http://www.bclocalnews.com/bc_north/thenorthernview/news/119271759.html#
Summary:
On April 5, 2011, the BC Northern Real Estate Board released their first quarter results. After a close examination, it seems that the property sales have decreased compared to the first three months of 2010. By the end of March, they managed to sell 25 properties worth $4.3 million. But in 2011, they sold 35 properties for $6.3 million dollars. Not only did they sell less property than they did in 2010, the average selling price dropped from $207 893, to $171 909. As a result, they currently have 240 properties ready for sale, 9 more than last year.
Connection:
In the first quarter of 2011, real estate companies in Prince Rupert managed to sell 25 properties for a worth of $4.3 million, compared to last year, their sales dropped by 10 properties. A decrease in sales would mean that there would be a less inflow of cash from the operating activities because the operating activities section typically includes the cash flows that result directly from the sale of goods and services to customers. In addition to that, the average selling price of the homes this year in Prince Rupert has dropped by about twenty- thousand dollars, which means there would be decrease in their net income, consequently, they earned less money.
Reflection:
The real estate companies need to invest more money on advertising. They need to show the world the pros of living in Prince Rupert. This was how Canada attracted so many people back in the 1800s and 1900s. Personally, I would hate moving to Prince Rupert right now because I know nothing about it. All I know is that Prince Rupert is somewhere north of Vancouver, and not a lot of people live there. A factor that may have contributed to more people buying properties last year is because the economy improved since 2009. People wanted to buy houses before prices go up again. Another factor that could have contributed to the decrease in sales is because of the unstable weather we endured in the first two months. I remember where one day it was about nine degrees, and the next day, it was snowing and below zero.
I agree with what you said about how a factor that may have contributed to more people buying properties is because the economy has improved. A lot of people now think that it is a good time to buy homes and houses are being sold really quickly now too. Also, their number of homes on the market has also risen from last year. Since they have more properties remaining on the market this year compared to last year, they will have a decrease in cash flow from their operating activities. They had 231 properties left on the market last year but this year, they had 240 properties left on the market.
ReplyDeleteI noticed a small misinterpretation that you made in your summary paragraph. You stated that 35 properties valued at $6.3 million were sold in 2011; and 25 properties worth $4.1 million sold in 2010. In reality, it was the other way around. As Barbina said, the real estate companies of Prince Rupert will have a reduced cash flow because their products (the real estate) aren't being sold. There is only so much you can do to get people to move to a place like Prince Rupert. You would be hard pressed to find anyone willing to abandon their exciting city lives to move to boring Prince Rupert. I find it interesting that you can purchase a house for less than $200,000 in Prince Rupert today. With that amount in Vancouver, you can't even buy the garage of a house.
ReplyDeleteIn your summary, you did not include the numbers of homes sold in Terrace and Smithers. I also noticed that the statistics that show property sales in early 2011 and the first three months of 2010 were mistakenly switched round. However, I agree with you on your opinions in connection. The decreasing price and property sales would result in a decrease in cash. In other words, there would be less inflow of cash from the operating activities. Moreover, I don't think the drop in property sales is mainly due to lack of advertising. In my opinions, economic recession might be the main factor that affects the sales. As the whole economic system was hit severely, people are less interested in buying properties. They would rather save the money for food and utilities. In addition to that , the decrease in demand for house simultaneously drags down the price.
ReplyDelete