together with low residential building starts in some areas along with steady demand will likely have the effect of causing further price increases, although our prices still remain far below the provincial numbers and housing is still affordable for the average family.”

In the area covering Prince Rupert and the Queen Charlotte Islands, a total of 131 properties worth $23.7 million sold in the first six months this year. This compares to 113 properties worth $14.3 million selling in the first half of last year.

And the number of houses on the market continues to tighten. At month end, there were 172 properties of all types for sale, compared to 179 on June 30 last year.

“Almost all our communities are seeing a continuation of the strong market we saw last year. Prices have stabilized in most places and we have a healthy number of properties available for buyers to choose from. We are fortunate that there are affordable housing choices for the average family in the North,” said Holling.

Prices are also continuing to rise in Terrace and Kitimat.

The average home in Terrace sold for $138,363 in June 2006 and $179,070 in June 2007. In Kitimat, the average home sold for $121,777 in June 2006 and $133,354 in 2007.

In the area encompassing northern B. C., 3,408 properties sold in the first half of 2007 compared to 3,421 in the same period last year, and 3,011 in 2005. The value of these properties totaled $635.8 million compared to $502 million last year, and $386 million in 2005.

At month end, there were 3,515 properties of all types on the market, compared to 3,669 last year and 4,700 in 2005.

Overall, Canada’s resale housing market gained “astounding” momentum in the second quarter with the national average house price expected to increase by 9.5 per cent this year, the Royal Lepage Real Estate Service said on Thursday.

Royal LePage estimates the average house price will exceed the $300,000 mark for the first time to hit $303,300.

An estimated 522,306 home sales transactions – an increase of eight per cent – are projected by the end of the year. Analysts say the market could cool in the Bank of Canada decides to raise interest rates again. The bank is slated to meet this week.

Real Estate still a hot property in the Northwest

Terrace is leading the Northwest when it comes to the latest numbers of the Northern BC Real Estate board, as 192 properties have been sold since the start of the year worth some 27.8 million dollars compared to 131 properties in Prince Rupert worth 23.7 million and 80 properties in Kitimat worth 9.7 million.

The numbers were taken from MLS listings across the North and don't include private sales or non affiliated vendors such as Property Guys and such.

In Prince Rupert the total number of properties sold is an increase of 28 properties from the same time last year and an increase of 9.4 million dollars in property worth. As of the end of June there were 172 properties of all types on the market locally, compared to 179 a year ago.

The Opinion 250 website had full details of the real estate scene for Northern BC here, but for Northwest residents we provide the relevant details below.

NORTHWEST REGION

Prince Rupert: sold a total of 131 properties worth $23.7 million through the MLS® this year, compared to 113 properties worth $14.3 million by the end of June last year. The accompanying chart shows comparable prices for single family homes over last year, but the median price this year (half sold for less) for the 100 homes sold was $152,000. At month end there were 172 properties of all types for sale, compared to 179 on June 30th last year.

Terrace: sold a total of 192 properties of all types worth $27.8 million so far this year. Last year in the same period 176 properties with a total value of $21.5 million sold. Half of the 97 single family homes that sold through the MLS® since January (see chart following) have sold for $164,500 or less. The number of days these houses took to sell dropped from an average of 58 days last year to 38 days this year. At month end there were 204 properties in all categories for sale, down from 275 on June 30th last year.

Kitimat: 80 properties worth a total of $9.7 million have sold through MLS® since January 1st, compared to 92 properties (all classifications) worth $9.8 million last year. The median price for the 56 houses sold in Kitimat was $115,000, virtually unchanged from 2006 (see chart following for average prices) but the number of days to sell has dropped in half from an average of 89 days a year ago to 45 this year. At month end there were 91 properties of all types available for purchase, compared to 78 last year.

Pond pumps up Rupert as destination for those looking for a new hometown

A Vancouver Sun story on a recent B.C. Northern Real Estate Board survey on housing prices and trends in BC, has added a little Rupert flair to its findings.

