marketsnapshot - mpac · 2018-02-19 · that have taken place in the market between a willing...

July 2012

WelcomeI am pleased to introduce MPAC’s first report on Ontario residential property sale price trends. This report draws upon our professional experience and expertise as one of

the largest assessment jurisdictions. We are responsible for the valuation of Ontario’s nearly five million properties with a value of more than $1.8 trillion.

At MPAC, it is our role to accurately value all properties in the province of Ontario. We are responsible for administering a uniform assessment system based on Current Value Assessment. Our assessment professionals understand the dynamics and nuances of individual real estate markets and a critical part of our analysis is the review of the actual sale prices that take place in the market every year.

As a result, the trends in this report are an accurate reflection of what has happened and is happening in the residential real estate market. The statistics provided are an indication of sales only and, as a result, do not reflect the entire marketplace in Ontario.

The sales used by MPAC as part of its valuation process have been validated. This means that we only use those sales that are determined to be the result of open, arms-length transactions that have taken place in the market between a willing seller and a willing buyer. This process excludes those sales that do not meet this criteria which include estate sales or others where factors, other than the market, have had an impact.

For additional analysis, we have turned to some local real estate experts and, as you will see, this report is good news for most Ontario property owners. An average of 340,000 residential property sales take place every year in Ontario and an average of 60,000 new residential properties are constructed. This report shows that the value of residential property in most communities has increased since 2008 and underscores the continuing strength of the real estate market.

This report is the first of a series and reflects our commitment to property assessment excellence, outstanding service, and trust. I welcome your comments and suggestions for improvement.

As we are moving closer to our delivery of the 2012 province-wide Assessment Update, we will share a comparison of property assessment increases and decreases with you later this year.

Larry Hummel, MPAC Chief Assessor

Residential Sale Prices in Ontario

MarketSnapshot

Copyright MPAC 2012

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Sale Trends

Residential Sale Price Trends in ontario (2008-2012)

July 2012

onTaRio ReSidenTial Sale PRice index

MarketSnapshot

leading up to the last province-wide assessment Update in 2008, the ontario market was experiencing price increases and in the months following, the effects of the recession began to cause a dip in the market.

By mid-2009, the market had fully recovered and since then has shown steady increases up until January 1, 2012 – the legislated valuation date for ontario’s next province-wide assessment Update.

mPac continues to analyze the market.

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WhaT iS The diffeRence BeTWeen a Sale PRice and an aSSeSSmenT?

A selling price of a property represents the price a buyer and a seller agree to in one particular transaction. Your assessment, or your property’s current value, is based on the most probable sale price based on an analysis of all sales transactions from the local real estate market.

WhaT iS The RelaTionShiP BeTWeen PRoPeRTy aSSeSSmenT and PRoPeRTy TaxeS?

All property in Ontario is assessed once every four years by MPAC. Each property is assessed based on what a willing buyer would pay a willing seller for the property

on a legislated valuation date. To help determine that value, MPAC reviews sales of comparable properties in the neighbourhood.

This fall, all property owners in Ontario will receive a Property Assessment Notice with the assessed market value of their property as of January 1, 2012. To help provide an additional level of property tax stability and predictability, the Ontario Government has introduced a phase-in program where market increases in assessed value between January 1, 2008 and January 1, 2012 will be phased in over four years (2013-2016). The full benefit of a decrease is applied immediately.

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MPAC’s Residential Sale Price Index measures average sale price trends in the province for all residential properties. MPAC’s benchmark is January 1, 2008 – the legislated valuation date for Ontario’s last province-wide Assessment Update.

For example, if a property sold for $350,000 on January 1, 2008 then, on average, the average sale price of that property on January 1, 2012 would be $409,500 – an increase of 17%.

July 2012MarketSnapshot

Municipalities use the assessments to calculate property taxes. In their annual budgets, each municipality determines the amount of money it needs to pay for police, fire and other services it delivers to its residents.

hoW aRe PRoPeRTy TaxeS calcUlaTed?

MPAC assesses and classifies all property in the municipality. In principle, a municipality will determine its annual budget requirements and divide that amount by the total assessment to come up with a tax rate.

Tax rates are established by a municipality and applied to properties to raise the money needed to pay for services. Different tax rates may apply to different propertytypes (i.e., residential, multi-residential, industrialand commercial).

