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By Rudy Nielsen |
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Property near Prince George |
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This month, we focus on Prince
George, which is rapidly becoming one of
the hottest markets in British Columbia.
Recent statistics released by the BC
Real Estate Association show that the
Prince George market had the third
highest percentage gain in overall sales
in 2005 (the Northern Lights
(northeastern BC) and the Fraser Valley
were first and second respectively.) We
asked out friends at
mylandcor.com
to
break down this sizzling market for us.
Their results seem to indicate a city with no
signs of slowing down. |
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When we take a look at the
residential sales trend in the Prince
George region, both urban and rural
areas show a marked increase in sales.
Since 2000, the number of residential
sales in the city of Prince George have
increased 116%. In that same time
period, the number of sales in rural
Prince George have increased by
123%.This number is simply astounding. |
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With a rise in the number of
sales, one would think we might see an increase
in the city of Prince George assessment values.
The average assessment values here have remained
rather steady over the last five years,
fluctuating only about $9000. In fact the 2005
assessments were slightly down from 2000.
However the recently released assessments for
2006 seem to suggest that this situation is
rapidly changing. The 2006 assessment jumped to
$128,976, a $17,000 increase over 2005.
The total assessed value trend
continues this upward trend. In 2000, the total
assessed value of residential property in Prince
George was $2,787,623,080. By 2005, this had
increased to over 3 billion dollars to $
3,289,008,004. In other words, there are more
properties in Prince George, being assessed at
higher levels, which demonstrate an economy in
full swing. |
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If there ever was a time to enter
the real estate market in Prince George, it
would be now. The average sale price for a
detached home in Prince George in 2005 was
$145,000, already $16,000 above assessed
value. We note that this sale price is close
to a 20% increase from the average sale
price in 2000. When you look at the condo
market in Prince George, the average sale
prince in 2005 was $117,790. When you
realize that the market for condos bottomed
out in 2002 at $75,052, you can see that the
market has rebounded drastically over the
past 3 years.
When you consider that the number of sales,
assessed values and average sale prices have
continued to increase, we believe that the
Prince George market is poised for further
growth. In fact, we have seen marked
interest in our properties in and around
Prince George over the past couple of
years. |
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We believe that this hot market is due several
factors. First, we have seen over the past five
years a rise in demand for the economies
supporting Prince George- mining, ranching and
forestry. While these industries slumped during
the 1990's, they have rebounded nicely in
the new century.
Secondly, Prince George, situated at the
intersections of Highways 16 and 97 is poised to
take advantage of the booming economies along
both highways. Prince Rupert, found at the end
of Highway 16, is about to explode due to the
new Asian trade flowing through the upgraded
container port at Prince Rupert. Meanwhile,
Highway 97 connects the northeastern section of
British Columbia with the rest of the province.
The demand for this sector’s natural resources,
such as coal and natural gas, had led to renewed
interest in cities such as Tumbler Ridge, Dawson
Creek, and Fort St. John.
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Third, it has never been easier
for international investors to access
the area. Recent upgrades to the Prince
George airport include a new Customs and
Immigration section, allowing
international flights to land here. With
more flights from the Lower Mainland,
Alberta, and international destinations,
the economy, and therefore the real
estate market is ready to take off.
We strongly recommend Prince
George as a city in which to purchase
property. The beautiful landscape of the
Nechako Valley, with world class,
year-round recreational opportunities
mere minutes away, and access to some of
the best investment opportunities seen
in decades, means that the real estate
market in Prince George is unlikely to
slow down soon. |
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Remember, don’t wait to buy land, buy land and
then wait.
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