Hot Market and Slow Housing Starts
THUNDER BAY – Thunder Bay’s hot real estate market has many homes selling well above their listing price. Often there are bidding wars that see auction style bidding that benefits a home seller. The building of new homes has continued, but is slower than perhaps the market demand is calling for.
Across Ontario, housing is not moving with as many new homes as other parts of Canada. However, the Canadian Mortgage and Housing Corporation says that will change this fall.
Ontario Regaining Momentum
Ontario housing activity will regain some momentum later this year and post modest growth into 2014, according to the Third Quarter 2013 CMHC Housing Market Outlook – Canada Edition released today. Ontario housing starts are expected to decline and reach 58,600 units before stabilizing at 59,400 unit starts in 2014. Ontario housing starts will range between 57,000 and 60,200 units in 2013.
“Housing activity will slow in 2013 but post some modest growth by 2014 thanks in large part to an improving Ontario economy, stabilizing affordability conditions and less out-migration to other provinces. Tight resale market conditions for low density housing and improving income growth will allow demand for new single detached homes to hold up better over the forecast horizon,” said Ted Tsiakopoulos, CMHC`s Ontario Regional Economist.
Ontario existing home sales have stabilized and will gradually lead the market higher into 2014. MLS(R) sales will range between 188,400 to 202,400 transactions in 2013. Ontario home prices will grow in line with inflation this year and next.
In Thunder Bay while home prices are hot, the comparison to Toronto, Calgary, Fort MacMurray and other communities still place Thunder Bay as having affordable housing prices by comparison.