WINNIPEG, October 7, 2021 - The third quarter finished strongly in September surpassing three annual MLS® records. Year-to-date dollar volume of just under $5 billion surpasses the 2020 annual dollar volume of $4.9 billion and the 2,014 condominium sales for the first nine months of 2021 are comfortably ahead of the 1,847 ​annual record total set last year. Residential-attached sales at the end of September are slightly ahead of the 2020 annual sales record of 1,060, with 1,081 year-to-date sales. The fourth quarter will add to these totals reached in September.

“The new peak for annual dollar volume is a combination of increased sales and higher prices," said Kourosh Doustshenas, 2021 President of the Winnipeg Regional Real Estate Board. “As for condominiums, the growing spread between single family-detached homes and condominium average sale prices in 2021 have made the latter property type an even more affordable option for buyers, especially first-time buyers who do not have the benefit of equity gains from the sale of their existing home. Moreover, residential-attached properties offer another affordable option." 

The 1,501 MLS® sales recorded in September dropped 15% from September 2020 but gained 16% over the previous 5-year average for this month. Up until 2020, a September with sales reaching, or just passing the 1,200 sales mark was considered an excellent month. Likewise, September dollar volume of close to, or above $500 million in 2021 and 2020 respectively makes previous Septembers appear quite modest at less than $350 million in sales transactions.

It is worth noting that, contrary to some MLS® property types, such as single family-detached homes and vacant land, not being able keep pace with last year's third quarter surging sales, condominiums, duplexes, and commercial properties all made gains compared to the same period last year. Duplexes stood out with 81 in 2021 versus 48 sales in 2020.
The current supply of listings at the end of September is 2,840, down 28% from the same time last year. With a high conversion rate of new listings to sales of 78%, it is readily apparent if there is a pick- up in new listings in the fourth quarter, it will lead to increased sales. In September, new or current listings of 1,922 were down 16% from 2020, and 19% from 2019. 

“A number of Winnipeg neighbourhoods did not meet the unrelenting demand for single family properties," said Doustshenas.

No better example is in the southwest Winnipeg neighbourhood of Whyte Ridge where there were 12 sales in September and only 1 listing left for sale in October. This translates to a sales-to-active listings ratio of 1200%. River Park South in southeast Winnipeg had 23 sales, leaving only 3 listings available for sale in October. 

Regional MLS® areas outside Winnipeg were largely below 100% sales-to active listings ratios meaning at month end there are more listings for sale than sales. However, the RM of Brokenhead was at 112% with 19 sales and 17 listings for sale while the City of Selkirk is at 167% with 20 sales and 12 listings.

Given the talk of not enough listings to meet demand this year, the 19,203 listings entered on the MLS® in the first 9 months are down less than 2% from the same period in 2020. Condo listings are actually up 3% while residential-attached listings have risen 17%.

The year-to-date condominium average sales price of $244,171 has resulted in a very modest increase at less than 2%. One out of four sales are from $150,000 to $199,999 and 83% fall between $100,000 and $350,000.

Single family-detached homes on the other hand have experienced a greater degree of price appreciation at 12% with a year-to-date average sales price of $379,056. Through the third quarter, in comparison to a supercharged second quarter with two months of sales over 2,000 each, showed moderation with prices less heated. The second quarter average single family home sales price was $388,422, whereas the third quarter came in at $374,777.

A breakdown of the 5 MLS ® zones in Winnipeg and the regional area outside the city shows how the third quarter was more subdued. The southwest area of the city at $473,631 came down from $513,008 in the second quarter and the regional municipalities fell back from $364,549 to $322,619.

“Our regional market delivers some of the most affordable house prices in Canada," said Doustshenas. “Increasing new housing supply and returning to a balanced market is the key to containing house price increases in the fourth quarter and beyond."

“Your REALTOR® is the market expert and can give you insights into the ebb and flow of real estate sales activity among all the different property types, said Marina R. James, CEO of the Winnipeg Regional Real Estate Board.

Winnipeg, September 8, 2021 –1,626 sales were recorded in August 2021 making it the second-best August on record. While 12% off the record-setting 1,845 sales transacted in August 2020, it was up 9% over the 5-year average for this month.

“There has been some moderation in sales activity in our regional market since June 2021," said Koroush Doustshenas, president of the Winnipeg Regional Real Estate Board. “Though it is important to acknowledge July and August were still very active and ahead of previous same month sales with the exception of 2020."

Active or available listings for sale at the end of August are at just under 3,000, a 30% decrease from the same time in 2020. New listings entered on the MLS® in August were 2,157, a 9% drop from last August but only 3% off the 5-year average for this month.

“While listing supply is lower than previous years, there is some improvement in inventory owing largely to the less rapid turnover of listings to sales that have been occurring at an accelerated pace this year," said Doustshenas.

Year-to-date sales of 13, 414 are up 27% over 2020 and the 5-year average. Prior to 2020 where sales vaulted well ahead of 2019 to finish just over 16,000, the 2021 year-to-date total is in line with WRREB's more recent annual totals of over 13,000. With four months to go and expectation of a strong finish to 2021, it is a foregone conclusion 2021 will usher in WRREB's third consecutive year of record annual sales.

MLS® dollar volume will also set a new annual record and has risen 41% above 2020 for the first 8 months. It is just $400 million away from closing in on the best annual total set last year of $4.9 billion. In August 2021 there was close to $539 million dollars transacted.

In looking more specifically at MLS® property types, residential-detached or single-family homes saw sales down nearly 15% from the same month last year but up 5% over the 5-year average. Condominium sales of 212 were only two fewer than August 2020 and are up 58% for the year at 1,808 sales.

The Canadian Real Estate Association's MLS® Home Price Index, which tracks the most typical property type selling in our regional market every month, shows prices have moderated slightly since peaking in June with a higher index and benchmark price. The benchmark price of a single-family home was $340,800 in June, $333,100 in July and $333,700 in August. Though it is worth noting a two-storey home topped out at $362,000 in June, however, fell back to $348,600 in August.

As for condominiums, their high point this year happened in July as climbed up from $202,700 in June to $209,700 in July and dropped back slightly to $207,700 in August.

Another housing index, the National Bank-Teranet HPI, which produces a housing affordability monitor report for major markets across the country, indicates in its most recent one released in August, that for the price of a representative home of $369,511 in Winnipeg the required household income to afford it is $75,352 and it will require 28 months to save for the down payment (savings rate of 10%). In sharp contrast you need to earn $124,891 to afford a $618,684 representative priced home in Ottawa/Gatineau and will require 52 months to save for a down payment.

“With current dialogue surrounding how home ownership is becoming out of reach for Canadians we must keep things in perspective that all markets are local and behave differently across the country", said Doustshenas. “Winnipeg is still one of the most affordable housing markets in the country with many Manitobans being able to afford a home or condo."

“2021 is proving to be a very dynamic and fast-paced real estate market," said Marina R. James, CEO of the Winnipeg Regional Real Estate Board. “You should contact your REALTOR®, an expert on the local market, to gain a full appreciation and understanding on what is happening in the current market.