The Kitimat real estate market has seen a nuanced shift in 2023 with both strengths and challenges, according to the year-end report from the BC Northern Real Estate Board (BCNREB).
While the number of property sales in Kitimat has slightly decreased from 202 properties in 2022 to 184 in 2023, the total value of these sales has increased, rising from $72.8 million to $85.7 million.
The median value of single-family homes has been a highlight, standing at $375,000 for the 115 homes sold in 2023. The sales also included 28 half-duplexes and 19 townhouses. Notably, the year-end saw an increase in available properties, with 90 listings of all types, a significant rise from 37 at the end of 2022. This increase in inventory suggests a potential shift towards a buyer’s market.
In context of the broader BC Northern region’s market trends, BCNREB reported a downturn in the overall Northern region, with property sales dropping to 4233 in 2023, down from 5071 in the previous year, and the total sales value falling from $2 billion to $1.7 billion.
The final quarter of 2023 was particularly telling, with sales declining across all three months, marking the third-lowest level since the COVID-19 pandemic’s onset. The average price in the BC Northern region dipped to approximately $408,000 in the fourth quarter, indicating a roughly 5 per cent decrease from its peak in 2020.
Across the Northern region, the housing market varied. While towns like Prince Rupert, Quesnel, 100 Mile House, and Williams Lake saw a rise in sales, others, including Kitimat, experienced a decline. The overall softening of the market has been attributed to high-interest rates impacting buyer affordability. However, there is a glimmer of hope as fixed-rate mortgage rates have started to decline, anticipating potential rate cuts by the Bank of Canada in 2024. This forecasted change is expected to bolster the market, potentially invigorating sales in the spring.