Bargain homes in BC

The B.C. Northern Real Estate Board has a suggestion for Vancouver-area homeowners staggering under gut-busting mortgages.

Buy a detached house in Kitimat. The community at the head of Douglas Channel has the most affordable housing in the North, the board said yesterday.

A typical Kitimat family will devote only 15.4 per cent of its pre-tax income to owning a home, the board said in a housing affordability study.

From 2004 to 2007, house prices in the North have jumped 72.6 per cent to an average of about $240,000. Housing affordability in the north declined over that period as house prices grew faster than household income, the board said.

Still, home ownership in the North is a relative bargain, consuming a smaller chunk of income than anywhere else in B.C., the board said.

"The typical Vancouver household devotes almost 74 per cent of its pre-tax income to home ownership, while the typical household in northern B.C. spends just under 32 per cent of its pre-tax income on home ownership," the board said.

"By far, the largest contributor to the variance in affordability is relative house prices." The northern B.C. board's housing affordability index estimates the percentage of pre-tax median household income needed to pay for mortgage costs, municipal tax and fees, and utilities for single-family homes.

While Kitimat is the region's most-affordable market, 100 Mile House is its least affordable, with a housing affordability index of 51.8 per cent, the board said.

House prices averaged $240,000 at 100 Mile House last year, up more than 82 per cent since 2005.

Kitimat's averaged about $140,000 in 2007, little changed from 1998.

But the relatively high index for 100 Mile House also reflects low reported incomes from the 2001 federal census, while Kitimat has the region's highest reported median income.

The board's study comes in the wake of a report by RBC Financial Group that found B.C. is the least affordable place in the country to buy a house.

Home ownership for the entire province consumes 68.5 per cent of family income.

Northern B.C. comprises the Cariboo, Bulkley-Nechako, Fraser-Fort George, Skeena-Queen Charlotte, Kitimat-Stikine and Peace River regions.

(prepared by Paul Luke/Vancouver Province)


p.s. TAKE A PEEK at AVERAGE (MEDIAN) PRICES for NORTHERN BC TOWNS compared to SALMON ARM, SHUSWAP AREA......

100 Mile House
$229,000 ($215,000)

Williams Lake
$214,857 ($233,000)

Prince Rupert
$189,250 ($136,000)

Houston
$216,500 ($136,000)

Smithers & area
$206,950 ($190,000)

Burns Lake
$53,500 ($53,500)

Vanderhoof & area
$147,366 ($52,100)

Fort St. James
$128,000 ($114,500)

Fort St. John
$278,295 ($253,000)

Fort Nelson
$273,375 ($260,000

Terrace
$222,093 ($195,500)

Kitimat
$147,000 ($135,000)

Prince George*
$177,500 ($161,000)
Prince George*
$272,500 ($266,000)
Prince George*
$286,786 ($242,000)
Prince George*
$272,966 ($217,000)

Shuswap area
$373,225 ($370,000)

Salmon Arm
$399,467 ($398,575)

(Source: BC Northern Real Estate Board & Okanagan Mainline Real Estate Board)

As both the Median and Average prices are of keen interest, they do fluctuate as they are affected by the number and price of the homes sold in a particular month. Touch base with june@juneconway.com to obtain year-to-date Median and Average prices if you are seriously considering a move to another location!