Mayor Herb Pond was interviewed for the article and urged families looking for a new town to live in to consider Prince Rupert. Pond spoke of a turning economy, with a cruise ship industry and the new container port as potential engines of the new economy in the northwest.

Where all these potential taxpayers might want to work was not identified readily, and judging by the want ads in the Daily News the bounty of jobs hasn’t quite arrived yet, a situation which might slow down the stampede to the northwest. But as far as painting a picture of potential goes, it was a nice bit of selling the local story.

"It's actually a very unique opportunity for young families to enter the real estate market, build equity and have a job. With the coming of the new container port, which will begin operations in October, and the expansion of the cruise ship market, there are some really good work opportunities."

Pond said Prince Rupert has seen housing price increases of more than 25 per cent in each of the last two years, but "it's still very reasonable."

He said the new container port will make Prince Rupert a "significant new entry port to North America for containerized goods from Asia."

The mayor’s contribution to the article was but a small part of a larger picture of an exodus of lower mainland residents both young and old, who are spreading out northwards from the Langley Town line, seeking affordable housing and a slower paced lifestyle.

The new exiles are buying homes along the Highway 97 and 16 corridors, taking advantage of housing costs that are at least half of what they are used to in the Lower Mainland.

The report also shows how a move north can turn your debt ratio of homeownership around almost 180 degrees. In Vancouver and Victoria, it’s estimated that it takes about 70 per cent of you pre tax income to pay down a mortgage on a home, while those in the northern communities may only have to spend 30 per cent of their income.

Which explains why more and more folks who can pull it off jobwise, are thinking of leaving the lower mainland, buying a house outside the GVRD and saving a large amount of money for other more important things than paying their bankers for the opportunity to rent their own homes.


Homeowners are moving on up
With jobs for skilled trades, you can retain your income
Brian Morton
Vancouver Sun
Wednesday, May 23, 2007


If you're looking for an affordable way of life, just sell your home and head north.

That's the conclusion of a survey by the B.C. Northern Real Estate Board, which found that despite average house price increases of 30 per cent across northern B.C. last year, owning a home in the region consumes less than half what a homeowner in Vancouver would pay in terms of proportion of household income.

"We know our home prices don't compare to prices in the Lower Mainland, the Okanagan or Vancouver Island," BCNREB president Glen Holling said in an interview. "But if you were to move into a northern community and retain your income, you'd find it extremely affordable."
According to the BCNREB report -- commissioned after RBC Financial Group released the results of a cross-Canada housing affordability study showing that B.C. was the least affordable place to buy a house -- the Housing Affordability Index (HAI) for northern British Columbia stood at 28.9 per cent, compared to 68.5 per cent for Vancouver and 62.5 per cent for B.C. as a whole.

The index estimates the proportion of pre-tax median household income needed to cover mortgage costs, municipal taxes and fees, and utilities for single-family homes.

What the index means is that the typical household in Vancouver will spend almost 70 per cent of its pre-tax income toward homeownership, while the typical household in northern B.C. spends less than 30 per cent of its pre-tax income on homeownership.

The report notes that the affordability difference has persisted despite recent double-digit increases in prices of single family homes in northern B.C.

Drew and Susan Miller are waiting to move into their 2,900-square-foot log home on two hectares (five acres) in Williams Lake, which they recently bought for $270,000.

The Millers moved to Williams Lake after selling their home in Chilliwack -- similar in size to their new log home, but on a three-quarter-acre lot -- for $525,000.

"My husband's company was restructured," Susan Miller said in an interview on Tuesday. "We weighed our options -- our older children live here already -- and we thought it was a good time to sell and move to Williams Lake. We both love it here. It put us in a very good position."

Miller said her husband found work in construction.

"A lot of people from the Lower Mainland are moving up here. A lot of people want to get out of the rat race. There's a ton of work, and it's a better atmosphere for kids. And the housing is a lot more affordable."

The area covered in the survey includes most of B.C. north of Kamloops, including Prince George, 100 Mile House, Williams Lake, Kitimat, Prince Rupert and Fort St. John, but not Dawson Creek, Tumbler Ridge or Chetwynd.