If you live in an area with both a local and regional government, tax rates are set by both levels of government. For local government, the tax rate is determined based on the local assessment, whereas the regional tax rate is established based on the assessment for the entire region.

Similarly, the provincial education tax rate is based on the assessment for the entire province. These rates are then added together and applied to your assessment to arrive at your property taxes.

Will my PRoPeRTy TaxeS incReaSe By The Same PeRcenTage aS my aSSeSSmenT?

No. An increase in your home’s assessment does not necessarily mean an increase in the property taxes you pay.

If the assessed value of your home has increased more than the average for your local community, region and province, you may pay proportionately more in property taxes. If your home has increased in value less than the average, then you may pay proportionately less in property taxes.

For example, if all residential property in your municipality and/or region has increased by 16% since 2008, and the assessed value of your home has increased in comparison by 20%, then you may pay 4% more than the average property tax that residential property owners are paying in your municipality and/or region. With the phase-in program, the assessment-related property tax increase, in this example, would be phased in at 1% a year over four years. Assessment decreases are implemented immediately.

Who is MPAC?

MPAC is a not-for-profit, public-sector corporation who proudly serves ontario property taxpayers. it is our role to accurately value all properties in the province of ontario. We are responsible for administering a uniform assessment system based on current Value assessment. Visit www.mpac.ca for more information.

Did you know?

did you know that mPac values property as of a legislated valuation date? for assessment purposes, the value of a property reflects market conditions as of that day. Every property’s assessment will be updated to a January 1, 2012 valuation date later this year. The last province-wide assessment Update took place in 2008 and valued properties on a January 1, 2008 valuation date.

For more information about MPAC and property assessment, visit www.mpac.ca.

Contact Information: Michael Jacoby

Director, Communications 905 837-4209

July 2012CommunitySnapshot

ciTy of oTTaWa

Ottawa continued to see a steady increase in residential real estate prices that has been the hallmark of the city’s real estate market, according to Ansel Clarke, President of the Ottawa Real Estate Board. Since 1980, average sale prices have increased by an average of about 6% a year, according to Clarke.

Ottawa very rarely sees a decline in average prices, according to Clarke. He said the city enjoys a stable economy that is more diverse than many people believe, with government accounting for 20% of employment in Ottawa, technology firms another 20%, and various service and ancillary businesses the remainder.

As well, Ottawa’s greenbelt, increased congestion and commuting times to suburban communities including Orleans, and the amenities that come with being the nation’s capital, have all combined to keep sale prices increasing in the city.

“Boutique” neighbourhoods, such as the Glebe, have experienced above average increases in prices. As well, Westboro, which is immediately west of Parliament Hill, and other areas close to downtown Ottawa have experienced above average increases in price. Infill properties, on which people can build custom homes, are also in demand.

oTTaWa ReSidenTial Sale PRice index MPAC Ottawa Office

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ToRonToRising sale prices of residential property in Toronto are driven by a number of factors including immigration, foreign investment, low interest rates, the attractiveness of an urban lifestyle, and shortages of both developable land and homes for sale.

The condominiUm maRkeT

Sale prices of high-rise condominiums have kept pace with, and in some cases exceeded, increases in prices for low-rise residential property types in some months since the recovery from the recession.

However, in 2012 the annual rate of price growth for condominium apartments has moderated closer to the rate of inflation, according to Jason Mercer, Senior Manager of Market Analysis for the Toronto Real Estate Board (TREB). One reason, according to Mercer, is the uptick in listings resulting from a substantial number of condominium completions, between 15,000 and 20,000 units a year over the last two years.

In downtown Toronto, young people and empty nesters are drawn by an urban lifestyle with easy access to transit that will allow them to live with only one car or without a car.

The loW-RiSe ReSidenTial maRkeT

Shortages of developable land and resale homes are having an impact on prices. Many people who took advantage of low interest rates and a good economy to buy low-rise homes in the early 2000s, are not yet ready to sell and are renovating instead, according to Mercer. This, coupled with high up-front costs in

buying and selling a home in Toronto including municipal land transfer taxes, and an uncertain economy, has led to fewer listings for low-rise residential.

TREB has noted that new listings rebounded for low-rise and high-rise homes in the second quarter of 2012. This trend is expected to result in a better supplied market and a slower pace of annual price growth in the second half of 2012 and through 2013.

