THUNDER BAY – Business – Thunder Bay’s real estate market is red hot. It is a market that favours the sellers. Homes are selling for more than their listing price in many cases. Sources tell NetNewsLedger that a recent home listing in the city resulted in a bidding war that ended up $50,000 over the asking price with the buyer paying cash for the home.
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 6.4 per cent in 2013 as listings shortages continue supporting seller’s market conditions. Resale volumes are forecast to fall 5.3 per cent in 2013 more due to supply weakness than demand softening.
Hot Real Estate Market
“Employment growth and accompanying in-migration will provide the underpinnings for sustained market appreciation and another above-average year for new single-family construction,” noted Warren Philp, CMHC Market Analyst. “Another good year of higher density starts will also bolster housing starts numbers this year and next,” added Philp.
Single-detached housing starts will rise 1.3 per cent in 2013 while starts of semi-detached, row and apartment starts will slip only slightly from lofty levels achieved in 2012.
There is one area in Thunder Bay that appears to be flying under the real estate radar screen.
Sale of camps and cottages are, according to Re/Max extremely hot across Canada. However the local market is not listed on the report.
Greater stability is returning to recreational markets as demand gains traction in major Canadian centres, according to a report released today by RE/MAX. The RE/MAX Recreational Property Report 2013 found that many markets have experienced a rebound in activity— set in motion by softer values and better selection—in recent months. Starting prices are down or unchanged in 77 per cent (24/31) of markets examined in 2013, prompting renewed interest. As a result, recreational sales are projected to match and/or exceed 2012 levels by year-end in almost 70 per cent centres.
The shift can be attributed to six major factors:
1. Confidence is growing in overall economic performance.
2. Selection of recreational product is at its best level in recent years.
3. Prices have softened in many Canadian markets.
4. Paper wealth accumulated in the stock market in recent years is making its way into recreational property markets.
5. Purchasers are bypassing tighter financing criteria through HELOCs (Home Equity Line of Credit) on their principle residence.
6. Increased foreign and out-of-province investment.