WINNIPEG -   June sales of 1,528 fell short of June 2018 market activity by 1% and 3% from the 5-year average for this month. What really stood out in June is extensive inventory which offers buyers record levels of choice in one of the most affordable housing markets in the country.

June dollar volume of nearly $463 million declined 2% from June 2018 yet is equal to the 5-year June average. New listings are strong again in June with 2,698 entered on the MLS®, an 8% increase over June 2018. Current inventory going into summer is approaching 6,000 listings, 14% higher than 2018.

“Despite a slight decline in June sales activity the record -setting May helped propel second quarter results to match the 5-year average," said Ken Clark, president of WinnipegREALTORS®.  “This year's second quarter is just 4% behind our best quarter on record in 2016."

In terms of June single family home sales activity, sales were neck and neck between the two most active price ranges of $250,000 to $299,999 and the $300,000 to $349,999. Together they represent 35% of total sales.  If you add the two next similarly paced price ranges of $200,000 to $249,999 and $350,000 to $399,999 you reach 60% total sales activity. Condominium sales were most active in the $150,000 to $199,999 at 29%. The next most active price range was from $200,000 to $249,999 at 19%.

“ It is important to keep in mind that sales activity varies between different  price ranges and drops off significantly as you climb up the price ladder," said Clark. “In June the price ranges from $500,000 and above made up just 10% of total single family home sales. “

Year-to-date sales of 6,823 are up nearly 4% over the first six months of 2018. The only two years they trail are the record-setting years of 2016 and 2017 where both had over 7,000 sales at this time.  Dollar volume after six months is over $2 billion and slightly lower than the highest total recorded in 2017 and nearly ahead by 5% over 2018.

“A true sign of a strong market is when the sales and dollar volume increase at a reasonable but steady pace, and the first 6 months of 2019 certainly make that evident", said Clark.

At the end of the first half of every year WinnipegREALTORS® likes to see how average single family home prices are tracking in the 5 MLS® zones within Winnipeg and the rural zone encompassing the market region outside Winnipeg.  As you can see from the chart below, all zones show prices are slightly ahead or even with last year with the exception of the North zone which is down by a small margin.

The highest average priced MLS® zone is the Southwest at $435,430 while the lowest are the North and West zones at $263,117 and $263,852 respectively. The overall average single family sales price is $329,841, a very modest gain over the $325,314 recorded for first six months in 2018.

“A healthy supply of listings is keeping our house prices in check and very affordable," said Clark.

The June 2019 RBC Housing Trends and Affordability Report highlights Winnipeg as being just above its long-term average level of affordability since 1985. It comments that “slow-rising prices keep ownership costs very manageable".

Looking ahead to the second half of 2019, CREA revised its 2019 forecast to indicate a recovery in home sales is underway across a number of market regions.  This is certainly the case in the Winnipeg Metro Region with sales improving over 2018. CREA is calling for an increase in sales of over 4% for Manitoba.

“Not every market is the same nor house within a market," said Marina R.  James, CEO of WinnipegREALTORS®. “There are many factors at play so you need to be calling a professional REALTOR® - a market expert – to help you meet your home buying and home selling needs."

WINNIPEG - While Manitobans welcomed spring with open arms given a long winter they also were relieved to know potential flooding threats did not come to fruition. Thanks to major engineering flood mitigating projects such as The Winnipeg Floodway or Duff's Ditch, as it is commonly referred to as, thousands of properties have been saved over many years from the ravages of water damage.

April sales of 1,223 were down less than 5% from April 2018 while dollar volume decreased 3%.  It is a 60 sales difference from 2018.

Single family dwellings and condominiums remain close to last year's results with six fewer sales in single family and eight in condominiums.

2,711 new listings were added to the market in April to create a healthy supply of nearly 5,000 listings available for sale in May. Current inventory sits at 4 months of supply. This is considered balanced from an overall market perspective.

“The strong influx of new listings this year bodes well for an uptick in increased sales as we head into our busiest months of the year," said Ken Clark, president of WinnipegREALTORS®. “The wide choice and affordable options available for buyers will help make this a reality."

 Year-to-date sales are up 2% while dollar volume is 3% higher with over $1 billion worth of sales activity. Listings entered for the year are tracking 5% ahead of last year for the first four months.

