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.

It says there has been a 9 per cent drop in the value of homes on Onwatin Lake in Hanmer,8 per centon Bowland's Bay near Skead,12 per centon Lake Panachenear Whitefish and 18 per centon Fairbank Lake, in the northeast portion of the city.

A small decline is nothing to be worried about,saidCaroline 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."

Becausethe value of lakefront properties has been increasing over the past few years, adecline 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'sTerry Rees saidit's hard to arrive at an across-the-board change in property values, when homes are scattered in less-populated areas.

He saidlow metal prices may affect the economy and the willingness ofSudburiansto 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 saidSudbury is somewhat unique for the great number of residential waterfront homes as opposed to seasonal properties.

Assessments mailed out

Meanwhile, MPACmailed outproperty assessmentsearlier this week.

The agency said assessments areaccurate if theyreflectwhat homeownerscould have sold their propertyfor on Jan. 1of this year.

On average,MPACsaida 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 percent.