Thunder Bay Housing Market update

THUNDER BAY – If you are looking for an apartment in Thunder Bay you know how tight the market in the city can be. The housing market is equally tight, according to Canada Mortgage and Housing Corporation’s (CMHC) Spring Housing Market Outlook report for Thunder Bay, Despite slowing existing MLS® home sales, MLS® prices will rise nine per cent in 2012 as listings shortages prolong seller’s market conditions.

Resale volumes are forecast to fall one per cent in 2012 more due to supply weakness than demand softening.

“Despite strong price appreciation and strengthening employment, listings shortages will continue in the resale market with only slight relief in sight,” observed Warren Philp, CMHC Northern Ontario Market Analyst. “Nevertheless, apartment condominium units will offer some new supply and will be the dominant form of higher density housing this year and next,” added Philp.

Single-detached housing starts will rise four per cent in 2012 while starts of semi-detached, row and apartment starts will not keep pace with last year’s unusually high totals. Total starts are forecast to decrease by five per cent in 2012