Sudbury lakefront property values drop on recent MPAC assessments
The Municipal Property Assessment Corporation says lakefront homes outside the city centre in Greater Sudbury have declined in value.
A small decline is nothing to be worried about, said Caroline McDonald, president of the Sudbury Real Estate Board.
"The last several years the demand for lakefront properties went up and up," she said. "As a result the prices did go up."
Because the value of lakefront properties has been increasing over the past few years, a decline isn't necessarily unusual, McDonald added.
"I just think we've had a market correction and the prices have just gone down slightly."
The Federation of Ontario Cottagers Association's Terry Rees said it's hard to arrive at an across-the-board change in property values, when homes are scattered in less-populated areas.
He said low metal prices may affect the economy — and the willingness of Sudburians to pay a premium for waterfront.
"Generally, real estate would tend to reflect lower metal prices, but also for things that might be considered extravagances, that would certainly be even more so."
Rees said Sudbury is somewhat unique for the great number of residential waterfront homes as opposed to seasonal properties.
Assessments mailed out
Meanwhile, MPAC mailed out property assessments earlier this week.
The agency said assessments are accurate if they reflect what homeowners could have sold their property for on Jan. 1 of this year.
On average, MPAC said a home in the area is worth $235,000, with waterfront homes going for $363,000.
MPAC says property values will increase in Sudbury over the next year by about 1.3 pe rcent.
With files from Kate Rutherford