Some trends based on MPAC data are as follows:

Bungalows on large lots are being purchased for land value alone and have increased by up to 50% since 2008 to $1 million or more in some neighbourhoods, with buyers willing to pay a premium to build the home of their dreams.

While prices are up across the city, some areas have seen more significant increases than others.

In Scarborough, where increases have traditionally lagged other areas of the city, increases in sale prices have kept pace with the rest of the city. Prices have increased most significantly in northwest and southwest Scarborough, as people who cannot afford central city prices buy just to the east.

Detached, semi-detached, and town homes north of Bloor Street through the central part of the city, close to amenities and the subway, have experienced the highest rate of growth in sale prices for non-condominium residential.

Sale price increases of all types of property west of the downtown core including Etobicoke are consistent with those of the city as a whole, with a number of hot spots such as Mimico seeing significant increases since 2008.

ciTy of ToRonTo ReSidenTial Sale PRice index MPAC Toronto Office

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gReaTeR ToRonTo aRea

Population growth and an increasing shortage of land for development resulted in increases in residential sales prices in all regions of the Greater Toronto Area (GTA). Durham has traditionally seen average sale price increases less than those experienced in other parts of the GTA, according to Cail Maclean, Executive Officer of the Durham Region Association of REALTORS®. Average residential sale prices have increased by more than 12% in Durham since 2008.

Durham Region has heavily relied on the auto industry in the past, which was severely impacted during the recession of 2008. However, Durham region proved to be more resilient than expected with the value of homes and average sales prices increasing consistently since 2008.

One explanation for this, Maclean said, is that the Region’s economy has diversified with the Ontario Institute of Technology and other businesses and technology companies that have located in the area. In addition many savvy home buyers are comparing amenities as well as prices these days. When you look at what your dollar gets you in other areas of the GTA, Durham Region stands out as being a very affordable option with excellent amenities.

Traffic congestion and long commuting times to Toronto have been a major factor affecting growth and increases in residential sales prices in Durham in the past. Highway 401 continues to be the only major highway serving the region. However, construction of Highway 407 East, which is expected to begin this year, will have a positive impact on traffic congestion and prices, according to Maclean.

With population growth from immigration, diversified local economies, and a growing shortage of vacant land for new development, municipalities in York Region, on

Toronto’s northern border, have experienced average increases matching, and in some cases, exceeding those in Toronto.

Regional mUniciPaliTy of dURham ReSidenTial Sale PRice index MPAC Oshawa Office

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Average price increases in communities in Halton and Peel Regions have kept pace with those seen in Toronto and York Region.

Mississauga has a number of major employers and a diversified economy. This, coupled with low interest rates, population growth and a shortage of both developable land and resale properties, has ensured steady growth in residential prices. Multiple offers have now become common in Mississauga, according to Fawzi Mattar, President of the Mississauga Real Estate Board.

The real estate market is particularly strong along the waterfront, in areas such as Port Credit. In addition to being desirable places to live in their own right, Mattar said some speculation is also taking place as a result of redevelopment plans being announced for the area. As well, Mattar said he is seeing significant increases in prices in older neighbourhoods close to the Mississauga city centre. Mississauga has also seen significant high-rise condominium development near the city centre.

Regional mUniciPaliTieS of halTon and Peel ReSidenTial Sale PRice index MPAC Mississauga Office

Regional mUniciPaliTy of yoRk ReSidenTial Sale PRice index MPAC Richmond Hill Office

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Oakville remains one of the most desirable communities in the Greater Toronto Area. The Oakville market can be deceptive because the sale of multimillion-dollar homes in southeast Oakville between Lake Ontario and the QEW can skew the average price higher, according to Jeff Mahannah, past President of the Oakville-Milton & District Real Estate Board.

Even bungalows in the area are being purchased for prices ranging from $1 to $2 million and being torn down for the value of their 100-by-150-foot lots.

While not as high, prices in other areas of Oakville have increased significantly since 2007. Homes built in the 1980s on 50-foot lots in Sherwood Heights on the border of Oakville and Mississauga have increased in price by as much as 60% according to Mahannah.

Prices have also been affected by a shortage of single-family detached homes on the market. While Oakville has an eight-year supply of developable land, Mahannah said town homes have accounted for a significant amount of new construction.

