Prince George once known for its low-cost housing but now the cost is high

Bidding wars and same-day sales have erupted in a B.C. city that once sold advertisements on Vancouver's SkyTrain promising affordable homeownership, representing a scorching Canadian housing market.

Prince George, located more than 700 kilometers north of the Lower Mainland's frenetic purchasing, has long had steady home prices, bolstered by its position as an educational and service center for other northern B.C. communities more susceptible to high economic cycles.

In 2014, the city initiated a marketing campaign called "Move up Prince George," which included advertisements on transit systems in Vancouver, Edmonton, and Toronto, promising professionals the opportunity to own a home and yard with convenient access to both urban and outdoor experiences.

As the pandemic restrictions continue, the message appears to be resonating with out-of-towners looking for more land, leaving locals concerned that their own dreams of homeownership might be put out of reach.

Increased demand has resulted in single-family homes in the city increasing in value from an average of $383,643 in March 2020 to a record $450,901 in March 2021, most of it in the last few months, thanks to low-interest rates and low inventory. This represents a 17.5% rise.

Overall prices have nearly doubled in the last year, according to the Northern B.C. Real Estate Board, which predicts record transactions in 2021. Blind bidding, which involves multiple potential buyers submitting offers and the seller selecting the best one, is becoming more common, and homeowners are receiving multiple offers before their homes are even officially mentioned.

This is in line with a national trend in which the average home price in Canada has increased by more than 30% and sales have increased by more than 70%.