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Local home prices jump by 21.6 per cent

The Sudbury Real Estate Board has joined Ontario Realtors in calling on governments to do more to maintain the vanishing dream of home ownership in Ontario, with the average home sale price of $500K last month a 21.6 per cent jump from May 2021
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With local home sale prices spiking and interest rates on the rise, the dream of owning a home in Greater Sudbury is being pushed even further out of reach.

This, Sudbury Real Estate Board chair Tanya Vandenberg said, is why the local organization has joined Ontario Realtors in advocating for various points outlined in their 2022 Platform for a Home for Everyone.

“The cost of inaction is having home prices continue to be out of reach for most homeowners and people wanting to own a home,” she told Sudbury.com. “We don’t see the demand slowing down – It might slow down a little bit with increasing interest rates, but it still remains pretty affordable to get a mortgage, so we have to increase the supply to meet that demand.”

Since January of this year, the average price of homes sold in Greater Sudbury has hovered around the $500,000 mark, which is 21.6 per cent greater than it was a year ago.

“One of the major factors is that the price of new construction has really skyrocketed, so that is definitely affecting the average home sale price,” Vandenberg said. 

“If we look at new construction as a factor, in 2021, a single-detached home average was about $646,000 to build, and our average price this year is $900,000 for a detached home.”

Semi-detached houses tend to be a more affordable option, and Vandenberg said that between these and the repurposing of existing institutional and commercial buildings, more affordable options might be created, which she described as the city’s greatest current need. 

Ward 4 Coun. Geoff McCausland proposed a change to the city’s Official Plan earlier this year, which would open up institutional properties to housing and prompt a review of municipally owned properties for potential housing projects. 

“Depending on where they go with that sort of redevelopment of these commercial buildings for residential, it could be something really conducive for senior citizens, maybe creating housing units for young people trying to enter the market as well,” Vandenberg said, pointing out these groups as in among the greatest need for affordable housing.

In their platform, Ontario Realtors propose:

  • The Land Transfer Tax be indexed to inflation and doubled to $8,000.
  • That the province uses the Planning Act to allow for the building of duplexes, triplexes and fourplexes on lots traditionally zoned for single-family housing.
  • Underused commercial properties are converted to homes.
  • A Ontario Housing Delivery Fund should be created, which the Ontario Housing Affordability Task Force recommended. It would have senior levels of government offer incentives for municipalities to increase their housing stock. 
  • That the province implement a voluntary home energy audit program to provide incentives and encourage consumers to purchase green home retrofits.
  • Real estate regulations should be introduced by the province, such as a code of ethics.
  • The creation of a registry that would require home purchasers to identify themselves to land title authorities to reduce instances of money laundering through real estate.
  • The Ontario Land Tribunal should be rejigged to prioritize cases that would increase housing supply quickly and hire more adjudicators to tackle the growing backlog.

Despite its challenges, Vandenberg clarified that Greater Sudbury remains an attractive market within the scope of Ontario as a whole, where the average home price is much greater. 

Between April 2021 and April 2022, the average house price in Ontario jumped 13.3 per cent to $985,354 – roughly double that of Greater Sudbury, according to the Canadian Real Estate Association

“Sudbury’s still a very attractive market for people coming from outside,” Vandenberg said. 

“Just for staying in Ontario, even our neighbours in North Bay, I think we’re on the same average home price, there’s nowhere people can move nearby that would ease the burden.”

In April 2022, the average price in Sudbury was $481,700 in Sudbury, according to the Canadian Real Estate Association, while those in North Bay were approximately $20,000 less. Last month, the average price of homes sold in Sudbury hit $499,544.

Although it’s still considered a seller’s market in Greater Sudbury, Vandenberg said that things are “starting to balance,” with more homes appearing to come onto the market so far this month, though the final numbers won’t be known until the month’s end. 

There were 445 residential listings on the market at the end of May, which was a decrease of 18.5 per cent from a year previous and the lowest number recorded in May in more than three decades. There were 341 homes sold in May, which was down 11 per cent from May 2021.

“It’ll be interesting to see what happens in June,” Vandenberg said, adding that buyers should get pre-approved by their bank in order to lock down interest rates before they spike. 

Although the Ontario Realtors’ platform applied to last week’s provincial election, Vandenberg said that it also applies to this year’s civic election, scheduled for Oct. 24, in advance of which she’d like to see candidates include the affordability of home ownership in their platforms. 

Tyler Clarke covers city hall and political affairs for Sudbury.com.


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Tyler Clarke

About the Author: Tyler Clarke

Tyler Clarke covers city hall and political affairs for Sudbury.com.
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