Real estate in northern B.C. in hot demand during COVID-19 pandemic

There are not enough houses in Smithers, B.C., for eager buyers right now, according to the regional real estate board, and the hot northern housing market shows no signs of cooling down, despite, or perhaps because of, the COVID-19 pandemic.

Sandra Hinchliffe, vice-president of the B.C. Northern Real Estate Board (BCNREB), said the local housing market came to a standstill in the spring when the virus first hit the province, but bounced back in June and July. Hinchliffe said the summer spike in sales can be linked to people looking to move out of other, perhaps more densely populated areas of B.C., while the virus remains a threat.

"I think the word is out," said Hinchliffe Monday on Daybreak North. "Wouldn't you want to get out to a place like northern B.C. where there is so much room for everyone?"

Data provided by Alexandra Goseltine, executive director of the BCNREB, shows sales in the region were up more than 17 per cent in July 2020, compared to the same month in 2019. June 2020 also had a five per cent bump compared to the previous year.

The region includes the communities of 100 Mile House, Williams Lake, Prince George, Fort St. John, Smithers, Terrace, Kitimat, Prince Rupert, Fort Nelson, Mackenzie and Quesnel.

According to Hinchliffe, the northeast of the province, which includes Fort St. John, is not experiencing the same boom, which, she said, is due to the area's comparatively poorer economy.

And, she said, she is doing her best to help buyers find what they are looking for outside of Fort St. John, where "there is more demand than there are houses and there are people coming in from other areas."

Hinchliffe said the majority of house hunters, in her experience, are looking to purchase a primary residence, not recreational properties.

Lowered interest rates could also play a factor in the sales spike.

Mortgage brokers report that banks have tightened their requirements for who can get a loan, but for those eligible, five-year fixed mortgages can be two per cent or lower.