This, combined with the desirability of the town itself, has resulted in entry level homes being sold for between $500,000 to $600,000 in Oakville, compared to $350,000 to $400,000 in 2007.

Significant development is now taking place in Milton, which has been designated by the province as a growth area, with significant population growth expected over the next decade.





hamilTon & BURlingTon

Hamilton has experienced steady, measured growth in residential real estate prices as its economy continues to diversify and employment increases, according to Cameron Nolan, President of the REALTORS® Association of Hamilton-Burlington.

Hamilton’s economy is less dependent on the steel industry, according to Nolan. McMaster University, significant growth in medical research, teaching hospitals delivering regional health care, as well as the opening of some new manufacturing plants have all contributed to increasing employment with a positive impact on housing prices.

As well, home buyers who have been priced out of the market in Toronto and the Greater Toronto Area (GTA) are buying in Hamilton, with the commute to Toronto made easier with the extension of GO train service to the city.

Hamilton’s downtown core is being revitalized and is becoming an arts and entertainment centre, with new restaurants, galleries, and other amenities. As well, prices for waterfront property are increasing with the redevelopment of the Hamilton Yacht Club.

While Burlington was once viewed as a bedroom community, Nolan said it has developed an economy of its own which has helped support price increases there. As well, many people working in the GTA are moving to Burlington, helping to support prices.

Burlington offers a low tax rate, waterfront parks, and other amenities including proximity to both Toronto and Hamilton that make it a desirable place to live.

ciTy of hamilTon ReSidenTial Sale PRice index MPAC Hamilton Office

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ST. caThaRineS & niagaRa

St. Catharines and Niagara have continued to experience the slow, steady growth in prices that have historically characterized the market, according to Brad Johnstone, President of the Niagara Association of Realtors.

Johnstone said that in his experience over the past 15 years, St. Catharines and other communities in the Niagara Region do not experience the spikes or the drops in sale prices that can characterize other Ontario markets.

Even during the 2008 recession, which saw significant layoffs at General Motors and the closing of the John Deere manufacturing plant, prices dropped only by approximately 5%, according to Johnstone. They have since resumed their upward climb.

Johnstone said the economy of the region has been bolstered by Brock University and Niagara College, both of which have growing enrolments. As well, a new hospital in St. Catharines, which will serve the Niagara Region as

well as provide some services to residents of Hamilton, is expected to open later this year and drive employment.

A new $50 million arena and a new Brock University theatre complex have also been approved for St. Catharines.

Johnstone said the area is also seeing some resurgence in manufacturing, with major investments by General Motors in its transmission plant, and an expansion of Lakeside Steel, which bode well for the future of the real estate market in St. Catharines and Region.

However, he said he expects prices to continue to grow at their historic rate, not least because of the availability of land for development in municipalities across the region. He said that St. Catharines has an eight-year supply of developable land and other Niagara municipalities have a 20-year supply, which will meet demand into the future. For example, a new 1,500-lot subdivision is now being brought on-stream by the City of Thorold, a short drive from St. Catharines.

Regional mUniciPaliTy of niagaRa ReSidenTial Sale PRice index MPAC St. Catharines Office

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kiTcheneR-WaTeRloo

Kitchener-Waterloo has experienced steady growth in residential sale prices, with no significant spikes or downturns, as the economy of the area has transitioned from manufacturing to high technology over the past 15 years, according to Sara Hill, President of the Kitchener-Waterloo Real Estate Board.

In addition to Research In Motion, technology companies including Google, OpenText, Communitech, Desire2Learn and dozens of smaller technology start-ups are located in the two municipalities. The municipalities are also home to two universities and Manulife, Economical, and Sun Life insurance companies.

Because of municipal development policies focused on preserving farmland, Kitchener-Waterloo is being built out with no major new subdivisions planned. As a result, Hill said land prices in the two municipalities have never been higher, with prices in some areas such as Westmount Road increasing to as much as $4,500 a front foot.

As well, Hill said higher-end homes have never sold as well as they have in the last four years.

Development policies have combined with a desire for an urban lifestyle by both young people working for technology companies and empty nesters are stimulating new development in downtown Kitchener.

Former manufacturing plants are being converted into condominiums and several new condominiums are being built. Development and prices in downtown Kitchener are expected to increase with construction of a $1 billion Light Rail Transit (LRT) project that has been approved by regional council.

