The average price for a single-family home in northern B.C. is now expected to reach $246,000 by the close of 2013, predicts the B.C. Real Estate Association. That`s more than a $12,000 price jump from the same time last year. But it`s only the beginning.
The association is also anticipating another $9,000 climb in 2014.
Those predictions speak to why investors across the country are looking to northern communities and their growing mining and other natural resource industries as the next big thing in the Canadian market.
Those pull factors apply to workers but also investors as they scramble to buy existing properties in those communities, not only in B.C., but Ontario and other provinces. New construction is also an option, albeit more costly. Still prices growth is something investors will face even in a market where rates are on the rise, suggests the B.C. association.
But the potential returns are there, says one investor based in Prince Rupert.
"Increases in demand are going to make (acquisition) costs steeper," says Jack Minnis."But rental demand is just as strong and the good-paying jobs mean the rates are going up as well."
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