The survey noted that, despite the overall affordability for the area as a whole, there were significant differences between individual towns.

Kitimat had the most affordable housing (14.1 per cent), while homeownership in 100 Mile House consumes the highest proportion (45.6 per cent) of median household income in the area.
The survey notes, however, that housing prices jumped over 50 per cent in the past year in 100 Mile House, lowering that town's affordability.

Kitimat recorded the lowest housing prices, but significantly higher incomes than other communities in the survey.

The average single family home price in the survey area was in the $190,000 range, with Prince George and 100 Mile House the most expensive.

Holling, who is based in Williams Lake, said word is getting around, with many retirees showing up in northern communities. "We're seeing strong interest from southern B.C. Some people buy one house to live in and another one to rent. And there's the retirement income. I think this survey will make more people take note."

He notes, however, that not everything is affordable. "100 Mile House is less affordable. But it's a huge recreational property area."

Holling also said the north's economy is turning around. "We had a struggle from '99 to early 2006, but things are starting to turn. We're seeing mines reopening. And income levels here are quite high in the trades."

Despite that, there are a number of discrepancies in economic opportunities in northern B.C., according to a Statistics Canada report.

The report noted that among the regions, unemployment rates were just 3.7 per cent in northeast B.C. (the lowest in the province), compared to 8.6 per cent in the North Coast-Nechako (the highest in the province). The Cariboo's unemployment rate was 5.2 per cent, and the provincial average 4.4 per cent.

The Statistics Canada report also said that during the first three months of 2007, the value of building permits issued in the province increased 15.8 per cent over the same period of last year, with the Cariboo ( 27.2 per cent) standing out in terms of growth. Housing permits rose modestly in the North Coast ( 2.7 per cent), but declined in the northeast (-3.4 per cent) and Nechako (-28.2 per cent).

Fort St. John Mayor Jim Eglinski said in an interview that his community is experiencing strong steady growth because of the oil and gas activity in the area.

"Our community is still facing an economic boom," he said. "We have a high 90-per-cent fill rate in the hotels and motels all the time. There's a lot of construction."

Eglinski said despite the boom, housing in Fort St. John remains very affordable compared to the Lower Mainland. "Up here, the average [single family home] is about $260,000."
He said anyone with a skilled trade could find work fairly easily. "We have the highest disposable income in B.C. and the second-youngest workforce."

Prince Rupert Mayor Herb Pond said in an interview that despite a downturn in recent years, the economy there is turning.

"It's actually a very unique opportunity for young families to enter the real estate market, build equity and have a job. With the coming of the new container port, which will begin operations in October, and the expansion of the cruise ship market, there are some really good work opportunities."

Pond said Prince Rupert has seen housing price increases of more than 25 per cent in each of the last two years, but "it's still very reasonable."

He said the new container port will make Prince Rupert a "significant new entry port to North America for containerized goods from Asia."

Local realtors prepare for a busy stretch

2006 may have been a slow year for real estate in Prince Rupert, but local realtors don’t anticipate 2007 to have the same leisurely pace. With the progress of the Container Port continuing at its on time pace, and a completion of phase one anticipated for the fall of this year it’s expected that a migration of new residents will soon arrive looking for a place to call home.

The Port has been driving most of the real estate speculation in Rupert for the last two years, from the frenzy of speculation in 2005 that saw homes turning over rather rapidly, to the steady rise in established home prices through 2006. And while last year returned the city to a more normal pace of buying and selling, it did provide a serious bump upwards in the price of housing in the city.

Last year the average selling price of a home in the city was $145,890, with a lack of new construction in recent years and a shortening up in the supply of established housing in recent times, its anticipated that housing prices will increase with the arrival of new residents to the city, brought in by the growth of the port.

The Daily News had a comprehensive look at the state of real estate in their Thursday edition.