Areas experiencing the most significant price increases include Deer Ridge Estates, a decade-old subdivision near Highway 401 that is being found as desirable by commuters to the Greater Toronto Area. Higher than average price increases are also being seen in the north end of Waterloo, Kiwanis Park bordering the Grand River, and in established neighbourhoods with large lots.

Regional mUniciPaliTy of WaTeRloo, The coUnTieS of dUffeRin and WellingTon, and The ciTy of gUelPh ReSidenTial Sale PRice index MPAC Kitchener Office

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coUnTieS of elgin, middleSex and oxfoRd ReSidenTial Sale PRice index MPAC London Office

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london

Despite a rare dip during the 2008 recession and the loss of two major industrial employers, average real estate prices in London have recovered and are continuing to increase at their traditional rate of about 2% to 3% per year, according to Barb Whitney, President of the London and St. Thomas Real Estate Board.

London has recovered some of the manufacturing employment lost with the closure of the Ford Motor assembly plant in St. Thomas and the Caterpillar locomotive plant, according to Whitney. As well, the city has a diversified economy with employers including Western, Fanshawe College, major teaching hospitals, Great West Life and 3M, which has supported real estate prices.

Although there has been an increase in condominium construction downtown, low-rise residential, in particular detached single-family homes, account for most of the residential real estate market in London.

Whitney said the city is experiencing higher than average increases in prices in sought-after areas such as Southdale Road and Wonderland Road, in the south and northwest sections of the city.

Prices are increasing at average rates near the University of Western Ontario campus, where most student housing is located. As well, Whitney said sales of new homes are brisk in subdivisions and builders are continuing to build.





WindSoR eSSex ReSidenTial Sale PRice index MPAC Tecumseh Office

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WindSoR

Windsor began to see some signs of a recovery in the real estate market after a decline that began eight years ago, according to Mark Imeson, President of the Windsor-Essex County Real Estate Board.

Because of its dependency on the automotive industry, the 2008 recession and its impact on the automotive sector had a particularly adverse impact on residential home prices.

While prices have yet to increase, Imeson said he is seeing more optimism about the city’s future economic prospects in the first quarter of 2012. Imeson said negotiations are underway between the city and various companies on seven different projects that could bring new, non-automotive-related employment to the city.

As well, the University of Windsor and St. Clair College continue to play key roles in the redevelopment of downtown Windsor and the diversification of the economy.

As a result, Imeson said he is beginning to see multiple offers on some properties for the first time in a number of years. However, Imeson said Windsor may be the only large city in Canada where a home can be purchased for under $75,000.

The city and county are using the price of homes to its advantage with the 100-Mile Peninsula, a campaign to attract retirees from other parts of Ontario and Canada to the Windsor/Essex area. Over the last several years, the city and county have been successful in attracting more than 885 new residents to Windsor and Essex County totalling $228 million in real estate.

While overall sale prices in the area are continuing to improve, some areas of the city and county have experienced some increases. Homes in Tecumseh and St. Clair Beach, two suburban communities on Windsor’s eastern border, also continue to sell well.





Simcoe coUnTy ReSidenTial Sale PRice index MPAC Barrie Office

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BaRRie

While Barrie has slipped somewhat from its position, prior to the 2008 recession, as the fastest-growing city in Canada, it continues to experience growth and steady increases in residential sale prices, according to Walter Doret, President of the Barrie and District Association of Realtors.

Barrie has traditionally been a bedroom community for the Greater Toronto Area (GTA). Even with high gasoline prices, buyers from the GTA continue to be a mainstay of the Barrie real estate market, willing to commute in exchange for lower home prices and a better quality of life, according to Doret. As well, commuters now have access to GO train service to Toronto five days a week, and weekend runs are scheduled to commence very soon, reinforcing its desirability as a bedroom community.

Employment opportunities in Barrie itself are expected to increase with announcements by TDCanada Trust, Royal Bank and IBM that have, or plan to locate, data processing operations in the city.

