Home prices, sales drop across northern Ontario in August

Sault Ste. Marie and Sudbury's real estate boards said most of the initiatives are a step in the right direction, but more work is needed to increase housing supply. (Christian D'Avino/CTV News)

The booming housing market cooled mightily last month across Canada, with some northern Ontario markets reporting steep declines.

Figures released by the Canadian Real Estate Association on Thursday showed actual home sales declined by 24.7 per cent, compared to the same period last year.

That's the sixth straight month sales have declined, after dipping by 29.4 per cent in July.

Closer to home, the biggest decline was in the North Bay area, where a total of 105 homes sold in August, down 22.2 per cent compared to 2021.

"On a year-to-date basis, home sales totaled 886 units over the first eight months of the year," said the report from the Canadian Real Estate Association (CREA).

"This was a substantial decrease of 21.9 per cent from the same period in 2021."

The average price of homes sold in North Bay in August 2022 was $429,843, a gain of 23.5 per cent from August 2021.

However, that's down significantly compared to the overall average selling price for 2022 of $478,528.

Home sales also dipped last month in the Sault (down 15.2 per cent), Sudbury (down 11.1 per cent) and just slightly in Timmins (1.9 per cent).

Home prices seemed to have peaked in some markets and have declined in recent months. The home price index in Sudbury peaked at $366,300 in March, sliding to $327,300 last month.

North Bay prices peaked in April at $355,400, but dipped to $290,300 last month. Prices reached $312,600 in May of this year in the Sault, declining to $294,400 in August.

“August saw national sales hold steady month-to-month for the first time since February which, along with a stabilization of demand/supply conditions in many markets, could be an early sign that this year’s sharp adjustment in housing markets across Canada may have mostly run its course,” Jill Oudil, chair of CREA.

“That said, some buyers may choose to remain on the sidelines until they see clearer signs of borrowing costs and prices also stabilizing."