RUPERT’S REALTORS BRACED FOR BUSY 2007
By Leanne Ritchie
The Daily News
Thursday, January 4, 2007
Pages one and three

Real estate sales in Prince Rupert slowed in 2006 but 2007 should bring an influx of new residents seeking housing according to Ted Shepard, president of the B. C. Northern Real Estate Board.

“In the Prince Rupert real estate market, we had a spike in 2005, when the funds were announced for the container port. After the initial frenzy … it settled back down to more normal levels given the economy,” said Shepard, and agent with Royal LePage Prince Rupert.

During 21006 in Prince Rupert an area which includes the Queen Charlotte Islands, 222 properties worth $28,526,776 changed hands, down from 269 worth $34,300.986 in 2005 but almost the same as 2004’s 220 sales ($21,742.425).

“With the announcement of the container port we didn’t create any permanent jobs where people would start moving back to Prince Rupert, that’s why the market settled back down to 2004 levels,” he said.

However, the supply of homes on the market did not loosen back up to 2004 levels. At year end there were144 properties of all types available for sale, up from 132 in 2005, but down from 2004’s 161.

“We are short on supply,” he said.

Half of the 150 single-family homes that sold had a selling price of less than $130.000 while the average selling price was $145,890.

With the influx of permanent workers expected with the 2007 opening of phase one of the Fairview Container Terminal, Shepard expects to see the market move again.

“I see improvement in our future starting in 2007,” he said.

In the meantime, sales of vacant land increased almost 100 percent over 2005 levels. Thirty one parcels of land of vacant land have sold in 2006, up from 17 in 2005 and eight in 2004.

“Some of it is bought by speculators, some of it is bought by locals with plans of building. There’s no definitive sector that is buying that stuff. It’s across the board,” he said.

Overall, it was a record year for real estate across Northern B. C. with property sales hitting an all time high. There were 7,055 properties worth $837.1 million.

Shepard noted that breaking the $1 billion mark was also noteworthy.

“All economic indicators point to another good year for the real estate industry,“ said Shepard.

“With such a low inventory in all market areas, prices are likely to continue to rise.”
Sales in Terrace and Kitimat both increased in 2006 over 2005 levels.

In Terrace, 362 properties worth $48.7 million changed hands, up from 322 sales worth $40.3 million in 2005. The 209 single-family homes that sold, had an average selling price of $144,205; half of the homes sold for less than $138,000.

In Kitimat, 190 properties worth $21.3 million sold in 2006, up from 107 properties worth $10.1 million in 2005. There were 70 properties of all types available for sale at year-end, down from 79 at the end of 2005.

Northern real estate sales booming

While the market may be cooling in other parts of the province and the nation, the north it seems is still in the midst of boom times, with the value of sales up more than fifty percent in the last year.

Long the real estate laggard in British Columbia, this last year saw this part of the province turn the corner in real estate, with the B. C. Northern Real Estate Board suggesting that the trend will continue for the foreseeable future.

However, like all statistics in the North, it’s very much a tale of two regions, part of the credit for the boom in sales and optimism go towards the rock bottom unemployment of the Peace area, other parts of the region of course aren’t quite as prosperous as that corner of the oil patch and it’s Alberta like economic growth. It would be interesting to see the figures broken down according to the different parts of the region to get a better view of the real estate scene in the north.

While there has been a noticeable improvement on the North Coast, it’s unlikely that it’s the same rapid change of direction that Fort St. John and similar towns in the eastern half of the region have seen. Our market seems to have been driven more by speculation over the container port project, than by any concrete turn around of the local economy. It could make for a situation that provides for a false level of activity as far as any economic indicator locally.

Regardless, there has been an increase in local properties being sold, which is a far cry from what was happening a few short years ago. This in itself is at least a sign that things might finally be heading in a better direction.

The Daily news featured the story as its front page item in Tuesday’s paper.

THE NORTH SETS THE PACE AS PROPERTY BOOM CONTINUES
After a recent lag, homes in province’s North now leaping up in value
By James Vassallo
The Daily News
Tuesday, December 5, 2006
Pages one and three

In the face of a real estate pullback around the province, the North is booming with the value of sales up more than 50 per cent in just a year.

