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By Veronica Beltran

third quarter sales

Northern B.C. sees record home sales in third quarter

Oct 23, 2020 | 3:31 PM

PRINCE GEORGE–Northern B.C. residential sales reached near all-time records in the third quarter of the year, however, there are growing concerns about market sustainability if the pandemic persists.

According to the BC Northern Real Estate Board (BCNREB), the third quarter of 2020 saw the second-highest sales on record in the region since data was collected in 1980. Sales through the board’s multiple listing service increased 32 per cent in the third quarter, compared to the same period last year, 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.”–Report BCNREB

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The BCNREB says that the total sales volume this year is only up marginally from one year ago, and that key northern markets have seen modest or negative performance. In the first nine months of 2020, 3,079 residential properties were sold worth $1.2 billion; 2019 saw a total of 3,741 sales in the same period worth $1.1 billion.

“The competition is getting tough in several regions including Prince George, Fort St. John, Smithers, Terrace, Kitimat and Prince Rupert,” says 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. He adds that the effects of the COVID-19 pandemic may not yet be realized and that the last three months of the year will be telling.

“Commercial and residential landlords are a vital part of our economic fabric, and tough decisions derived from tough times may deliver a crippling blow to an entire market segment unless we can find a way to beat COVID-19.”–Freddy Marks

Mark suggests that if the pandemic continues but support falters the province could potentially see an insolvency crisis in both residential and commercial markets–potentially driving prices down.