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Officials welcome news that red hot home prices in northern Ont. are finally cooling

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The housing market in northern Ontario is showing signs of slowing down and correcting itself compared to some other places across the country.

That's according to North Bay and Area Real Estate Association president Andre Purcell who said for many, home ownership is still within reach.

"The average home price for the month of December was at about $361,000, but year-to-date $461,000,” Purcell told CTV News.

“This summer it was down substantially and in November it was, as well, so we're trending downwards.”

It's a similar situation in the Sault Ste. Marie and Sudbury areas. Sudbury Real Estate Board chair Adam Haight said the cooling period isn't necessarily a bad thing.

"I think that's beneficial for busters in this market right now,” said Haight.

“Whereas the beginning of 2022, you may have been competing with 10 or 15 other offers and have only two or three houses to choose from. While the inventory is still low, we're now seeing less competition, especially from out-of-town buyers coming from out of the market.”

Supply continues to be one of the big issues facing the markets across the region. In North Bay, home sales fell to their lowest level since 2014.

Inventory has sat below the 10-year average for the last four years. Analysts say the market is moving more into a correction period, bringing forth more stability.

"If you look at the stats and the numbers over the past October, November, December, they have gradually declined and I believe they will continue to decline and then they'll flatten out at some point," said Purcell.

"The peak market was about April, since then we've seen about a 12 per cent decrease in house sale prices so the market is cooling off," said Haight.

"That being said, if you're one of the buyers that are waiting for the market to completely fall out of the bottom, it's probably not going to happen. We're going to see things stabilize, I would say in 2023 and work towards more of a balanced position."

Their advice to homeowners is to be patient and not to jump at the first available property.

"Make sure you're working with a local Realtor that understands the market and knows the market and reach out to your banker to make sure you have all your ducks in a row," said Purcell.

"I think we're in a great spot here locally compared to some of the southern markets where things spike and drop very quickly,” said Haight.

“I would say we're in more of a wave situation, we're insulated from that. So overall in 2023 I think we're going to see a push toward more of a balanced market and by the time we hit the end of the year which is going to be the best thing for everybody.” 

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