The BC Real Estate Association is projecting northern BC will tally 39 hundred unit sales in 2023.
That’s a predicted decline of about 9% according to its fourth-quarter forecast – this follows what’s expected to be a 22% drop in home sales this year (4,300) in our region.
Chief Economist, Brendon Ogmundson told Vista Radio housing prices should only drop about 1% next year – that’s mainly due to our lack of housing supply.
“A lot of other markets across BC have had much more significant price declines because it’s not that their demand is so low but because they had more of a build-up in inventories. The north really hasn’t seen the accumulation of listings that other markets have.”
Currently, there are just 1,700 active listings in northern B.C. – well below the level needed to maintain a balanced market.
Ogmundson added major construction projects like Site C and LNG Canada have propped up our economy but are now starting to wind down.
“It basically carried the province in economic growth in 2019 and has continued to make strong contributions but they are starting to wind down. So, a lot of those projects are nearing completion and they are going to probably boost employment and growth for maybe another year or two.”
It’s anticipated the average single-detached home price in the north will be 472 grand next year – a decline of just under one percent from 2022 when it was $476,000.
The BCREA expects the provincial average price to drop roughly 5% in 2023.
Province-wide, Ogmundson expects home sales to drop 34% this year before falling another 11% in 2023.
New housing starts in Prince George are expected to drop off a cliff this year with just 370 expected – a decline of 44% when compared to the 665 new builds that were done in 2021.
Furthermore, only 290 new starts are being projected for 2023 in the northern capital, a further dip of around 22%.