Sudbury 'a great place to buy' despite shrinking economy, realtor says

Morning North8:04Optimism at Real Estate Conference in Sudbury

Sudbury's housing prices are remain stable despite the economy. Much of the discussion at a real estate conference in Sudbury did focus on the economy. We heard from a long time realtor in the city and from the director of development of Greater Sudbury.

A Sudbury realtor told CBC News it's a great time to buy a house in the city thanks to the low cost of borrowing and relatively cheap prices. 

At the city's first real estate conference Thursday, which is known as Reocon, agents discussed how the region appears poised to rebound despite a shrinking local economy and higher unemployment. 

"With interest rates under 3 per cent and our average house price being at $250,000, it doesn't make sense that someone would actually rent a house," said Cathy Gregorchuk, who's been selling real estate in the city for 32 years.

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"There are still homes in Sudbury you can purchase for close to the $100,000 mark. Where else in Ontario can you find that? Obviously, it's a great place to live. But it's a great place to buy."

The unemployment rate in the city is up to 8.4 per cent, which is nearly 2 per cent higher than the provincial average. 

"There's no question that unemployment is on the rise. And we have seen a significant job loss over the last 12 months," said Ian Wood, Sudbury's director of economic development. 

He noted it's clear the local economy is shrinking but the diversity of jobs will help with the turnaround when conditions eventually improve. 

"It's buffering a little bit. I don't want to overstate it. We're still a resource-based economy, we're still seeing those swings. But perhaps the trough isn't as deep," Wood said.

'Hopeful for a turnaround' 

But real estate agents in the area say they have seen the economy in dire straits before.

"I've probably been through the best of times and the worst of times," Gregorchuk said.

She said she hopes that down the road, the city will be less affected by the ebbs and flows of the mining industry. 

"Back in the early '80s, our economy relied very heavily on our nickel prices and our mines and different components there," Gregorchuk said. "Today, when Xstrata or Vale has a hiccup, we don't feel it as much, because we've become very, very diversified."

Wood said the city is investing in tourism, education and innovation, health research and film and television to bring more money to the region. 

"I think the general consensus in the community is a bit uncertain. But certainly hopeful for a turnaround. And certainly, that's why we see the ongoing commitment to capital investment as important," Wood said.