The Northwestern BC Booming Blog

March MLS Stats

2008-03-20T20:36:00.000-07:00

Time for the MLS listings update for March, 2008.

It looks like listings have gone up in Kitimat slightly, and have decreased in Terrace by a minor margin.

Doesn't look like spring will be here for a few more months, so housing activity will be slow while the northwest is in a virtual deep freeze both weather and economic wise.

Anyone going mining or gambling?

Project Canned?

2008-03-01T20:11:00.000-08:00

Rumor has it that the project on the old TLC lands that has been proposed by WestCoast Hospitality Inc. has fallen through.... Project details below, courtesy of the Terrace Standard.

THE OWNERS OF the new gaming centre in Prince Rupert say they've struck a deal with the Terrace Lumber Company to buy 20 acres of its former sawmill site. And they say they have an option to purchase the remaining 53 acres that are up for sale.

WestCoast Hospitality Inc. says it wants to build a hotel, convention centre and entertainment complex on the 20 acres.

It says additional lands would be used for small retail, restaurants, box stores and residences.

In addition to the just-opened Chances casino in Prince Rupert, WestCoast Hospitality owns the Coast Hotel in Prince Rupert and it has a majority interest in the Treasure Cove Hotel in Prince George.

"Terrace has a tremendously bright future and with the developments in Prince Rupert (container port), Kitimat (Alcan) and mining to the north, Terrace is perfectly situated to continue to be the service centre of northwestern B.C.," says WestCoast president Craig Briere.

Link to article.

The Start of the Real Estate Crash?

2008-02-27T22:16:00.000-08:00

It looks like two more condo construction projects in Vancouver are in trouble, bringing the total to three projects running into financial difficulties. The question is now, is this the start of the housing crash that has been forecast for the Lower Mainland, or is it just a small blip in the ever increasing housing market in the 'Best Place on Earth'?

Courtesy of CBC News:

Two more condominium projects in the Vancouver area have run into financial difficulties, leaving dozens of purchasers in limbo.

The Sophia in Vancouver's Mount Pleasant neighbourhood is 85 per cent complete.
(CBC)

The Chandler Development Group Inc.'s H&H Yaletown project in Vancouver, and the Garden City building in Richmond have been placed in the hands of a receiver, the CBC has learned.

Almost 250 condominiums in those developments have been presold. Until this week, purchasers had no idea the developer was in trouble.

News that the Chandler Development Group is facing financial challenges comes on the heels of another developer, the Eden Group of Companies, citing financial difficulties for a decision to halt its third development in Vancouver in less than four months.

The Sophia on E11th Avenue and Sophia Street in the city's Mount Pleasant area went into receivership on Feb. 18 and the receiver, The Bowra Group, has 21 days to submit a plan to the courts.

Bowra has also been appointed to make sure that the H&H and Garden City projects get finished, builders get paid, and owners get their condos.

H&H is a 192-unit building, while Garden City is comprised of 108 units, according to a receiver manager's report to the B.C. Supreme Court.

Both projects were scheduled to be completed by the end of June 2008.

"The company was running into cost overruns, they were running out of cash and I think the lenders wanted to complete the project,'' said Bowra Group President David Bowra.

"But they weren't convinced it could be completed without the assistance of a third party. So they decided to apply for a receiver to be appointed."

The receiver has discovered that 23 condos in the Chandler Development Group projects were allegedly sold to insiders at prices well below market value, Bowra said.

They may get to keep their condos, but will likely have to pay today's prices, he said.

It appears that the other buyers will get their condos for the price paid as there is enough money available to finish the job.

Link to article.

February MLS Listings - Terrace/Kitimat

2008-02-12T21:26:00.000-08:00

Looks like there's an increase in the amount of units being put on the market in both Terrace and Kitimat. Could this be a sign that the housing market in the northwest is on the verge of 'correcting', otherwise known as crashing? Only time will tell, but I am guessing that a lot of speculators are hanging on to their houses as they wait to see if the Alcan expansion goes through.