One of the major factors influencing average home prices in Barrie is an increasing shortage of developable land over the past five years. Aside from some small areas and infill, Doret said there is virtually no additional developable land in the city. In addition to underpinning average sale prices, the shortage has led to the construction of townhouses and condominiums in the city which is in line with the provincial mandate “Places to Grow.” To address the situation, the municipality completed annexations of 2,923 hectares (5,700 acres) in 2010 from neighbouring Innisfil for development purposes, which could have a moderating impact on future price increases, according to Doret.





fRonTenac coUnTy, lennox and addingTon coUnTy ReSidenTial Sale PRice index MPAC Kingston Office

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kingSTon & eaSTeRn onTaRio

Unlike many other Ontario communities, the Kingston real estate market was largely unaffected by the recession, according to Al Sytsma, President of the Kingston and Area Real Estate Association.

Average sale prices in Kingston continued to rise by 3% to 5% a year in the past five years in a real estate market that Sytsma says is unique in Ontario. In addition to stable, public sector employment from Queen’s University, the Royal Military College, and the Canadian Forces base, Kingston is also seen as an attractive destination for retirees from both Toronto and Ottawa.

Prices have steadily increased in the established family neighbourhoods west of Gardiners Road and in the downtown core where parents and speculators continue

to buy student housing, either for their own children or in the belief that property values for student housing will continue to increase. Sales of new homes in the north part of the city also continue to be strong. Sytsma said sales to first time home buyers have been particularly strong over the past year, with multiple offers and sales 1% to 2% over asking in some cases, compared to previous years when sales were generally 2% to 3% below the asking price.

While the market has been strong in most categories, prices for waterfront property in Kingston remained flat over the past four years, with sales affected by a decline in American buyers as a result of economic conditions in the United States, according to Sytsma.





TeRRiToRial diSTRicTS of kenoRa, Rainy RiVeR and ThUndeR Bay ReSidenTial Sale PRice index MPAC Thunder Bay Office

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ThUndeR Bay

Like other northern Ontario municipalities, Thunder Bay is seeing significant increases in average real estate prices. Home prices began rising in 2002 after being stagnant for two decades, according to Diane Erickson, President of the Thunder Bay Real Estate Board. Aside from a dip in the 2008 recession, prices have continued their upward trend.

While the increase is significant in percentage terms, Thunder Bay continues to be one of the most affordable cities in Ontario because prices had been so low.

Erickson attributes the increase to Thunder Bay’s success in diversifying its economy from its heavy dependence on pulp and paper and grain shipments

from the port. While both the port and paper mill continue to operate, the Thunder Bay Regional Health Sciences Centre, Lakehead University, and the university’s medical school have been instrumental in transforming the Thunder Bay economy. This has combined with a lifestyle and location that is attracting former residents back to the community to retire and a shortage of available houses for sale, to keep prices increasing. Like most other Ontario communities, waterfront property in Thunder Bay continues to show the strongest growth.





noRTheRn onTaRio (eaST)

High resource prices that have created a mining boom and the diversification of local economies have combined to drive average home prices higher in municipalities across northeastern Ontario.

While the Sudbury housing market saw a dip following the 2008 recession and a year-long strike at Vale, it has now resumed the upward momentum that began in the early 2000s, according to Carl Young, President Elect of the Sudbury Real Estate Board.

Young said multiple offers on some homes have been seen in Sudbury since 2007. The situation is in marked contrast to the 1990s, when Young said the market was flat for the decade.

Diversification of the local economy and major investments by mining companies are creating employment in Sudbury and underpinning housing prices.

Sudbury now has two colleges, a university, and the Northern Ontario School of Medicine. Construction will soon be underway on the school of architecture in the downtown core. All of these schools have had an increased demand in enrollment and have had to build more dormitories on their campuses to house students.

Nickel mining company, Vale, has begun a $2 billion undertaking in their clean air project to upgrade their smelting operation in Sudbury. Xstrata Nickel will follow suit in the next one to two years also upgrading their facilities. Sudbury has been chosen as the location for a new chromite plant to be built 30 minutes north of the city and the plant will process the ore from the new Ring of Fire development in the far north and the construction project will bring 400 jobs to the city and many more, once operational. Sudbury is also home to other mining companies such as DeBeers Diamond processing and FNX Mining.

As a result of a growing local economy and employment opportunities, Sudbury is experiencing a shortage of new listings, helping to increase the price of homes and encourage construction of new condominiums. The availability of new condominiums and homes, and apartment vacancy rates, are expected to decline further, which has also triggered construction of apartment complexes in recent years.