The average sales price for single family homes or residential-detached in April was $332,185. Helping raise the average sale price up to this level were 7 sales over $1 million including one for $2,100,000 in Tuxedo. The condominium average sale price as well saw it rise well above its previous month average to $248,284. There were some higher priced sales of which one went for just under $1 million on Waterfront Drive.

The most active price ranges in percentage terms of total sales for single family homes in April where from $200,000 to $399,999. The $250,000 to $299,999 price range realized the most sales at 18% of all sales.

For condominiums, the $250,000 to $299,999 price range was just edged out by the $150,000 to $199,999 price range. The latter represented 25% of total sales with the former having 23%.

In April the Bank of Canada maintained the overnight lending rate at 1.75%. This did not come as a surprise as many economists state we will not see a rate increase in 2019 due to uncertainty around trade including ratification of the Canada-United States- Mexico Agreement.  Even an interest rate cut may be a possibility.

The Bank of Canada Governor Stephen Poloz spoke to the April monetary policy report and in addressing the housing market he said markets such as Halifax, Montreal, Ottawa and Winnipeg are seeing solid activity.

It is interesting to note Governor Poloz was in Winnipeg on May 6, 2019 as part of the Canadian Credit Union Association national conference. The Winnipeg Chamber of Commerce hosted a luncheon featuring a conversation with him.

“I appreciate the governor expressing a vote of confidence in our housing market," said Clark. “We know Winnipeg's market is a resilient and steady one and should continue to perform well this year."

WINNIPEG – Spring is a time of optimism, when we cast off winter's gloomy grip and walk cheerfully into the warm sunshine. This renewal of energy is apparently being reflected in local housing sales for the beginning of 2019 in the Winnipeg METRO Region.

First quarter sales are off to a good start. The 2,367 sales transacted in the first three months show a 6% increase over the same period in 2018, and only a 3% dip from the record-setting years of 2016 and 2017.  Similar to sales, there is a 6% rise in year-to-date listings with more than 5,400 entered on the MLS®. Dollar volume of close to $700 million is up 7% from 2018.

March sales of 1,009 resulted in nearly a 4% gain in comparison to March 2018, while dollar volume of just under $300 million edged out last March by less than 3%. The 4,212 active listings sitting in inventory at the end of March are 8% higher than they were at the same time last year.

 “The solid first quarter sales activity is a positive momentum builder going into the busier springmarket," said Kenneth Clark, president of WinnipegREALTORS®. “No interest rate hikes are on the horizon, and buyers know PST relief is coming July 1 with all of the ancillary purchases that go with the purchase of a home."

 March single-family home sales activity was most active in the $300,000 to $349,999 price range and therefore supplanted the next lower price range of $250,000 to $299,999. March 2018 was the exact opposite and by a 45 sales margin. Now more than one in two single-family home sales occur over $300,000. It will be interesting to see if this will become the norm as the year progresses.

The shift in sales activity to higher price ranges is a gradual process in a stable market such as Winnipeg's.  Of note in March - when you compare it to last March - are the rural MLS® areas as a whole, which represented 26% of total single-family home sales, and saw its average sale price increase from $315,595 to $323,873. The northeast area of Winnipeg also saw a small bump up in its average sale price to $289,857, and a 17% increase in sales activity. These two developments alone help explain the upward movement in sales activity.

Condominiums sales were virtually the same as March 2018 with price range activity nearly a repeat of last year with percentage of sales under $300,000 being at 87% and 86% respectively. The most active price range was from $150,000 to $199,999 though this March captured 35% of total condo sales while March 2018 was less at 27%, owing to more activity in the lower price range from $100,000 to $149,999.

The average single family home sales price in March was $326,433, whereas the condominiumaverage sale price recorded was $227,538.

“All markets are local and vary within, as illustrated by the difference in property type price range activity such as in single-family homes and condominiums," said Clark. “The strength of our market is the many affordable choices and options available to buyers, and that will continue in 2019."

Speaking of affordability, RBC's March 2019 Housing Trends and Affordability Report shows that in both Saskatoon and Winnipeg you are better off owning an average-priced condo apartment than renting a two-bedroom apartment. 

