By Gwen Merchant
Affordability and low interest rates are driving the real estate market in Timmins in 2002, but the new housing market remains relatively stagnant, says a Northern Ontario market analyst with Human Resources Development Canada.
“Everybody’s slowed down quite a bit,” says Warren Philp. “The economy, out-migration issues and the resources we are dealing with in mining and forestry means cutting costs. The biggest (issue) is labour. Fewer employees and downsizing has an effect on the construction market.”
He says new construction is always a move up, but Timmins does not have the job growth that would lead to a boom in new housing starts.
However, the resale market has been “pretty good,” with sales up 2.2 per cent over last year’s figures, Philp says. He attributes much of this resale climate to low interest rates and affordable home prices. Of the 358 sales last year, the average price of a home was $84,210. This year, of the 366 sales, the average price of a home has been $83,722.
The peak period for housing construction in Timmins was from 1997 to 1999, according to Philp. In 2001 the market “softened” quite a bit.
“There was one housing start (in Timmins) at the end of April last year,” Philp says.
Claude Brunet, general manager for Timmins Building Supplies.com, says although the new-housing market continues to be slow, there are signs that the market has improved over last year’s numbers.
“(In just one day this spring) city hall handed out 14 residential building permits,” Brunet says. “Lately it’s getting better.”
Last year 17 new homes were built, with an average of six homes built each month, Brunet says. The figures to date indicate housing starts will continue at last year’s levels, if not slightly improved, he notes.
A trend towards renovating existing homes, as opposed to purchasing new homes, seems to be dominating the scene, Brunet says. The commercial construction market has seen little movement over the past few months.
Though there are some proposals for commercial developments in the city, nothing is concrete, he adds.
