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Home prices cool in Sudbury, Sault Ste. Marie after the pandemic boom

Property markets in two northeastern Ontario cities have cooled in recent months after two years of rising prices, according to local realtors.

at Sault Ste. According to Sue St. President Jonathan Mogg, the average price of a single-family home he has stabilized at $320,000. Marie Realty Commission.

"It's been growing at an unsustainable pace for some time, so this is really encouraging for buyers," he says Mogg of the market over the past two years. 

"It was completely exploding."

Before the pandemic, Mogg said he averaged home prices in Sault Ste. Marie was around $200,000. That's her 33% increase in two years.

Mogg said the Bank of Canada's recent interest rate hikes have helped cool demand from prospective homebuyers. 

"Some buyers have become a little more cautious in terms of affordability, which seems to be a major driver of what's cooling the buyer's market," he said.

Mogg added that there are far fewer bidding wars today than there were just a few months ago. 

A smiling man wearing a suit jacket.
Jonathan Mogg, President of Sault Ste. The city's housing market has returned to normal after two years of steady price increases, according to the Marie Real Estate Board. (Submitted by Jonathan Mogg)

What he calls a ``return to normal'' is that homes are staying on the market longer and buyers may be more picky. It means that there is 

"I'm really happy things are starting to get back to normal," Mogg said.

"And the biggest thing we're starting to see is that the market is back to normal again. This is really encouraging for both sides."

more stable homes in Greater Sudbury have also stayed on the market longer in Greater Sudbury, said David Curt, record broker for Lake City Realty in Sudbury.

"Nowadays, buyers are much more likely to look at a home several times before making a decision, make an offer, and make a conditional offer," Kurt said.

Kurt said the average price of a single-family home in Greater Sudbury in July was $443,000.

Despite significant price increases since the pandemic began, Kurt said housing in the area remains affordable compared to other parts of Ontario. rice field.

"In Ontario, the average price he's over $1 million," he said. "We're still at 50% of that, which means we're a lot cheaper than the rest."

A smiling man with a red jacket.
David Kurt , is a Registered Broker of Lake City Realty in Greater Sudbury. He says housing has been on the market longer than it was early in the pandemic. (Submitted by David Kurt)

Kurt said higher interest rates helped cool demand in the housing market, but there were also emotional factors that led to the decline in demand.

"When the market went up, they [buyers] thought, 'If I don't buy today, I'll never buy,'" he said.

Kurt said rising property prices during the pandemic have also led to more realtors in Greater Sudbury.

Before the pandemic, there were about 338 realtors in the city, but now there are about 450, he said.

"So we're going to see a lot of new agents coming in and a lot less transactions, which means a lot of these agents aren't making money to survive." said Kurt.