The report also indicates Winnipeg's market is very close to its long-term average aggregate measure of 29.6%, which is the proportion of median pre-tax household income that is required to service the cost of mortgage payments (principal and interest), property taxes, and utilities based on the average market price of all housing types in any given market.  

This year's federal budget increased the Home Buyers' Plan (HBP) withdrawal limit from $25,000 to $35,000, and extended the HBP to those going through a marital breakdown so they can use their RRSPs to put towards a down payment on a home. These changes are effective immediately.

The federal government will also carefully monitor the federal mortgage stress test, given industry concerns over how these new regulations are unnecessarily creating unintended consequences on housing markets which are in balance - or even struggling - compared to overheated ones. 

“Be it changing market conditions within the various property types or new budget measures affecting housing,  you should be calling your Realtor to keep abreast of what these changes mean as you try to better understand and navigate the housing market," said Marina R. James, CEO of WinnipegREALTORS®.

Winnipeg's housing market remains one of the more affordable in Canada, and along with therecent changes to the HBP and PST, we have much to be optimistic about.​

Since 1903, WinnipegREALTORS® has assisted its members in achieving high levels of excellence in organized real estate by providing superior tools and services that enhance and build a vibrant real estate industry. Representing over 1,975 REALTORS® and other industry related professions active in the Winnipeg metropolitan area, WinnipegREALTORS® promotes the value of a REALTOR® and organized real estate. WinnipegREALTORS® provides its members with essential market information, professional development sessions, networking opportunities, marketing products, an effective industry voice and strong leadership to further their professional success.

WINNIPEG -  February sales of 724 show a 6% increase over February 2018 and a 10% rise in dollar volume at over $215 million.  1,447 new listings were added to the market in February which resulted in 3,735 active listings available for sale at the end of February. This healthy supply of listings represents a 10% increase over last year.

Year-to-date sales are up 8% over the same period in 2018 and 3% over the 5-year average. They are only 2% behind the record- setting pace of 2016.

“We have now had two back to back months of improvement in sales and listing gains over 2018," said Kenneth Clark, president of WinnipegREALTORS®.  “While early in the year and a cold one at that, it does show buyers are making necessary adjustments to mortgage regulation rules to complete a transaction.  Some of the increase in listings, most notable in January with a 19% increase in new listings coming on the market, is that sellers are feeling more confident about taking their next step in the local housing market."

 Helping set the stage in 2019 for continued recovery from a slow start in 2018 is the fact mortgage rates are remaining historically low with no expectation of another interest rate increase in the next few months and possibly later in the year. Affordable prices remain intact with more than half of all condo sales in February selling for under $200,000 and nearly half of single family homes selling for under $300,000.

A highlight of February was the strength of residential -detached or single family home sales happening outside the city of Winnipeg. The 152 sales represented 30% of the total amount sold in February. While the Steinbach MLS® area led the way with 28 sales, it is worth noting WinnipegREALTORS® has recently welcomed rural real estate offices to its membership from Winkler, Gimli and Lac du Bonnet.

Single family home sales of 505 increased 6.5% in February when compared to February 2018.  Condominium sales were up as well with 107 sales, a 5% increase over February 2018 and 10% greater than the 5-year average of 97 sales.

Other MLS® property types which outperformed February 2018 with double-digit percentage increases were commercial, single- attached and duplexes.  The 34 single-attached sales represented close to 5% of total MLS® sales in February where residential-detached and condominium sales captured 70% and 15% respectively.

Looking ahead to March, all three levels of government are releasing their annual budgets. The City of Winnipeg unveiled their operating and capital budget on March 1, 2019 with a proposed 2.33% property tax increase. The provincial budget comes down on March 7th while the federal government will release theirs on March 19th.

Noteworthy this year is there has been a strong push from the real estate industry to urge the federal government to provide relief to millennials who were disproportionately affected last year by the mortgage stress test.

Federal Finance Minister Bill Morneau has already acknowledged this reality and has indicated he is looking to provide young homebuyers with better means to own a home. A national survey conducted last year by Abacus Research for the Canadian Real Estate Association (CREA) on housing affordability showed 85 per cent of millennials and new Canadians want to own their own homes. CREA CEO Michael Bourque says, “The idea of renting for life does not appeal to either group."

