The average residential sale price in the Thunder Bay housing market has increased by 10 per cent year-over-year across all property types in 2025, from $349,496 to $386,184. The number of sales transactions increased by 15.5 per cent for the same time period (from 1,739 to 2,008). The total number of listings increased by 0.4 per cent (from 2,601 in 2024 to 2,612 in 2025). Average residential sale prices will rise by five per cent going into 2026, compared to 2025. Sales are anticipated to rise by 2 per cent going into 2026, compared to 2025.
Trends in the Thunder Bay Housing Market
Looking ahead to 2026, Thunder Bay will transition to be a sellers market. The top three neighbourhoods anticipated to be the most desirable in the region in 2026 are semi-rural Thunder Bay, River Terrace and Parkdale. Semi-rural Thunder Bay will be very desirable because it's one of the most sought after destinations in the region. People are looking for more space and a slower lifestyle but still being minutes from amenities. This is driving up the demand year over year for this type of area. River Terrace location no longer has room for new construction development and with the hospital close by lots of business professionals like the location, this is increasing values for the current homes in this area and there are not many that come to market, making this a tough area to enter. Parkdale is another new development location where they have opened up new building lots. They have sold quickly and the next phase is already quickly being developed. There is a lack of homes being listed on the market and many young families wanting to be in the area. With the new build capabilities just around the corner we anticipate this highly sought after area close to many amenities will be an even bigger hit, and hopefully more homes available for the buyers. Single-detached homes are expected to see the strongest demand and sales activity in the region in 2026.
Buying/Selling Trends for homebuyers and sellers looking ahead to 2026:
- First time homebuyers seem to be increasing their budgets, typical price range for first time home buyers are ranging between $350,000 -$450,000
- Move up homebuyers are looking for more space for their families. More privacy or better more convenient locations for their lifestyles. Move-up/move-over homebuyers are ranging between $550,000-$750,000
- Retirees are looking to downsize, but with the cost of our market they are sometimes spending more on a home they're downsizing to. They are looking for one level living or condo living. Average price range for retirees are $550,000-$700,000.
- There is a lack of new development land available to the consumer. This is making it difficult for buyers to get into new home construction. Although there have been some new lots in popular subdivisions opening up, there are not as many as there once were. This is contributing to the increase in resale home values.
The market in Thunder Bay was not affected like the majority of Canada. It's not expected to slow down in 2026 based off of the amount of buyers still in the market to purchase with less supply. Rental costs are increasing and buyers, if they're ready with a down payment, should consider purchasing. Real estate investors are scooping up rental properties due to the high rental rates.
Declining interest rates have people very excited and willing to spend a slight bit more in comparison to last year. If they rise again we will see some buyers be a little more shy to enter the market, however there is no anticipated negative impact overall in the market. Social media is the most common way for someone to find and search for a home nowadays. Ensuring you can capture the lifestyle the potential buyer will get when they purchase a specific home helps attract more purchasers to the home. Thunder Bay remains a very active market and is not anticipated to slow any time soon.
