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2014-05-22 at 08:43

On the rise

tbnewswatch.com
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By Leith Dunick, tbnewswatch.com

House prices are expected to jump by 6.5 per cent in 2014 in Thunder Bay, according to projections provided by Canada Mortgage and Housing Corporation.

Market analyst Warren Philp said Thursday the growth should continue into next year, when a 4.9 per cent increase in resale market prices is expected to occur.

“Stable employment, and continued net in-migration supports above-average price gains and another steady year for new single-family construction," Philp said in a release.

"Higher density starts will move lower in keeping with historical averages but still bolster total housing starts numbers in 2014 and 2015," added Philp.

Single-family housing starts are expected to be above average, with an estimate 255 this year and 290 in 2015. Multiple-unit starts, which were higher than average last year, are expected to fall to below 2013’s 131, but will still be higher than the 20-year average.


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Comments

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Arch Stanton says:
When you read stories like this, you can be SURE the next price crash is just around the corner....
5/22/2014 10:35:17 AM
tiredofit says:
Always the optimist aren't you.
5/22/2014 11:25:53 AM
Tbay Import says:
Funny to think that if the next recession arrives in a typical cyclic fashion, then we are really only 1-3 years away from it (since recessions do seem to happen at most every ten years; often every five years).

We haven't even "recovered" from the "great recession" and we will be entering another one relatively soon (if history teaches us anything). Just wait till we don't need oil for energy anymore; wow, that will be an economic shock!
5/22/2014 1:01:15 PM
sliceofsara says:
I hope you are right!
5/22/2014 1:24:39 PM
nvjgu says:
like to know who is buying\building all these homes. Econo. is stagnent
5/22/2014 10:48:14 AM
Shane Caker says:
Obviously someone is buying them. You've been listening to the "sky is falling" group that spends their lives posting on here, for far too long.
5/22/2014 12:40:07 PM
DougMyers says:
Gotta love people that comment out of ignorance.
5/22/2014 12:46:57 PM
Tbay Import says:
Here is what I have seen: many retirees have moved from USA and Southern Ontario, loaded with cash from sales of property in those markets. They have enough money to purchase property outright up here and often do it at a greater offer price than what a local person would be willing to fork out. Once that offer price becomes the norm, then the market shifts upwards.
I don't think Millenials and Gen Xers are the drivers in this market (i.e. the people who will be working for another 15-40 years); I think it is Boomers finally ACTUALLY retiring and moving to quiet little Thunder Bay away from the big cities.
Other than that: public servents (prov, fed and munic) and utility workers making scads of money :D
5/22/2014 12:51:45 PM
Eastender says:
There is also an exchange of money from older relatives passing, and baby boomers inheriting hundreds of thousands of dollars, if not millions. That is also driving the housing market upwards.
5/22/2014 6:18:56 PM
mrforreal says:
There are people in "the know" in Thunder Bay and outside of Thunder Bay- they are buying properties and land here. Vacancy rates are already at super low %'s, landlords know this and love it and are trying to get as much as they can. Smart people know that real estate is tangible and you can control many things about it (not all things)but many and you can cash-flow it also, this can't be said with other "paper investments" Avg price of a home in VAN is 1.3M, Toronto just passed 1M, GTA is 585K, TBAY is about 227k, there is value here compared to the rest of Canada ... and people are buying for the future who know what's coming economically. (when the economy is in the pits as people say like NOW.. now is the time to buy" when all mines are firing and the economy picks up in TBAY.. that's when one would sell.
5/22/2014 12:40:59 PM
enos012 says:
GREED is the only factoe why the prices continues to rise as well as society's believe that things must continue to rise to be productive.
5/22/2014 12:57:55 PM
glass half full says:
If I had one dollar in my left hand and ten dollars in my right hand and then I said you could take either one.

Which would you pick???

If you say you would take the hand with one dollar, you are a liar.

Not greed just investments and making money...


More power to the people who are making money.

Cheers.
5/23/2014 11:17:38 AM
CM punk says:
As previous comments stated, someone is buying up these homes.
And yes, highly unlikely its the Gen Xers or the Millenium babies.
All they can find are 10/hr jobs and the bank will not give them 400k to buy a home.
5/22/2014 2:34:01 PM
bttnk says:
You realize that that demographic in many cases is over 30 years old? Everyone I know in this city that is between 30 and 35 owns at least one home. None work $10/hr jobs.
5/23/2014 8:37:04 AM
bttnk says:
Not surprising. Thunder Bay is still the 2nd most affordable city in Canada to own a home. Prices are going to continue to rise.
5/22/2014 3:22:15 PM
progress now says:
Its supply and demand in real estate.

Prices may rise but a correction is not that far off I would think. That is of course unless people find out about our beaches and abundant sunshine.
5/22/2014 11:03:24 PM
smartguy83 says:
Link? I'd like to read it. The east coast can be very affordable.
5/23/2014 9:16:13 AM
ThePriceisWRONGcarey says:
I suggest everyone quit whining about house prices in this city and go look elsewhere. Its very affordable here in comparison.
5/22/2014 3:46:10 PM
localboy says:
A house will be sold for the exact price someone is willing to pay for it. Sellers don't control market value, buyers (and bidding wars) do. The low interest rates, and long term mortgages, house prices will continue to increase. Most banks are offering sub 3% mortgage rates.
5/22/2014 3:53:38 PM
Me n My Opinion says:
Rising housing prices has the spinoff effect of rejuvination as well. When the gap between purchasing a house and building new is large, people tend to buy what's already existing. As prices rise, the relative affordability of building new becomes more attractive. Replace the old with the new.
5/22/2014 4:09:44 PM
thunderbaycouncel says:
the only reason I am selling one of my rental homes near LU is because of this. this is awesome for home owners but sad for new home buyers.
5/22/2014 8:13:39 PM
johnb says:
I read that the real estate market in Canada is very high and in a bubble. Apparently Canada is one of the most expensive countries in the world to purchase a house. As far as I'm concerned it is the Realtors that are causing this not the actual market itself especially in Thunder Bay. If anything our economy has shrunk and we are dependent on government jobs. People should just stop buying houses for a year and see what happens.
5/23/2014 5:59:23 AM
Dockboy says:
How can a person working for minimum wage ever hope to buy a house? They better start offering 75 year mortagages payable from generation to generation.
5/23/2014 11:23:53 AM
homelessteen says:
This is funny,
I'm 10 yrs into my mortgage and my house has pretty much doubled in assessment value according to thunder bay market. However, mpac appraisal is at same price I paid.
Don't care if the bubble bursts the bank can have it back after that.

5/23/2014 6:21:22 PM
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