Sudbury’s homes still some of the most affordable in Canada

BY LAUREL MYERS

First-time home buyers across Canada are successfully buying homes that meet their needs, and those in Sudbury are no exception, according to a survey by Century 21 Canada brokers.

However, the survey indicates that meeting those needs may require some tweaking to buyers’ expectations, including a trade-off between a smaller home and a longer commute.

The Century 21 national house price survey of typical first-time homes includes 128 neighbourhoods within 55 cities and towns across Canada.

“What Sudburians have traditionally been used to, lots of selection and very low prices, seems to have pretty much evaporated,” said Jack Rocca, Century 21 Select broker-owner of Sudbury. “But first-time buyers can’t think of it in terms of what we had in Sudbury because I don’t think those days are going to come back.

“Compared to other cities of this size across Canada, we’re very affordable.”

Sudbury was ranked among the least expensive cities for first-time buyers based on price per square foot. In Sudbury, a typical first-time home is a 969-square-foot, one and a half-storey house on a 6,250-square-foot lot in the Minnow Lake community, with two bedrooms and two bathrooms, for $140,000 or $144 per square foot.

In comparison, among the most expensive cities for first-time buyers was Vancouver, B.C., where a 412-square-foot condo in the downtown is $281,000 or $682 per square foot.

Although first-time buyers may think that the prices are high and selection is poor, Rocca said it is an ideal time for them to latch onto their own homes.

“With the cost of rent going up, they’re going to find out that real estate really isn’t all that expensive when you put it into perspective.”

“Canada Mortgage and Housing shows we have the second hottest real estate market, only after Calgary,” Rocca said, attributing the red-hot market to the city’s booming economy.

“It’s not just the mines, the education sector is going really strong, the service sectors, the retail sectors, everything is firing on all their cylinders.”

Another housing survey recently conducted – the Rental Market Survey, released by the Canada Mortgage and Housing Corporation – shows the rental market in Greater Sudbury is also benefiting from a boom in mining activity.

Rents in existing structures were up 7.7 percent in Greater Sudbury. However, the city was ranked the lowest in the province for vacancy rates, sitting at 0.6 percent.

Because the vacancy rate is so low, 69 percent Canadian homeowners think owning a residential rental property or renting part of their home is a good investment.

“It looks like a good market for landlords right now,” said Kathleen Waters, vice president Title PLUS – a real estate insurance company.

However, she pointed out there are a number of legal aspects of owning a rental property that must be considered.
For more information on the Century national house price survey of typical first-time homes, visit www.century21.ca.