Aspiring homeowners in British Columbia who are trying to save a huge down payment might want to rethink their strategy, 5% down is all that is needed. In an article for Alaskan Highway News, reporter William Stodalka writes that the prices of homes for sale in BC continue to rise as supply becomes scarcer while demand increases. Fort St. John, in particular, owes the increasing property prices to the booming oil and gas industry, with surprisingly shocking results: In 2013 the average home increased in value by 10.3% according to BC Assessment. A huge, scary increase in house prices for first time buyers, but a savoury gain for investors.
"The B.C. Northern Real Estate Board recently issued its annual affordable housing index. It indicated that the average home cost over $350,000, and that the percentage of household income when compared to the median income spent on homes was about 34.6 per cent.
This year, homes continued to cost over $350,000, but the percentage of income was about 35 per cent.
Fort St. John continued to remain the most expensive city to buy a home in northern B.C. on the list of 11 cities within the region."
Such conditions can make quality homes for sale in Fort St. John, BC harder to acquire, especially for those in the median income level. All hope is not lost, though, because an experienced REALTOR® like Scott Sauer will help them buy a house before they get priced out of the market. A big part of this is working with a local mortgage specialists who, in turn can work out a payment plan that fits your budget.
Scott Sauer not only has the appropriate skills and experience to manage a home purchase but can also provide useful insights on certain local factors that may affect real estate prices. I will explain why favourable economic conditions, similar to Fort St. John’s, is actually a mixed bag when looking at affordable housing.
On one hand, a good economic outlook leads to more jobs, higher income levels, and more home construction activity—signs that a city is a good place to settle down and prosper. On the other hand, job creation leads to population growth, which in turn leads to a greater demand for homes and a consequent price increase once new construction can’t keep up with demand. At present, the Fort St John housing market is on pace to match last years price increases of 10%, with the increase set to occur in mid-2014.
Consequently, this means that certain Fort St. John homes for sale worth $350,000 today may well cost at least $400,000 in just a few months. Fortunately, interested buyers can turn to a trusted and experienced REALTOR® like Scott Sauer who can help them purchase a dream home before the price sky rockets out of reach.
(Source: Chart: The high cost of housing, Alaska Highway News, June 4, 2014)