Real Estate Prices In Thunder Bay Going Up and Listings Down
By Scott A. Sumner
Thunder Bay Business
It has been an interesting year for real estate transactions in Thunder Bay according to Warren Philp of the CMHC and Mandy O’Connor Public Relations Director for the Thunder Bay Real Estate Board. “ The trend is people are coming to Thunder Bay and buying housing for
their children attending Lakehead University or Confederation College. We are finding properties near LU and Confederation College have extreme demand. For example Academy Heights has 3 active listings and there are 2 in College Park presently. People are coming from S Ontario or the District for in migration. The educational institutions are causing a demand for real estate. What is being listed is going full price and we are seeing multiple offers,” says Mandy O’Connor, Public Relations Director for the Thunder Bay Real Estate Board and a broker with Century 21 Superior . “ It is a two fold thing. The public may think our market is going to tank because of the forestry sector and because it hasn’t happen some people may be in a wait and see position. Prices are going up. Many of the people who go to Alberta to work have not sold their house and have put family members or tenants in their home so those homes haven’t come on the market.To purchase properties in Alberta is difficult so they commute or are there for 6 months or 12. “ We have seen considerable movement in the higher range prices as well. We had two sales over $ 500,000 this year which was record
breaking or not seen in a considerable time. Our water front properties are doing very well. There is a increase of 72% over the last 5 years in waterfront property which is assisting our higher end range,” smiles O’Connor. “ The 3 bedroom bungalow in Westfort, Northwood or Grandview remains the most popular home in Thunder Bay, especially with a garage. For our $129,000 average sale price it is a specific neighbourhood or in some places nothing fits that price range. It has been a great year. We always have a little fall off now in the fall but it is a very active market.”
“ It was a surprising year but I may have underestimated the segment of ages 42 to 62 years, the baby boomers. They are having an impact on the market and may look at a larger house or something different or even downsize so that causes demand in the market. The point is buyers 50 to 60 years old have less of a tendency to move. There is a good chunk of people who want to stay to put or their finances don’t allow them to move,” noted Warren Philp, CMHC.
“ It has been a reasonably active market with fewer listings down some 30 % from last year. A real crunch in the $120,000 to $225,000 range translated into higher prices. New construction at about $229,000 is a lot higher than the resale average resale at $129,000 We have
seen also seen twice the number of sales over $300,000. The retail sector is important and looking at the investments being made here the companies believe a solid market exists in NW Ontario.”