Timmins, the centre of Ontario’s gold mining industry, is also seeing significant increases in real estate prices,

particularly over the last four years, as the price of gold has skyrocketed, according to Ellen Pankiw, President Elect of the Timmins Real Estate Board.

Pankiw said the town, with a population of 45,000, has a limited housing supply with virtually no rental unit vacancies and few homes listed for sale. As a result, demand is driving up housing prices in the municipality.

In contrast to the 1990s, when homes could stay on the market for three to four months, Pankiw said multiple offers are common and offers are being made on homes on the same day that they are listed.

After 25 years of being in a stable real estate market, Sault Ste. Marie has been a growth market over the past three years, according to Linda Brauner, President, Sault Ste. Marie Real Estate Board.

For example, Brauner said an 1,100-square foot bungalow in Sault Ste. Marie sold for an average of $152,616 in 2011, an increase of 11% from $137,455 in 2010. Prices ranged from $35,000 to $450,000 in Sault Ste. Marie last year.

Average prices for homes are still below those of southern Ontario communities. As well, land prices are still considerably lower than in other communities in Ontario, giving homebuyers the option to have acreage or waterfront property which is increasingly out of price range for average homebuyers in other parts of Ontario.

However, because prices for real estate in the north were so low in the 1990s and early 2000s, the increase in resale prices is significant in percentage terms.

North Bay is experiencing similar growth, according to Darrel Falconi, President of the North Bay Real Estate Board and local developer.

The community of 54,000 has a diversified employment base with companies serving the mining and forestry industries and is home to numerous multinational companies working abroad.

Known as a transportation hub, North Bay has both a university and college, as well as a new state-of-the-art regional health centre and is currently in the process of developing its newest industrial business park at the North Bay Jack Garland Airport, one of only four airports in the province with a 10,000-foot runway.

Falconi said the population of the city and areas is increasing with strong employment prospects and a


Regional mUniciPaliTy of SUdBURy and TeRRiToRial diSTRicTS of SUdBURy and maniToUlin ReSidenTial Sale PRice index MPAC Sudbury Office

TeRRiToRial diSTRicTS of cochRane and TimiSkaming ReSidenTial Sale PRice index MPAC Timmins Office

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Pric

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140

130

120

110

100

90

80

140

130

120

110

100

90

80

Jan 2007

Jan 2007

Jan 2008

Jan 2008

Jan 2009

Jan 2009

Cop

yrig

ht M

PAC

201

2C

opyr

ight

MPA

C 2

012

Jan 2010

Jan 2010

Jan 2011

Jan 2011

Jan 2012

Jan 2012

Jan 2013

Jan 2013

January 1, 2008 100

January 1, 2008 100

January 1, 2012 119

January 1, 2012 129

growing influx of North Bay natives who left for employment in the south and are returning to take advantage of the quality of life in their retirement.

As a result, prices are increasing and are having an impact on affordability for first-time homebuyers. There are increasingly fewer homes to be found in the up-to $200,000 range, which is most attractive to first-time buyers.

In addition to resource industries, the economy of Sudbury, like that of North Bay and Sault Ste. Marie, has

diversified. In addition to offices of the Ontario Ministry of Transportation, Sudbury has two community colleges, one of which is French, and a university that includes a medical school and will soon include a school of architecture.

While average prices have increased across the community, Young said the south end of the city, where a number of new subdivisions are located, are increasing more rapidly in value. He added that prices of waterfront property within and outside the city’s boundaries have also increased more rapidly than the average.





TeRRiToRial diSTRicT of algoma ReSidenTial Sale PRice index MPAC Sault Ste. Marie Office

TeRRiToRial diSTRicTS of niPiSSing and PaRRy SoUnd ReSidenTial Sale PRice index MPAC North Bay and Parry Sound Offices

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tial S

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iden

tial S

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Pric

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140

130

120

110

100

90

80

140

130

120

110

100

90

80

Jan 2007

Jan 2007

Jan 2008

Jan 2008

Jan 2009

Jan 2009

Cop

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PAC

201

2C

opyr

ight

MPA

C 2

012

Jan 2010

Jan 2010

Jan 2011

Jan 2011

Jan 2012

Jan 2012

Jan 2013

Jan 2013

January 1, 2008 100

January 1, 2008 100

January 1, 2012 125

January 1, 2012 115

marketsnapshot - mpac · 2018-02-19 · that have taken place in the market between a willing...

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