Written by Mark Nielsen
Citizen staff
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Wednesday, 04 November 2009 |
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In a housing market outlook released this week, CMHC said 975 single-family homes will be sold for an average of $235,000 next year, up from a predicted 950 sales for $227,000 by the end of this year.
Likewise, CMHC predicted 90 single-detached homes and 30 units of multiple-family housing will be started in 2010, up from an anticipated 80 single-detached home and 40 units this year.
The numbers represent an upward revision from the predictions for 2010 in a outlook issued three months ago, when the CMHC called for 875 sales for $222,000 and 70 starts on single family and 30 multiple-family.
CMHC market analyst Paul Fabri said the modest upswing will be in tune with a province-wide trend fueled by attractive interest rates and modest economic growth but tempered by ongoing difficulties in the forest sector.
"I think the good news is the stabilization in terms of house sales and new construction activity," said Fabri.
B.C. Northern Real Estate Board president Gary Shannon said the prediction on house sales is in line with what he's been seeing.
"We've had the strongest October for awhile, it's been a strong summer and throughout the fall sales were brisk," he said. "We're back into more of a seller's market in most areas of Prince George and we're limited on supplies of housing."
Prices are edging up "ever so slightly," he added.
"Nothing to get excited about but they are edging up a little bit and selling much quicker as long as they're priced properly," Shannon said.
Prince George Home Builders Association president Allen Creuzot agrees with CMHC's prediction on the house construction front.
"It's starting to become a lot more of a balanced market right now and slightly back to the sellers side again so I think you're just going to see some more activity happening here," said Creuzot,
"There are some new subdivisions coming on-stream that have got a lot of people very excited."
Start of the harmonized sales tax on July 1, 2010 will also be a factor in Creuzot's opinion.
"There are going to be a lot more starts at the beginning of the year so people can try to avoid all or the majority of the HST (on new home construction)," he said.
Contractors are also being kept busy with home renovations thank to the federal government's tax credit program, he added. According to the latest building permit report from city hall, 204 permits for $4.2 million worth of alterations to single-family homes had been issued year-to-date as of the end of September, compared to 210 permits for $3.6 million by the same point last year.
"That's really done wonders to keep people employed," Creuzot said.
The predicted totals are still down from the numbers reached in 2008 when 1,168 houses sold for $240,240 and 146 houses and 69 units were constructed.
As of the third quarter of 2009, 641 homes had been sold for an average $232,123 according to the B.C. Northern Read Estate Board. And according CMHC, there were starts on 73 single-family homes and 30 units of multiple family.
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Last Updated ( Wednesday, 04 November 2009 )
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