“The combination of a wide choice of affordable properties to purchase in our local market gives us an advantage over more expensive housing markets in the country," said Clark. “However our first-time buyer market in 2018 did experience a noticeable drop off in sales activity so any relief from the federal government's budget would be welcome here too."

“Our REALTORS® are professional and informed," said Marina R. James, CEO of WinnipegREALTORS®.  “They make it their business to keep on top of any new developments that affect the housing market."

WINNIPEG  - January MLS® sales of 634 increased 11% over the same month last year and 8% over the 5-year average for January.  Dollar volume rose 12% to $175 million. The 1,783 new listings entered on the MLS® in January also resulted in a double-digit gain of 19% compared to January 2018.

“This is our best start on record for January so pleased to see Winnipeggers engaged in our local real estate market right off the hop," said Kenneth Clark, president of WinnipegREALTORS®. “However, as they say, one month does not make a year so we are cautiously optimistic.

On a  positive note, mortgage rates are remaining historically low with the Bank of Canada signaling a wait and see approach on any interest rate increases this year. Buyers have also had over a year to adjust to the B-20 mortgage regulation rules which came in to effect on January 1, 2018.

“The noticeable bump up in new listings includes some of those move –up buyers last year that decided to remain on the sidelines to figure out what they could afford to buy based on the new mortgage regulations," said Clark. “Helping make it easier for them to enter our housing market this year is a combination of a healthy supply of available listings to choose from at affordable prices." 

No better example of affordable prices came by way of the condo sales activity in January 2019. In what is more the exception than the rule in our local market, there were 34 sales under $150,000 compared to 12 in January 2018. A number of these units sold for as low as $31,500 with total square footage of less than 500 square feet.  56% of total condo sales went for less than $200,000.

For comparison purposes, 22% of residential-detached or single family homes sold for less than $200,000. On the other end of the price spectrum, the highest-priced single family home sold for $910,000 while a condominium sold for $832,229.

 WinnipegREALTORS® just held its annual forecast breakfast and indicated that sales should outpace 2018 while prices will remain stable. The condo property type in particular is experiencing an elevated supply of listings going into 2019 so will be one to watch closely.

“Knowing which questions to ask with a myriad of terms and conditions to consider is best left to a REALTOR®- an experienced negotiator who can be objective about the buying process," said Marina R. James, CEO of WinnipegREALTORS®. “Our REALTORS® are there to serve your interest in achieving the  best outcome for you."

WINNIPEG  - In comparison to a near record year in 2017, 2018 held its own with sales down 5% from 2017 and 6% from the best year on record in 2016. Sales of 12,773 are down less than 3% from the five – year average and 1% lower than the 10-year average.

Annual dollar volume on the other hand of $3.77 billion decreased less than 4% from 2017 and is up nearly 3% from the five-year average.

The 23,834 listings entered on the MLS® in 2018 rose 2% over 2017. There are 3,235 listings available for sale at the end of 2018.

“Keeping things in perspective, with some of the headwinds we faced in 2018 with higher interest rates and  more stringent mortgage qualification requirements, it should be no surprise that 2018 fell short of our best years on record," said Chris Dudeck, outgoing president of WinnipegREALTORS®.  “Simply put, we believe fewer buyers were able to qualify and successfully complete a purchase they wished to make in 2018."

Dudeck added, “I see 2018 as more policy-induced retraction, albeit a modest one, than changes in key market factors from 2017." Market metrics are closely aligned between the two years.  For example, in terms of achieving a total sales price dollar value ratio close to total list price dollar value in 2018 for single family homes which sold, the annual ratio compares very favourably – 98.48% versus 98.59% in 2017. Another metric to note is average days to sell a home or condo in 2018 only took one day longer than 2017."

Sales transacted in both single-family homes and condominiums were only one day off the number of days on average it took to sell them in 2017. One of the main reasons the WinnipegREALTORS® market region was less affected in comparison to some other housing markets is its favourable housing affordability.

The December 2018 RBC Housing Trends and Affordability Report indicates “ownership costs remain well under control". The measure of 31% for the third quarter (the percentage of median pre-tax household income required to service the cost of mortgage payments, property taxes and utilities based on the average market price of the aggregate of all housing types) is very close to the long-run average of 29.5%. The RBC Report states: “The slowdown in activity in 2018 has been orderly with demand and supply remaining in balance overall, although the condo segment showed more visible signs of weakness."

