THUNDER BAY, ON, Oct. 30 /CNW/ - The Thunder Bay housing market will
improve modestly next year, according to Canada Mortgage and Housing
Corporation (CMHC) in its latest Housing Market Outlook report for the Thunder
Bay Census Metropolitan Area (CMA) released today. Both housing starts and
home sales will be up in 2008, albeit slowly.
Highlights of this report include:
- The Thunder Bay resale home market remains a balanced market. Thunder
Bay existing home sales are forecast to rise 7.2 per cent in 2007 and
another one per cent in 2008. The surprisingly strong sales performance,
coupled with scarce supply, is the main story this year in Thunder Bay's
- Prices, which have risen 2.7 per cent in the first three quarters of
2007, are forecast to conclude the year up 3.0 per cent in 2007 and to
rise another 2.8 per cent in 2008.
- Single-detached home starts in Thunder Bay are expected to rise
14.6 per cent in 2007 to 180 units and a further 5.6 per cent in 2008 to
190 units. New housing construction activity recovered from a weak 2006
during the first half of 2007, but slowed significantly since then.
Multi-family starts should rise in 2007 and 2008 with 100 units
anticipated for the next 14 months.
"With the Thunder Bay economy in a transitional phase, employment gains
in the knowledge economy have not yet matched employment losses in
forestry-related industries over the past three years. This appears to be
preventing the housing market from moving ahead strongly," said Warren Philp,
CMHC's Northern Ontario Market Analyst. "Knowledge economy job gains and
stability in the forest products sector will be key prerequisites in continued
housing market improvement."
"Across the province, higher mortgage carrying costs and slower job
growth in higher paying employment sectors in 2008 will shift housing demand
towards the less expensive multi-family sector," said Ted Tsiakopoulos, CMHC's
Ontario regional economist. "A tight resale apartment market combined with a
backlog of apartment sales that have yet to commence construction, will
further support activity in the multi-family home sector," added Tsiakopoulos.
Canada Mortgage and Housing Corporation (CMHC) has been Canada's national
housing agency for over 60 years. CMHC is committed to helping Canadians
access a wide choice of quality, affordable homes, while making vibrant,
healthy communities and cities a reality across the country. For more
information, visit www.cmhc.ca or call 1 800 668-2642.
For further information:
For further information: Warren Philp, CMHC Northern Ontario Market
Analyst, Tel: (807) 343-2016; Beth Bailey, Communications and Marketing, CMHC,
Tel: (416) 218-3355; Ted Tsiakopoulos, CMHC Regional Economist, Ontario, (416)