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.