THUNDER BAY - Housing prices in Thunder Bay continue to rise, but officials with the Thunder Bay Real Estate Board say the city has settled into a balanced market.
“For the buyers, is still pretty much a balancing out market,” said Diane Erickson, president of the Thunder Bay Real Estate Board. “We are not in a seller’s marker and we are not totally in a buyer’s market. We are more balanced than we were probably in the last five years.”
According to the Real Estate Board, housing prices in the city of Thunder Bay and rural areas have increased by approximately five per cent.
In the period between January and March in 2016, the average cost of a single family detached or semi-detached home within the city of Thunder Bay was $232,000, and in 2017, the average price rose to $242,000.
In the rural areas of the Thunder Bay District in the period between January and March the average price in 2016 was $284,000 while in 2017 the average price rose to $296,000. The average prices do not include cottages or mobile homes.
“When we look at it, certain price ranges are having more of an increase than others,” Erickson said. “If you look at the market, anywhere from $150,000 to $250,000 is the drawing card right now. The higher end homes and the lower end homes are probably not seeing the increase as the middle of the road, where the average buyer would be looking.”
Erickson added the amount of time to sell a home has increased as well, particularly in the higher and lower end of the market.
And while she cannot say if this trend will continue, based on past prices, it seems likely the market will remain balanced for the time being.
“Statistically, it you look from 2010 to 2015 our prices were rising much faster and a lot quicker than they are now,” she said. “The market has balanced out. So we could be in a balanced market for another few years. It just depends on what happens in Thunder Bay. Supply and demand has a lot to do with the prices.”
For young people looking to enter the housing market, Erickson said the rise in the average price of a home shouldn’t necessarily be a deterrent, because based on the trends, the numbers could continue to rise.
“We haven’t seen a decrease in numerous years,” she said. “So if you are waiting, you could be paying more for the house next year or two years down the road.”
