Local Real Estate Market in Thunder Bay Stabilized
THUNDER BAY – The real estate market in Thunder Bay has been a sellers market for several years. Prices while they have gone up. are still, according to local experts, still affordable.
Prices across Canada show, according to the latest information from the BMO Fall Home-Buying Report, that four in ten house hunters (43 per cent) now expect to spend 21 per cent more on a new home – an increase of $83,556 – from when they first started looking.
The survey, conducted by Pollara, revealed the top contributors to house-hunters increasing their price point:
The majority (86 per cent) say housing prices have risen since they first started looking
Eight in ten (81 per cent) now have a better understanding of current prices
Over half (56 per cent) were able to save more for a down payment
Only 5 per cent of potential home-buyers have decreased their price range since they began searching for a new home.
“Housing prices in Canada have risen 18 per cent over the past four years,” said Martin Nel, Vice President of Personal Banking Products, BMO Bank of Montreal. “As prices rise, house-hunters need to ensure their savings are keeping pace, especially first time buyers who don’t have the leverage of a current house in the market.”
Thunder Bay Real Estate Market
What does this mean in Thunder Bay?
Mario Tegola of RE/MAX First Choice Realty Ltd in Thunder Bay states, “Our local market is unlike any other market. Prices have stabilized and we are still very affordable compared to larger centres such as Toronto and Ottawa”.
The local market has seen steady growth in the building of new homes.
Preference Shifts with Semi-Detached as Top Choice
The majority (55 per cent) of potential home-buyers have had to consider additional housing options or eliminate their first choice, citing reasons of cost, availability, and concerns surrounding the condo market. For those who eventually changed their preference or started considering more options, condos and detached houses were originally the most popular type of home being considered; semi-detached and townhouses are now the leading options.
“By shifting toward semis and townhomes and away from detached and condos, buyers appear to want their cake and eat it too – a backyard for the kids to play in, but also something that won’t break the budget, notably in Vancouver and Toronto,” said Sal Guatieri, Senior Economist, BMO Capital Markets.
