In May the credit agency DBRS published a report that said unemployment was a bigger threat to the Canadian economy than the housing market; because it’s unemployment that causes people to default on their mortgages and second mortgages. But if that’s true, Sudbury will be the exception. In this city, everything is just humming along.
The new Spring Housing Market Outlook report written by the Canadian Mortgage and Housing Corporation (CMHC)showed that those looking for a Sudbury mortgage are in luck, as the resale market is doing exceptionally well here. The new home sales are also undoubtedly about to rise, as Sudbury sees growth in new housing starts; and that amount of construction activity is also adding to new employment opportunities. These are all trends, says the CMHC, that will continue on during 2012 and 2013.
“Significant expenditures in mining infrastructure combined with a host of other construction projects will be key to increasing employment numbers that will support the housing industry on all fronts,” Warren Philp, Northern Ontario Market Analyst for CMHC stated when the report was released. “After a solid year in 2011, MLS sales are expected to increase nearly eight per cent reaching 2,700 units in 2012 and 2,800 units in 2013. Average MLS prices should climb 5.5 per cent this year and a further 2.5 per cent next year.”
And, unlike some markets that are currently experiencing a condo boom, it’s single-detached homes in Sudbury that are all the rage. The forecasted growth for this market segment in 2013 is three per cent, from 330 units this year to 370 units next. Meanwhile, the rate of starts for town homes and multi-unit buildings will drop to 240 units, after seeing 274 units go up this year.
Sudbury has been one of the many Canadian markets that has managed to escape any talk of a bubble. The May housing starts in this city were also on par with last year, showing neither a huge increase that would lead to empty inventory on the market (think Toronto and Vancouver); nor a huge decrease, which could lead to falling home prices and values – something else many are worried will happen in some of Canada’s biggest cities.
One reason that’s recently been given for the huge Sudbury boom is the number of new people coming to the city every year – a trend that’s been occurring for the last four years. But whatever the reason is, with stats like these it’s not hard to see why it’s good to live in Sudbury!