“We’ve been lagging behind the province for about six years,” said Ted Shepperd, B. C. Northern Real Estate Board president. “We’re finally recovering and I don’t see that our trend is going to reverse,”

In October 2006, the Northern region saw a 29.5 per cent increase over October 2005 with the number of residential units jumping from 404 to 523 houses. Similarly, the value of those home sales shot up 50.5 per cent from $60.5 million to just over $91 million.

We’re going to continue to improve for the near future anyway and I think the long-term looks good too,” said Shepperd adding that those improvements will likely continue in both areas – the price of homes and the number than change hands.

The B. C. Northern Real Estate Board includes communities from Prince Rupert to Prince George to the border, including Fort St. John and Fort Nelson, but not Dawson Creek.

Overall, figures indicate B. C.’s residential sales on the Multiple Listing Service (MLS) reached $2.96 billion in October 2006, up seven per cent from October of last year.

The increase in sales volume is due to rising home prices during the last 12 months. However, in other parts of B. C. the number of homes sold is down, in some areas significantly.

The average home price in B. C. rose to $410,728 in October, up 20 per cent over October 2005, but sales dropped 11 per cent to 7,196 houses last month, the fourth consecutive month of decline.

“Home sales in the province are definitely easing back from last year’s record-breaking pace,” said Cameron Muir, British Columbia Real Estate Association chief economist. “While a strong provincial economy continues to underpin consumer demand, affordability concerns are keeping some would-be home buyers on the sidelines.”

The provincial association reports that robust job growth, rock bottom unemployment and wage and salary increases that are outpacing inflation still bode well for the housing market.

The combination of low mortgage rates and high consumer confidence has led to the major run-up in housing prices that is making it difficult for some homebuyers to find the type of house in the location they want for a price they can afford, he said.

“The B. C. housing market is now trending toward more balance between buyers and sellers,” said Muir. “The combination of less frenetic buying activity and a moderate increase in the number of homes for sale is providing more choice for home buyers and easing upward pressure on home prices.”

Although the year-to-date figures have declined eight per cent to 85, down 399 units from last year, the BCREA estimates sales will reach 96,000 units in 2006, the second highest recorded for the province.

The Great Northern Land Rush

Flush with cash from selling their over heated real estate holdings in the southern reaches of the province; it seems a number of British Columbians are helping to fuel a land rush in the North. The Vancouver Sun has a report on the hot real estate markets of Northern BC, which shows that its prices that is moving the market in the north.

The region which includes almost all of the real estate north of 100 Mile House had and increase in value of sales of 33 per cent in the first nine months of 2006, jumping to 851 million dollars from a level of 639 million, based on only an increase of sales of 14%, a trend that experts suggest is being driven more by price than anything else.

Of course every region has its anomaly, and for the Northern Region that would be Prince Rupert. Which seems to be going against the trend as the following excerpt from the sun story explains:

Bucking the trend, to some extent, is Prince Rupert, where the number of sales fell in the first nine months of the year, as did the value of sales. However, prices still increased year over year to $147,000 from $116,000.

Prince Rupert is back to the same level of sales it had in 2004, said Shepard who is a realtor in the area. But with the new container terminal expected to be operating next year, bringing with it hundreds of jobs, that's going to change, he said.

"Anywhere in our board area is a good place to invest, but Prince Rupert is lagging a little bit behind everywhere else," Shepard said.

"Prince Rupert will boom."

The Rupert will boom claim, has become kind of a mantra around here of late. A promise of better days to come and there’s no reason to doubt that it may soon come to pass. At least we hope it does, as there seem to be an awful lot of eggs in that boom basket of late. But for now, we sit on the edge of the circle while the real money traders get to work cashing in on a super heated economy in most other sections of the province.

Mind you things are still trending positive, the year to year comparison finds that Prince Rupert housing has increased in pricing since 2005. Last year at September a house could be bought for $115,923, one year later an average house here was selling for $147,395.

