Sault Ste. Marie most affordable city in Ontario to buy a home

CREA Downgrades Sales Forecast Chief economist Pedro Antunes discusses the CREA downgrading its home sales forecast for this year.

Three northern Ontario cities lead the way in the province when it comes to home affordability, a recent survey found.

The Zoocasa report said a comparison of 28 major cities in the province found that Sault Ste. Marie offered the best bargain, with home prices averaging $295,400 as of August of this year.

North Bay came in second at $402,000 followed by Greater Sudbury at $450,900. The remaining cities are in southern Ontario, ranging from $499,000 in Bancroft & Area to $579,000 in Grey Bruce-Owen Sound.

“As long as buyers are flexible and willing to look well outside of the GTA, there are plenty of affordable cities in Ontario with homes for sale below $600,000,” the Zoocasa report said.

“The top four most affordable cities are unchanged from a few months ago when we last conducted this report, but Simcoe & District has now grabbed the fifth spot which formerly belonged to Kingston & Area, now sixth.”

The report said rising interest rates are offsetting a dip in prices that has taken place since May.

“In North Bay, the second most affordable city, the benchmark price decreased from $409,300 in May to $402,000. Despite this, the average monthly mortgage payment increased from $1,893 to $1,915,” the report said.

“Sudbury, the third most affordable city, followed this trend, as well. The benchmark price in May in Sudbury was $451,000 and the average monthly mortgage payment was $2,086, while in August the benchmark price dipped slightly to $450,900 and the average monthly mortgage payment increased to $2,148.”

More recently, prices have begun to moderate. Home sales in Sudbury dropped by 15 per cent in September 2023 compared to the same time last year.

The Canadian Real Estate Association said for the first nine months of 2023, home sales were down 23.3 per cent compared to 2022. The average sale price in September was $449,553.

North Bay saw a surge of home sales in September, up by 27.7 per cent compared to a year earlier. The average home price in the city last month rose to $451,651.

More recent statistics for Sault Ste. Marie are not yet available.