Hot Housing Market Continues in Thunder Bay


THUNDER BAY – The hot housing market in Thunder Bay might be one of the best kept secrets, except for people in Thunder Bay. Canada Mortgage and Housing Corporation is predicting a 27 per cent increase in the city’s new home activity for 2010. The prediction was made in the Spring Housing Market Outlook.

“Home buying activity brought forward ahead of mortgage rate increases is strengthening both the new and existing home markets in the first half of 2010. Home sales activity will ease off in the remainder of the year, while the supply of homes, motivated by higher prices, will increase in 2011,” said Warren Philp, CMHC Northern Ontario Market Analyst.

Based on first half activity, the report estimates existing home sales will reach 1550 units with a rising supply and moderate sales tempering price listing growth.

The growth will slow to about 10.5 per cent in 2011 as affordability drops off, but builders will see an increased in demand back in the market with renewed interest in the resale market correlating to home starts.

Overall, homeownership demand will balloon with population growth, an improved job market and low mortgage rates.

“Higher mortgage carrying costs, increasing supply pressures and declining first time buyer demand will temper Ontario housing activity later this year and into 2011,” said Ted Tsiakopoulos, CMHC’s Ontario regional economist.

“This transition in housing activity should be orderly thanks to improving job markets, historically low interest rates and further gains in household incomes.”

Thunder Bay housing market is seen as a microcosm for the rest of Ontario, as a whole, as trends are likely to mimic one another.

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