From 2012 to 2014, house prices declined by less then 1% - a statistical variance so minimal, that one can define house prices as stabilizing. These values reflect a single family home in the area covered by the North Bay Real Estate Board.
3 Year Average Prices (12 month average ending June 30th)
2012 - $229,079
2013 - $235,360
2014 - $231,295
Over the years, some people have “predicted” (or forecasted) a significant decline in house prices – based on then current economic factors. Yet during my 31 years as a realtor, there has never been a decline greater then 5% in any one year.
From 1991 – 2001, the average sale price of a home remained level – with minor increases & decreases during this period. Effectively, you could buy a home in 2001 for the same price as 1991.
From 2005 – 2012, the average price of a single family home increased from $146,496 to $229,079. That equates to a 56.3 % increase in prices. Over the period from 1990 – 2014, house prices have increased each year, by just under 4%.
The problem with predicting a future value for housing, is that hindsight can make one look foolish. That is certainly the case with a January 2013 MacLean’s magazine article by Chris Sorensen, that forecast a crash in the Canadian housing market.
As was the case with this report, no crash occurred. In fact, house prices increased 6.9% across the country.
For the most part, values have generally kept a steady pace over the last 3 decades. North Bay is a conservative town, that doesn’t panic with housing ups and downs. While the economy has experienced some lay-offs, there are indicators which show factors like mining are beginning their upswing again. As well, with first time Buyers adjusting to the new CMHC rules, we expect the market to normalize in that sector.