The average price for a home sold in Prince George will see a modest rise over the coming year, while the number of homes sold will decline slightly, according to a Canada Mortgage and Housing Corporation forecast.
By the end of this year, the average price will have worked out to $277,000 on 1,260 sales, compared from $271,581 over 1,285 sales in 2014, CMHC is predicting, working out to a two per cent growth in the average price and a 1.9 per cent decline in the number of sales.
CMHC market analyst Sarena Teakles said the moderation in sales is concurrent with a prediction for the entire province, not just Prince George, due primarily to the decline in the oil and gas industry.
"It is going to have a ripple effect across the entire province," Teakles said.
She said the decline in sales will be felt in the resale market while price growth will remain positive but at a slightly slower rate. The average sale price increased by 4.8 per cent between 2013 and 2014, from $259,228 to $271,581, and the number of sales rose by 8.7 per cent, from 1,182 to 1,285.
Over 2016, the number of sales is expected to increase once again with that number expected to rise to 1,300. The average price will also continue to climb, according to CMHC, reaching $285,000.
On the home construction front, CMHC is predicting the number of starts on single-detached homes will have risen from 133 over 2014 to 145 over 2015 and then 165 over 2016. On the multiple front, the count is expected to rise from 25 units over 2014 to 45 over 2015 but then decline to 35 over 2016.
Home construction has already seen a strong start in 2015 with starts on 16 single-family homes in January, compared to just seven for the same month last year.
"We'll have to see if the momentum continues," Teakles said.
There were also starts on four units of multiple family, compared to zero during January 2014.
CMHC is also predicting the average rent for a one-bedroom apartment will climb to $660 by this October from $647 a year earlier and then to $695 by October 2016. For two-bedroom apartments, CMHC foresees rent rising from $771 to $785 by this October and then to $800 a year later.
The vacancy rate is expected to decline slightly, to 3.0 per cent from 3.1 per cent and then to 2.7 per cent by October 2016.
