Real estate muddied by conflicting economies: volume, prices affected by local fears over international recession.

• Author: Stewart, Nick
• Position: TIMMINS

The positive outlook for Timmins' financial future isn't exactly reflected in its housing market, as prospective homebuyers have become increasingly skittish in the face of the global economic chill.

[ILLUSTRATION OMITTED]

Despite the strengthening local economy, total sales volume for residential properties is down 36 per cent from the same period last year. This shift marks a possible return to more traditional levels for the city, which has seen an explosion in the housing market over the last four years, according to local experts.

"I think we've sort of peaked and plateaued, and where we go from here really depends on the economy," says Scott Bragagnolo, president of the Timmins Real Estate Board and broker with Claimpost Realty Ltd.

"I don't see it getting better, and if anything, prices will stay where they are or decline in the long term. In comparison to other places, we are doing really well, but people tend not to see that and get pessimistic about how things are."

The average list price has also dropped for residential properties, sinking to $131,000, down nine per cent over the last year.

This doesn't necessarily mean that prices themselves are sinking, says Bragagnolo, adding that more buyers have simply begun bargain shopping and looking at lower price ranges. What's more, the cyclical nature of the industry means a sudden burst of consumer activity could drive prices back up to 2008 levels.

Low inventory levels are contributing to the problem, due in part to the late start to the summer, when more market activity typically arises. Also to blame is the general slowdown in new home construction, which has characterized Timmins for the last two decades as a result of a growing reliance on strictly "on demand" building.

In particular, hot-selling items such as large, well-maintained three-bedroom bungalows are in short supply. In the rare moments when they become available, such homes sell anywhere from $225,00 to $285,000, which are still cheaper than in many larger Northern Ontario centres, Bragagnolo points out.

"It's still a great time to be on the market, and if people are looking to put their houses on the market, they should do it...