By ADELLE LARMOUR
Timmins has a serious shortage of homes, says Richard Leroux, president of the Timmins Real Estate Board.
This three-year trend has shown an upward climb in rental and house sales, unseen in the area for about 15 years. In fact, the market is doing so well, real estate companies have less variety to offer consumers, particularly those looking for homes ranging between $120,000 and $300,000.
The abundance of mining activity, thanks to high precious and base metal prices, is a contributing factor to a vibrant housing market and booming economy in the city. The preparation for the De Beers Canada Victor Mine project is also starting to have an impact.
Mark Jensen, Timmins’ director of community development, agrees that the high price of gold is a major influence. As of May 2006, the numbers of new residential building permits are up by seven from last year at the same time. In fact, the overall value of permits in all sectors, including new buildings and additions or alterations has surpassed last year’s permit values worth more than $24 million. In May 2005, the total was shy of $10 million.
Building permit approvals are a good indicator of how well the economy is doing, Jensen says. He adds the trend in building activity has increased since about 2001, but has been especially noticeable over the last three years.
“We haven’t seen a lot of subdivision activity since the early ‘80s,” he says. Now, there are five active subdivisions with two more proposed developments that received approval at the end of June.
The spin-off effects from a healthy housing market also helps keep the economic ball rolling when furniture, appliance and household purchases, as well as renovations, and landscaping are factored in.
“That is not accounting for real estate fees, lawyers’ fees, appraisers, home inspectors, banks and the financing aspects,” says Leroux. “It is all a spin-off from a healthy market that provides jobs.”
The current housing demand seems to be three and four bedroom homes ranging from 1,200 square feet to 2,000 sq. ft. in size. Jensen says the price of construction per square foot is from $120 to more than $150, and the lots typically sell for $30,000 to $50,000.
One exception may be the newest development called Austin Estates Subdivision, where $250,000 homes are catering perhaps to a more specific buyer.
Commercial, institutional and industrial construction is also on the rise. Presently, a new Home Depot store is being erected, with the addition of a Canadian Tire store and a few other commercial clusters on site. School boards are investing in additional classrooms for their schools and the city’s two fully serviced industrial parks are close to full.
The Noranta industrial park on Mount Joy and Iroquois Rd. has three lots left from a total of 24, and the city is releasing an RFP to sell the last two lots at the airport’s industrial park. The Noranta park is selling for about $35,000/acre and the airport industrial park property sells for about $30,000/acre.
Jensen says the city is looking at establishing another industrial park, since the city is oversupplied with residential land. It is definitely a challenge with the shortage of serviced commercial and industrial land, he says.
Another challege the city faces is finding enough contractors to build on the lots once they are available. Many are coming in from other towns in northeastern Ontario to take advantage of the hot market.