Not the wild profit taking that seems to be sport in the south these days, but still a fairly secure return on your investment after all.

The complete story was featured on the Vancouver Sun on line service, including its read aloud project, which features selected Sun stories provided in an audio format.

Northern B.C. real estate booming
All indicators point to prices fuelling the fire
Fiona Anderson, Vancouver Sun
Published: Friday, October 13, 2006

Real estate across northern British Columbia continues to boom, as the hot economy pushes up prices and home sales.

The value of sales covered by the B.C. Northern Real Estate Board, which is most of the province north of 100 Mile House, was up 33 per cent in the first nine months of the year, to $851.3 million from $639.6 million. But the number of properties sold only increased 14 per cent, from 4,934 to 5,647, an indication that price increases are fuelling the fire.

The biggest jump in prices has been in 100 Mile House where the average selling price for a single family home was up 56 per cent to about $200,000 from last September's price of $128,000. But what's causing the apparent skyrocketing prices is an increase in the number of higher-end properties that have been sold, and not rising prices generally, said local realtor and board director, Jim Ivens.

A lot of waterfront homes and large homes on acreages are being sold, and those go for more than $500,000, so that pushes up the average price, Ivens said. A modest three-bedroom house has only gone up about 20 per cent over the year, from about $150,000 to $180,000, he said.
Retirees and people looking for recreational property are snapping up the high-priced homes, Ivens said.

"What's happening is with people selling in the southern part of the province and making big bucks on their houses. They come up here and it just seems like a good deal because they get twice the house for the same price," Ivens said.

Elsewhere in the region, it's the economy that is fueling the strong real estate sales, said Ted Shepard, president of the B.C. Northern Real Estate Board.

The hottest areas are probably Fort St. John and Fort Nelson, where oil and gas exploration has been pumping up local economies, Shepard said. Last September, the average price of a single family home in Fort St. John and Fort Nelson combined was $191,000. Prices in Fort St. John are now $260,000, while a house in Fort Nelson costs $227,000.

Bucking the trend, to some extent, is Prince Rupert, where the number of sales fell in the first nine months of the year, as did the value of sales. However, prices still increased year over year to $147,000 from $116,000 .

Prince Rupert is back to the same level of sales it had in 2004, said Shepard who is a realtor in the area. But with the new container terminal expected to be operating next year, bringing with it hundreds of jobs, that's going to change, he said.

"Anywhere in our board area is a good place to invest, but Prince Rupert is lagging a little bit behind everywhere else," Shepard said.

"Prince Rupert will boom."

"[And] as far as quality of life goes, the north is the place to be," Shepard said. "Because if you have a place in the Lower [Mainland] and you sold it you could move north and buy a place for less money and have money left over."

fionaanderson@png.canwest.com
- This story can be heard online after 10:30 a.m. today at www.vancouversun.com/readaloud.
- - -
NORTHERN ALLOWANCE

The average selling price of a single-family home has increased substantially across northern British Columbia. Here are average prices from this September compared to a year ago:

Northern B.C. real estate booming
All indicators point to prices fuelling the fire

Fiona Anderson, Vancouver Sun
Published: Friday, October 13, 2006
Community 2005 2006 Change
100 Mile House $128,491 $200,501 +56%
Williams Lake $134,663 $175,329 +30%
Quesnel $116,090 $141,383 +22%
Prince Rupert $115,923 $147,395 +27%
Houston $84,472 $108,434 +28%
Smithers $121,437 $160,551 +32%
Burns Lake $107,714 $119,955 +11%
Vanderhoof* $102,312 $124,422 +22%
Fort St. James* $102,312 $128,000 +25%
Fort St. John** $190,755 $259,954 +36%
Fort Nelson** $190,755 $227,198 +19%
Mackenzie $98,838 $112,247 +14%
Prince George $146,832 $191,629 +31%
Terrace $126,827 $142,501 +12%
Kitimat $101,536 $123,423 +22%

* for September 2005, Vanderhoof and Fort St. James were combined; ** for September 2005, Fort St. John and Fort Nelson were combined