What’s Happening in the Thunder Bay Housing Market?
The average residential sale price in the Thunder Bay housing market increased by 10.5 per cent between 2025 and 2026, rising from $384,565 to $424,944. The number of sales decreased by approximately 14 per cent over the same period, falling from 1,292 to 1,107. The number of listings also decreased by approximately 3.7 per cent, declining from 1,814 to 1,747.
Looking ahead, residential sale prices are expected to remain steady through the end of 2026, while sales activity is also expected to remain steady throughout the fall market.
Thunder Bay remains a seller’s market, supported by a shortage of listings and strong buyer demand. Homes are averaging 18 days on market, consistent with last year, and multiple-offer situations continue to be common. However, buyer fatigue following a highly competitive spring and summer market is beginning to influence activity. The market is expected to remain steady through the fall and into 2027.
A lack of homes that meet buyers’ budgets and needs is the biggest factor preventing more first-time buyers from entering the market.
According to Kelsey Belluz, Broker and Manager at Thunder Bay-based REMAX Generations Realty Brokerage, the GST/HST rebate has not meaningfully affected the local market, largely because of a lack of new-construction developments where buyers could benefit from the program. While the rebate has generated more questions and changed some conversations with buyers, uncertainty around how the rebate works has also created confusion.
The rebate has had no noticeable impact on specific price points, neighbourhoods, or types of new construction, as the city continues to face a shortage of land available for new development.
Location is the factor buyers are least willing to compromise on. However, buyer preferences have begun to shift, with some purchasers now considering areas of the city they may previously have viewed as undesirable because these are among the few areas they can afford. There is also growing interest in fixer-uppers as buyers search for more affordable ways to enter the market.
Thunder Bay continues to be an active housing market, with a persistent shortage of listings and limited new construction contributing to another significant year-over-year increase in average sale prices. According to Kelsey, the local market appears relatively insulated from broader Canadian housing trends, and these conditions are expected to continue into 2027.
The foreign buyer ban has had little impact on affordability or new construction development.
Frequently Asked Questions
How have home prices changed in Thunder Bay?
The average residential sale price in Thunder Bay increased by 10.5 per cent between 2025 and 2026, rising from $384,565 to $424,944.
How have sales and listings changed in Thunder Bay?
The number of sales decreased by approximately 14 per cent, from 1,292 to 1,107, while the number of listings decreased by approximately 3.7 per cent, from 1,814 to 1,747.
What is expected for Thunder Bay home prices in 2026?
Residential sale prices are expected to remain steady through the end of 2026.
What is expected for home sales in Thunder Bay through the fall market?
Sales activity is expected to remain relatively steady through the fall.
Is Thunder Bay currently a seller’s market?
Yes. Thunder Bay remains a seller’s market, supported by a shortage of listings and strong buyer demand. Homes are averaging 18 days on market, consistent with last year, and multiple offers continue to be common.
What is the biggest barrier for first-time buyers?
A lack of homes that meet buyers’ budgets and needs is the biggest factor preventing more first-time buyers from entering the market.
How is the GST/HST rebate affecting the Thunder Bay housing market?
According to Kelsey Belluz, Broker and Manager at REMAX Generations Realty Brokerage, the GST/HST rebate has not meaningfully affected the Thunder Bay market, largely because of a lack of new-construction developments where buyers could benefit from the program. While the rebate has generated more questions from buyers, uncertainty around how the program works has also created confusion.
Has the GST/HST rebate affected specific neighbourhoods or price points?
The rebate has had no noticeable impact on specific price points, neighbourhoods or types of new construction, as Thunder Bay continues to face a shortage of land available for new development.
What are buyers least willing to compromise on?
Location is the factor buyers are least willing to compromise on. However, some buyers are now considering areas they may previously have viewed as undesirable because those areas remain among the few they can afford.
Are buyer preferences changing?
Yes. There is growing interest in fixer-uppers as buyers look for more affordable ways to enter the market.
Why has Thunder Bay remained resilient compared with other markets?
Thunder Bay continues to be an active housing market, with a persistent shortage of listings and limited new construction contributing to rising prices. According to Kelsey Belluz, the local market appears relatively insulated from broader Canadian housing trends.
What is the outlook for Thunder Bay through 2027?
Current market conditions are expected to remain relatively steady through the fall and continue into 2027.
Has the foreign buyer ban affected affordability or new construction development?
The foreign buyer ban has had little impact on affordability or new construction development.
