Economic Activity for January 2008 - Prince George, BC

The Prince George economy performed very well in 2007, keeping business confidence strong.

Despite mill announcements of shutdowns throughout the region, numerous strategic

development projects ongoing into 2008 will ensure that the city continues to diversify.

New investments in Northern B.C. the past week have been good news for the region and signs

that transition to new markets is taking place. Horizon Air announced it will begin non-stop

daily direct service between Prince George and Seattle May 1st, offering low cost fares to many

connecting destinations throughout the U.S. as well as Northern B.C.'s first transborder air

service. Growing passenger transportation options are an important driver of economic growth

making this an important step forward for Prince George and the market capture area of about

250,000 people. Also, Pioneer Family Timber Partnership and Pinnacle Pellet Inc. announced

the formation of a partnership which has acquired the shares of Tall Oil Canada. With the fibre

resource, Pinnacle Pellet Inc. plans to expand Williams Lake pellet production facility and

construct a new wood pellet production facility adjacent to Dunkley Lumber Ltd. Production

from the expanded and new pellet facilities is scheduled to commence during 2008.

Economic Activity Statistics

2007 was a strong year for employment in Prince George, with a rate of employment of 69.4%

for the year, compared with 67.6% for 2006. The unemployment rate was 5.1% in December,

slightly higher than the previous month and the same month in 2006. Annual unemployment,

however, was significantly lower than 2006 (5.1% compared to 6.3%). Unemployment averaged

5.17% for the last three months of the year, compared to 5.33 % over the same period in 2006.

At 70% in December, the employment rate was 2.4 percent higher than in 2006, with 2,900 more

employed persons than at the same time last year. Both full and part-time employment numbers

increased in December, over the previous month.

1,824 properties, valued at $373.7 million, exchanged hands in Prince George through MLS in

2007, compared to 1,991 properties worth $322.1 million in 2006. The average resale price for a

single family residential home was 21.7% higher in 2007 than in 2006 ($240,245 compared to

$197,444). New home prices also continue to be strong relative to 2006; the average cost of a

new home was $372,820 in November 2007, a 9% decrease from the previous month, but still

24% higher than in November 2006. The outlook for real estate in the city continues to be

positive.

2007 housing starts total 328 (288 single detached and 40 multiples), with 3 starts in December.

Starts were up 2.5% over 2006, and reached the highest levels in over a decade. YTD

completions for the first eleven months of the year totaled 208, with 33 completions in

November. There were 345 housing units under construction in November, which is a dramatic

increase of 49% over the same month in 2006. Housing demand in the city is likely to continue

to be strong in the coming year.

Building permits issued for the month of December totaled $1,236,287, bringing the 2007 total

to $153,923,866. The annual total is a 62% increase over 2006 and the highest in decades. Retail

building accounts for the majority of permits issued, at 37.6%, and Commercial and Institutional

permits issued follow at 33 and 25%, respectively.

The City of Prince George approved 31 new business license applications in December, which is

an increase over the same month in 2006. The relative strength of business activity in 2007

indicates the continuing confidence of entrepreneurs and consumers.

In 2007 the PGAA surpassed their best ever year with 407,300 passengers traveling through

YXS, a growth of 3.27% and the first time volumes have exceeded 400,000.

From: Initiatives Prince George 250-564-0282

www.initiativespg.com