PEACE RIVER NORTH
Growing demand for agricultural land in
Peace River North has resulted in a 10
per cent increase in price
Many transactions involve sellers retiring
from farming
Boundary expansion in Fort St. John
could cause values to skyrocket
Demand for land in British Columbia’s Peace
River North has increased from previous
years, but operational farm demand is in
decline as more people are purchasing land
for hobby and horse farms. This demand,
met with a dip in supply, has resulted in an
estimated 10 per cent increase in the price
of farmland from previous years. Prices
have steadily increased since spring, but the
number of sales has dipped due to a lack of
inventory.
Fort St. John, in particular, is in the midst
of a boundary expansion plan. This could
result in as many as nine quarters (or 1,440
acres) of land becoming part of the city
for both residential and commercial uses. If
recognized as part of the city, this land will
exponentially increase in value, benefiting
many retiring farmers who have held land in
the region for many years. Buyers looking for
larger plots of land should look farther from
the city, as the price drops significantly on
properties beyond the city border.
Prospective buyers looking for land with
good soil quality and a house can pay up to
$650,000 per quarter (or 160 acres). Prices
range up to $250,000 for a quarter section
of bare land, while a quarter section of
predominantly bush ranges up to $120,000.
Average days on the market for these
properties have decreased minimally in the
past year. This has been accompanied by a
closer list-to-sale price ratio.
Buyers in this region are typically new
operations moving in. In many cases, retiring
veterans are selling their land and relocating
closer to the city. Farm prices are expected
to continue increasing in this region due to
an increase in demand and a shortage of
land.