House sales in North Bay remained strong despite a “historic” lack of supply.Initially, the shock of lockdowns and economic uncertainty did cause a nationwide lull between February and March 2020, with sales and listings plunging 14.3% and 12.5%, respectively.
However, the market recovered to normal seasonal levels by June 2021, with sales soaring 15.2% year over year, and 63% from May 2020—much faster than the industry had anticipated.
Let’s Understand the Residential Property types available in the North Bay Real Estate Market
Detached home: A detached home is your standard single-family home. It is a residential building that stands alone and is separately titled or legally a single unit.
Semi-detached home: A semi-detached home is similar to a detached home, except it shares a wall with another home. This pair of homes must make up an independent building and each should be separately titled or legally two separate units. There can only be two homes in a semi-detached building.
Townhouses: A townhouse is the middle between a detached/semi-detached home and a condo apartment. Like detached and semi-detached homes, they are often single-family units that have their own land and may be attached to other units. However, like condo apartments, they typically have to pay co-ownership fees for maintenance and may share some common features with their neighbors.
Condo apartment: This category includes all apartments and condominiums. These are complexes of residential units with common areas such as hallways, parking lots, stairwells, etc. They can be low-rise, mid-rise, or high-rise buildings. Unlike townhouses, there are no parts of the lot (the land of the building) where access is reserved for only one owner or occupant. There can be privately owned units and spaces inside the building.
Plexes are multi-story buildings with two to four individual units, usually one on each floor.Each unit is usually individually accessible via an external entrance with higher floors connected by staircases.
Property Classes
Freeholds: A freehold is any property where the owner owns both the house and the land it is built on. Common freehold property types include: detached, semi-detached, some townhouses, and farmland.
Condominiums: A condominium or condo is any property where the owner owns the home (or unit) but shares ownership of the land and other improvements with a condominium corporation. Common condominium property types include condo apartments and some townhouses.
North Bay Real Estate Housing Market Overview
JUNE 2021
Latest observations witnessed in North Bay Real Estate Market
- Small towns like North Bay are now grappling with a rapid depletion of inventory leading to bidding wars and homes selling for considerably higher than they were listed for.
- Due to overwhelming demand and the practice of pricing properties artificially low to attract more potential buyers is sparking a bidding war. The latter is a tactic frequently used in larger urban markets, and had not been typically seen in small towns prior to the pandemic.
- The level of buying competition in the market sits at a scorching 80.5%, indicating steep sellers’ conditions, with more than 80% of Canada’s markets considered “unbalanced” in terms of supply and demand.
- Conditions across the country came to a head in March of this year, when CREA reported the highest level of home sales ever, up 76.2% from the pit of the lockdown, with the average price across all home types (including one- and two-storey single-family homes, semi-detached homes, townhouses, and condos in North Bay) up 31.6% year over year to an average of $716,828.
- Single-family homes experienced the largest price increase annually, with the benchmark up 25% to $795,700, with similar increases for ground related housing with greater square footage due to the social distancing norms because of the Covid -19 Pandemic
- However, the condo sector bore the brunt of buyers’ fears early on in the pandemic, as people living within close proximity was considered a health risk; the price benchmark grew just 8% to $498,000 in 2021
North Bay housing market to favour sellers in 2021, prices expected to rise 4-6%
The North Bay housing market is expected to sit in strong seller’s market territory in 2021 due to a lack of housing inventory prompted by an influx of buyers from the south. Inventory challenges have been a common trend across many Ontario housing markets, putting upward pressure on prices in 2020. With housing supply expected to be a continuing challenge next year, the for North Bay residential real estate in 2021 is an increase in average price of 4 to 6% across all property types, to $305,550.North Bay currently has 1.2 months of inventory. Days on market in 2021 are difficult to predict, as the market is currently being driven by pandemic-related activity.
Who’s driving the North Bay housing market?
The pandemic has had a huge impact on North Bay’s housing market. Move-over buyers from Southern Ontario have been migrating north, seeking more space and affordability in the wake of COVID-19. These buyers have been adding a great deal of competition to the market, which is putting upward pressure on housing supply and prices.
North Bay’s affordability has historically been great relative to its southern counterparts, however due to an influx of buyers from the south, North Bay prices have risen while supply has fallen. In light of this, local homebuyers will have to adjust their expectations in order to compete and win against out-of-town buyers.
North Bay’s condominium market is being driven by retirees and downsizers, with the greatest demand for two-bedroom units or larger. However, the region saw very few condo sales in 2020, indicating that buyers in this market want more space.
North Bay’s luxury market had a strong year, with activity driven predominantly by move-over buyers from urban areas, and North Bay waterfront properties in high demand.
Will the Prices of the Real Estate drop or not depends on various factors. As the housing inventory is witnessing a shortage of supply, the prices may rise for some time and gradually become stable with the slowing demand.
Contact Us to buy Property in North Bay
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Phone Number : 416 721 2345
Mail : property@goho.ca
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