I Found this in the Northern Busniness Journal:
Real estate markets strong
By Liz Cowan
A regional in-migration trend in most Northern Ontario cities is putting some pressure on vacancy rates and boosting housing sales.
“A trend we have been tracking in most of our Northern Ontario cities is the trend towards in-migration,” said Warren Philp, Northern Ontario market analyst with the Canada Mortgage and Housing Corporation’s Thunder Bay office.
“They are coming from the area around the bigger centres. When I look at the demographic numbers of 2001 and 2006, there is a bit of a turnaround and most of the areas where there are major centres are showing some improvement,” he said.
“I maintain that the movement is within the region and not so much people from Toronto or Western Canada or Quebec flocking into Northern Ontario.”
Real estate markets in the major Northeastern markets have been strong the past two years and this year is expected to be no different.
“You are looking at a record number of sales in a few of our markets,” Philp said.
In Greater Sudbury, the MLS (Multiple Listing System) residential activity reported sales last year of 2,615, up 0.8 from 2005. The average price of a home rose from $134,440 to $150,341.
Al Fex, president of the Sudbury Real Estate Board, said 2006 was a great year.
“The agents are very, very busy,” he said. “There’s a demand for homes in the higher range and strong demand for a home in New Sudbury. In fact, a house and a garage are hard to get right now.”
Fex said it’s a seller’s market right now which does make it tougher on buyers.
“But we did have a long, dry spell. In many cases people are selling their last homes and they are getting the price they should since it has been an investment for them,” Fex said.
The real estate market is a result of a strong economy in the city, he said.
“The papers are full of job postings, the medical school has had an impact and the mining industry is hiring. It’s encouraging for people to live here. Sudbury is a draw for others from Northern Ontario or for others who went south and want to come back,” Fex said.
North Bay has experienced a strong growth in sales and Philp said the number of listings also increased.
“It could be that more folks are recognizing how strong the market is and they are selling to move up or build,” he said.
“North Bay still has the highest average price in Northern Ontario and the market has held up the best over time. There is a lack of reliance on resources and commodities and the economy is more stable and diversified.”
The average price of a home in the city last year was $160,106, up from $146,066 in 2005. Sales for 2006 were 1,446, up 10 per cent from the previous year which posted 1,316 sales.
Dave Wylie, president of the North Bay Real Estate Board, said 2005 and 2006 were banner years.
“At this time year to date (end of February), our sales are up,” he said.
One of the biggest problems in North Bay, he said, is the high cost of building.
“The new homes coming onto the market are either semi custom or custom built and over $300,000. The market isn’t developing affordable new homes. First-time home buyers are getting 40-year-old homes for $160,00 to $165,000,” Wylie said.
In-migration has been a part of Sault Ste. Marie’s strong real estate activity, Philp said.
“There is stability at Algoma Steel, increased diversification of the economy in retail, tourism and call centre side and there has been a lot of positive things happening the past few years,” he said.
“There is more confidence and people have been more active in the housing market to sell, move up or build.”
The average house price in the Sault last year was $101,882 compared to $96,303 in 2005. There were 1,404 sales recorded in 2006 and 1,292 in 2005.
Wayne Spencer, president of the Sault Ste. Marie Real Estate Board, said the market has been increasing at a steady pace over the past few years.
“We did have dry run for awhile but it started to take off. It’s a real turnaround,” he said.
Every type of home is in demand and he doesn’t see the trend changing for 2007.
“We are still the best buy in Northern Ontario for all the big centres as far as Sudbury and North Bay are concerned,” Spencer said.
In Timmins, 2006 statistics indicate a slight drop in population but the local real estate board set a record for sales in 2006. The board takes in an area that stretches from Temiskaming Shores to James Bay.
“The average price is still strong,” Philp said. “It’s a pretty tight, strong and buoyant market.”
In 2006, the average price of a home was $96,736 and there were 1,101 sales. In 2005, the price was $88,224 with 972 sales.
“We have a fair number of people coming into the community, that we are experiencing, and the Victor Project (diamond mine in Attawapiskat) has a big impact and all of mining in general,” said Roberta Toner, president of the Timmins Real Estate Board.
She said areas such as Temiskaming Shores and Kirkland Lake are also doing well with their real estate markets.
“Timmins isn’t like other communities when it comes to real estate,” she said.
“We don’t go through the extreme highs and lows but rather drop a bit or go up a bit. There are no real spikes and that is better for both the buyer and seller.”
“But we have been on the up over the past four years.”
Vacancy rates have also gone down across the Northeast in all major centres and in most towns.
In 2006, Sault Ste. Marie fell from 3.3 per cent to one per cent. Sudbury’s rate was 1.2 per cent last year and North Bay was at 2.4 per cent. Timmins was at 3.8 per cent.
Philp said the prime renting age group is between 18 to 30.
“When you look at what is happening to employment in that age group, it’s a clue to what is happening in the rental side,” he said.
Other factors affecting vacancy rates are post secondary institutions and retirees moving and choosing to rent instead of buying.
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I should replace my blasphemy of Robert Service with that! 
I was surprised when I saw it this morning. 124 new people! Go us!!
But congrats North Bay. 
And yes, that is the real reason.
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