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Lack of consumer confidence slows market activity.

Throughout Northern Ontario home buyers have adopted a "wait-and-see" attitude, causing the majority of house prices to remain stable or increase marginally, says Royal LePage in its January issue of the Survey of Canadian House Prices.

"We expect home buying activity among first-time buyers to pick up in the first quarter of 1991, due primarily to lower interest rates. But, overall, the recession and low levels of consumer confidence are keeping real estate markets slow," says Tony Gilchrist, Royal LePage's vice-president and regional manager for north central Ontario. "Demand in all markets is for homes priced under $200,000.

SUDBURY

The Sudbury market is one of the few in Canada to show modest price gains in most housing categories over the past year.

A detached bungalow, for example, was listed at $115,000 in January, up $3,000 from one year previous.

Meanwhile, the price for a two-storey home increased by $9,000 to $134,000, the price for a standard townhouse increased by $9,000 to $89,000 and the price for a senior executive home increased by $5,000 to $225,000.

THUNDER BAY

Demand in Thunder Bay is keeping the prices of most starter homes ahead of last year's prices.

A typical standard two-storey home, for example, was listed at $150,000 in January, $1,000 more than three months previous and $6,500 more than in January 1991.

Prices reported in the survey tell the same story about a bungalow in the community. In 12 months its price climbed by $9,500 to $109,000.

However, the price for a senior executive home decreased five per cent over the same period to $285,000.

SAULT STE. MARIE

The uncertainty about the future of Algoma Steel softened house prices in the Sault in 1991, but they have remained stable for the past three months.

The January survey indicated that a detached bungalow was priced at $96,000, down $8,000 from one year previous. A standard two-storey home in the Sault was priced at $110,000.

NORTH BAY

The price for a senior executive home was the exception to the rule in North Bay. It decreased by $20,000 over one year to $250,000.

Most of the remaining categories of homes in the Gateway City stabilized or showed modest gains. For example, the price for a detached bungalow increased by $2,500 to $125,000, the price for a standard two-storey home increased by $2,500 to $125,000 and the price for a standard townhouse stabilized at $79,000.

TIMMINS

The market in Timmins showed weakness for all housing categories but one.

For example, the price for a detached bungalow decreased by $4,000 to $118,000 in January. The price for a standard two-storey home decreased by $11,000 to $129,000, while the price for a standard townhouse decreased by $5,000 to $77,000.

The price for a senior executive home in Timmins stabilized at $265,000.

KENORA

The housing market in Kenora showed across-the-board increases from January 1991.

For example, the price for a detached bungalow rose by $5,000 to $115,000 in January.

Meanwhile, the price for a standard two-storey home increased by $10,000 to $110,000, while the price for a senior executive home increased $10,000 to $160,000.

NATIONAL

According to the quarterly Royal LePage survey, prices in every major centre in the country softened during the three months leading up to January.

And once again, the only bright spot was the market for more affordably priced homes. Driven by first-time buyers and those trading down, demand and prices for lower-priced homes were reported to be steady in most areas.

Housing values in the Royal LePage survey are opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate specialists.
COPYRIGHT 1992 Laurentian Business Publishing, Inc.
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Copyright 1992, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Sudbury Report; real estate market
Publication:Northern Ontario Business
Article Type:Industry Overview
Date:Feb 1, 1992
Words:646
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