“The third quarter of 2020 saw the second-highest sales on record in the region since data was collected in 1980, “ said Shawna Kinsley, president of the BC Northern Real Estate Board (BCNREB).
Total sales through the board’s multiple listing service increased 32 per cent in the third quarter, compared to the same period in 2019, but active listings fell by 24 per cent.
“Government support and mortgage deferral programs helped to prevent financially vulnerable households from being forced to sell. As a result, the average [home] price is up by 14 per cent year-over-year to $384,999,” the BCNREB reports.
“The competition is getting tough in several regions including Prince George, Fort St. John, Smithers, Terrace, Kitimat and Prince Rupert,” said Freddy Marks, an Agassiz-based real estate agent who specializes in northern and interior B.C. real estate.
“Great demand and small supply continue to create multiple offers on medium- to lower-priced housing,” said Marks, who heads the 3A Group with Sutton Showplace Realty.
“It is October’s unknowns that will decide the fate of so many,” Marks said.
Marks suggested that if the pandemic continues and government assistance falters, B.C. could see an insolvency crisis coming in both the residential and commercial markets, which could drive prices down.
Northern B.C.’s economy is largely insulated from the pandemic-linked recession because of massive infrastructure projects, including the construction of gas pipelines, a new liquefied natural gas (LNG) export terminal at Kitimat, and the construction of BC Hydro’s Site C dam power project near Fort St. John.
There are about 1,600 people employed now in Kitimat at the $17-billion LNG Canada project. The workforce is expected to peak at about 4,500 throughout 2022 and 2023.
Close to 600 workers are employed on the associated Coastal GasLink pipeline, which is expected to have peak employment of 2,500, with completion slated for 2023.
Site C dam employs just over 3,200 workers, but typical pre-pandemic workforce numbers for the project were around 4,000. It is slated for commissioning in 2024.
