BCNREB President, Shawna Kinsley
PRINCE GEORGE – The BC Northern Real Estate Board (BCNREB) reports 1786 properties sold through the Multiple Listing Service (MLS) in the first six months of 2020, down from the 2298 sales reported in the first half of 2019.
The value of these properties was $538.6 million compared with $716.5 million in 2019. At the end of June, there were 3489 properties of all types available for purchase through the MLS of BCNREB, down from 4073 at the same time last year.
BCNREB President Shawna Kinsley comments, “The first half of 2020 saw a significant decline in housing demand in the region, with sales in April reaching a low not seen since January 1988. Despite the region’s struggling forestry, and mining and oil sectors, the decline in the second quarter was primarily due to the state of emergency declared by the province that implemented physical-distancing measures.”
“This halted real estate activity across the province, which is highly reliant on in-person interactions. Moreover, significant job losses were reported in the services sector in the region, and large projects such as LNG and BC Hydro paused work that was deemed non-essential.”
As a result, total MLS unit sales in the region covered by the BC Northern Real Estate Board fell by 30 per cent in the second quarter year-over-year. Despite the pullback in demand, prices increased by 2 per cent year-over-year due to an 18 per cent year-over-year decline in active listings as potential sellers put off listing their properties.
At the end of the second quarter, the MLS average price was $329,364. Looking ahead, the BC Real Estate Association (BCREA) expect MLS sales in the region to continue to be weak for the rest of the year due to the slowdown in economic activity brought on by the global pandemic.
“BCREA is forecasting that total MLS unit sales will fall by almost 18 per cent in 2020. Meanwhile, as the BC economy begins to gradually reopen and demand starts to pick up, resale supply will be slow to respond and the pace of new housing is expected to slow as well with housing starts forecast to fall almost 19 per cent in central regions like Prince George. As such, BCREA forecast MLS average prices to rise by 2.3 per cent in 2020,” said Kinsley.
