Bids for houses are going through the roof

“You could blink, and the market can increase by another 10 per cent in a few months,” local broker Kelsey Belluz suggests.

Thunder Bay is one of the minority of Canadian cities that are considered sellers’ markets because there are more buyers than available homes, an imbalance that can push selling prices way past the original asking price.

“Thunder Bay is definitely different from the rest of the province and a good chunk of the country, actually,” Belluz said in a recent interview. “We are one of the only cities that are increasing quite exponentially year over year, and we’re one of the only ones seeing the sellers’ market where there are multiple offers on many different properties.”

A report compiled by RE/MAX using data from the Canadian Real Estate Association shows the average selling price of a home in the city from Jan. 1 to July 3 of this year was almost $385,000, or 10 per cent higher than the same period a year ago.

It’s projected that by the end of the year, the average price in Thunder Bay will have climbed to about $419,000.

Despite the trend, local prices remain much lower than virtually any mid-size to large-size community in Ontario.

Nonetheless, many local buyers working with a budget are having to modify their expectations about the kind of house their money will buy, or about how long it will take to find a suitable property.

“There’s truthfully no rhyme or reason right now to our real estate market,” Belluz said. “Sometimes, what’s happening is people have lost out on five or ten houses, so they’re going well over market value. If a house is priced properly or below market value, we’re seeing cases like one the other day where a house sold for $150,000 over the asking price.”

On average, she said, if a house is priced between $300,000 and $500,000, it will sell anywhere between $30,000 and $110,000 over the listing price.

Belluz said this situation will likely continue through 2026 and into 2027.

“A lot of people who are waiting for the market to slow down are going to be sadly mistaken, because I don’t foresee it decreasing in the near future.”

She believes the relatively low cost of houses in the city is attracting buyers from the Greater Toronto Area, putting further upward pressure on prices.

“Although local people might think it’s crazy what these houses are going for, it is still one of the most affordable places to live in Canada…We are noticing a lot of people from the GTA coming in because of what they’re selling their properties for in comparison to what they can get here. It’s putting them in a really good financial position. Unfortunately, the people who live here are seeing it’s a lot more difficult to complete against people like that when it comes to buying.”

Belluz said the buyers from the south are often professional families or young couples, noting that she’s sold five houses this year to individuals who relocated to Thunder Bay from Toronto to achieve their dream of home ownership

Spencer Smith, president of the Thunder Bay Real Estate Board, is also noticing the trend, saying the city is “a hot place to move to” for people looking for something more affordable.

“I deal with a lot of people from southern Ontario coming this way,” he said Monday, adding that they include both retirees and people wanting to relocate to Thunder Bay while continuing their careers.

“A lot of people working from home, working with computer jobs, stuff like that, and they can do it remotely. This is one of those cities where it’s a great place to either retire or work. It’s got a lot going for it.”

Official population figures continue to show the city’s population is growing very slowly, but Smith believes the published statistics are not keeping up to what he described as an influx of people moving here.

He believes developers and the City of Thunder Bay are striving to increase the housing stock, which would reduce the upward pressure on prices.

“The developers are doing a great job. There’s a lot of buildings and housing going up. The city’s opened up a lot of their lots that people weren’t aware of. So I think there’s alot of movement in the right direction. I just hope we keep the momentum up and keep encouraging developers to get more housing built.”

Smith is advising buyers to avoid letting frustration take them off track in the midst of the current market conditions.

“You have to work with a good realtor, and don’t get caught under the water. Make sure you know your budget, and just be very, very patient,” he said.

Belluz added that even properties that have been on the market for a long period are selling now because of the lack of supply.

She said she recently had a client who received 17 offers.

“We pick a specific date. We say we’re going to allow showings for approximately a week, then we’re going to review offers on a certain day to give people time to get in the property,” Belluz explained.

“One thing we’re noticing is that if we don’t do that, sellers are seeing less money for their home. But buyers are also not getting the chance to get in if we just said ‘The house is for sale and we’re going to be looking at offers right away.’  So when we do have these multiple-offer situations…our job as a listing agent is to try to generate as much demand for the property while getting the buyers a chance to actually get in the door.” – tbnewswatch.com

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…She believes the relatively low cost of houses in the city is attracting buyers from the Greater Toronto Area, putting further upward pressure on prices….

Average house price of $419,000 is relatively low?   Seriously?   THAT is insane.

People need a place to live just like they need water, air,  food, electricity and heat.  Why is housing, which is a necessity, so high?   Imagine having to bid on a meal, water  or electricity against others.  People would not stand for it.  Yet housing, people just have to suck it up and accept it.   Why?  Money of course.

It always boils down to money. Money is the root of all evil applies double to housing. When it comes to real-estate, its ALL about money. Everyone makes out like bandits except for the purchaser.

What incentive is there for anyone to lower the price of housing in Thunder Bay or anywhere for that matter?  The higher the price, the more money banks make, developers make, real-estate agents make and municipalities make.  Higher property values means higher property taxes.

Nobody is cheering for lower priced housing.

If house prices decline, then many existing home owners would find that their property values have also gone down.  That will create a financial crisis just like 2008.  Do you really believe that anyone will let that happen?

No, there is no way house prices will ever go down again.  Only if local industry shuts down and enough people lose their jobs.  Then, you will see house prices crash.

One reason for high property values that is not really mentioned is the investor. People or corporations that purchase property in order to rent it out.

Property is now considered an investment.  Money in a savings account gets you zero interest.  Stock markets are iffy.  Real-estate is a sure thing right now.,

People are buying houses and renting them to the poor slobs who can’t afford to buy them.  There are people who own several houses.  That is greed in its true form.

It should be illegal for anyone to own more than one house.   Those people should be shamed.

It should also be illegal for someone to own a house who does not live in that community. You own a house, you have to live in that house.

I hope there is a special place in hell for those people who hoard houses, thus keeping young families from being able to own one.