Tuesday, October 07, 2008

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.

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