Northern housing markets continue to heat up thanks to increased resource development

Northern BC continues to be the one corner of the province outpacing the rest when it comes to housing.

According to the BC Real Estate Association, the number of residential unit sales rose over 12% in November compared to the same time last year.

Deputy Chief Economist, Brendon Ogmundson believes the north will continue to be a hot market in the foreseeable future following the recent investments around LNG.

“We think that prices are probably going to rise about 10% in 2019 and then possibly again in 2020 as well because of all of the job creation, economic benefit and the migration into the area at a time when supply is pretty low.”

Unlike the rest of the province where sales are down 33% in November, the north continues to buck the trend.

Ogmundson says there are two reasons why the north is in better shape.

“Sales are actually up 12% so kind of bucking that provincial trend and prices are up 11.5% as the demand is outpacing the supply.”

Northern residents are also benefitting from another factor.

“The mortgage stress test isn’t having as much of an impact in areas of the province that aren’t really as high priced so if we look at places like Vancouver they are struggling a lot more whereas places like the north is a lot more affordable.”

Over 340 residential unit sales were recorded in Northern BC during the month of November.

The average home price in BC was $719,000 last month.