Economic Downturn ?

2008-01-30T15:19:00.000-08:00

Canada won't escape U.S. woes, TD chief says

TARA PERKINS

Globe and Mail Update

January 29, 2008 at 5:37 PM EST

Toronto-Dominion Bank chief executive Ed Clark says a significant slowdown is coming, and the Canadian economy will not decouple from the United States.

Speaking to a financial services conference in New York, Mr. Clark spoke positively of the domestic banking environment.

“I always say to people if you don't buy me, buy one of the Canadian banks,” he told the room of investors. “It's been a terrific story in Canada.”

But he added Canada's economy will not likely escape troubles south of the border.

“Our outlook is that Canada will not decouple itself from the United States,” he said, adding there will be an impact on the bank's business.

“We're sitting here, the guns of August, waiting for the war to begin and anticipating it,” he said. “... Over a year ago, I announced it was coming, and all I did was end up cutting expenses probably a year in advance. But I do think this time it really is coming, and we are going to have a significant slowdown.”

Courtesy the Globe and Mail

Link

Vancouver Housing News

2008-01-24T12:28:00.000-08:00

Here is an interesting article about the Vancouver housing boom

Who in their right mind would want to pay these kinds of prices.

The price of a benchmark condominium in Greater Vancouver has risen 111.5% in the past five years to a disgustingly unaffordable $377,579.

The price of a benchmark townhouse in Greater Vancouver has risen 100.8% in the past five years to a sickeningly unreachable $456,941.

The price of a benchmark single family home in Greater Vancouver has risen 95.5% in the past five years to nauseatingly excessive $730,399.

Even adjusted for inflation we are far above any historical norm.

Courtesy the 'Financial Planning and Personal Sanity Blog'.

Alcan gets Environmental Approval

2008-01-19T05:19:00.000-08:00

It looks like Alcan has received environmental approval for the planned smelter upgrade in Kitimat, BC. I can just imagine what this will do for house prices in this region, as speculators arrive in droves. Watch that $30,000 shack become a $250,000 palace with a new coat of paint, laminate floors, landscaped yard. Don't worry about the asbestos or anything. Just paint over it.

January Terrace & Kitimat MLS Listings

2008-01-15T08:27:00.000-08:00

Well, it looks like it's time to see how many units are on the market in Terrace and Kitimat for the month of January. Take note, this is just a snapshot in time. Values could go up or down by the end of the month.

Going Mining

2008-01-06T18:51:00.000-08:00

One of our contributors wrote in to ask when Terrace is going mining, as is clearly indicted on the signs posted at the new Skeena Bridge, and downtown. That's a good question, because at this point in time it is really debatable if Terrace is really going mining, such as to the signs put up by the Terrace Economic Development Authority (TEDA), would lead you to believe.

With one mining project suspended, another one on the verge of closing (Kemess), and not much else on the immediate horizon, we really need to question the value of these signs. Sure, they might bring hope to some, but that's really about it folks. I doubt they would even make good firewood.

Coming Soon.....

2008-01-02T20:37:00.000-08:00

Our monthly analysis of the MLS property listings for Terrace/Kitimat. Let's see what the housing market does over 2008. My predictions:

Increase in listings on the market in both Terrace/Kitimat in the spring/summer of 2008.

Decrease in prices, as people try to bail out of a failing, mostly speculative market. This will be especially interesting to watch if the housing market in Vancouver goes down, as some are predicting.

Come on folks, let's hear what your predictions are for the Northwest real estate market are for 2008....

Kitimat

2008-01-01T18:28:00.000-08:00

Well, it looks like Kitimat is quite the place that's really showing all the trappings of a prosperous economy. Have a look at this video on Youtube, and see you for yourself folks!

Welcome

2008-01-01T17:22:00.000-08:00

Hello Everyone,

Welcome to the Northwestern BC Booming Blog. This is where we watch the exciting economic events in places like Terrace, Kitimat, Prince Rupert, Smithers, and the big city of Stewart BC.

The Editor