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.