Speaking of prices, the average residential-detached or single family home sales price in 2018 was $321,945, a very modest increase of 2% over 2017.

Two MLS® areas least impacted by buyer challenges were the southwest zone of Winnipeg and the rural municipalities surrounding Winnipeg.  The former saw sales decline under 1%, while the latter rural zone decreased 1% in comparison to sales generated in 2017. The rural zone continues to represent the highest percentage of sales of all MLS® areas at over 26%.

Over half of the residential-detached sales in 2018 occurred under $300,000 with another 28% selling from $300,000 to $399,999. The 9,287 sales represented nearly $3 billion in dollar volume with the most expensive home selling for $2.6 million.

Nearly 90 % of all condominium sales in 2018 were under $350,000 with the $150,000 to $199,999 price range the most active with 27% of total condominium sales. There were 1,638 transactions worth $391 million. The highest-priced condominium sold for $1,200,000.

WINNIPEG - November MLS® sales of 864 are right in line with expected sales generated for this month. Sales decreased less than 2% from November 2017 and below 1% from the 5-year November average. This now makes for two months in a row of solid sales for the fourth quarter and this time of year. 

“Buyers and sellers are making the adjustments necessary to complete sales and end the month off on a positive note," said Chris Dudeck. “We have reason to remain optimistic that December will finish off strong and conclude a year where sales have moderated from the busiest years on record in 2016 and 2017." 

 Year-to-date sales of 12,235 are down 5% from the same period in 2017 while dollar volume of $3.6 billion decreased 3% from 2017.  Sales are closely aligned with the three previous years to 2016 which is WinnipegREALTORS® best year on record at 13, 632 sales. 

To reaffirm and dispel any notion that the real estate market is not a year round activity, new listings in November at 1,400 increased 8% over November 2017. 

“While some get caught up in holiday shopping with retail outlets teeming with foot traffic, there are many more shoppers looking at our real estate offerings in the MLS® market," said Dudeck.  “There are over 4,000 listings to choose from as we head into the last month of the year." 

In November, while residential-detached or single family home sales of 610 were down ever so modestly at less than 2% or just 11 sales. Condominiums had one of its best Novembers on record at 122 sales, a 10% increase over November 2017. 

Price range sales activity  in November for these two main property types shows how both compared to large housing markets in the country are more affordable and within the local market how condominiums offer less expensive options for buyers. 

For residential-detached sales, all price ranges from $150,000 to $399,999 were in double-digit percentages with the $250,000 to $299,999 highest at 19%. Together they captured 70% of total residential-detached sales. 

On the other hand, condominium price ranges which were all in double-digit percentages went from $100,000 to $299,999 with the $200,000 to $249,999 price range most active at 26%. They represented 81% of total sales. 

In terms of how long it took on average to sell these properties in November, residential-detached properties was 38 days, one week quicker than condominiums. The highest home and condominium sale prices were $1,600,000 and $644,255 respectively. 

“Taking stock of your year should include reaching out to your REALTOR® to ascertain where you are as a homeowner or one looking to buy in the next year," said Marina R. James, CEO of WinnipegREALTORS®. “REALTORS® know the market and can advise you accordingly."

WINNIPEG – October MLS® sales of 1,107 increased 8% over October 2017 and 1% over the 5 –year average for this month.  Sales rebounded and actually outsold a slower performing September as usually it is the other way around. 

A record was set with the highest dollar volume ever achieved for the month of October. Just under $330 million was transacted this October, a 13% increase over October 2017. 

Year-to- date sales of 11,371 are down 5% from the same period in 2017 while dollar volume of $3.36 billion is just shy of 4% off the record pace in 2017. Listings entered on the MLS® to the end of October are slightly ahead of last year with both respective years over 21,000 listings. The big difference behind fewer sales in 2018 is 52.6% of listings sold compared to 56.5% in 2017. 

“October results showed how our local market despite some challenges can quickly rebound and deliver solid results," said Chris Dudeck, president of WinnipegREALTORS®.  “There still remains a wide range and selection of properties for sale with two months to year end." ​

As for specific property types, both residential-detached and condominium sales activity in October were right in line with their 5-year average for this month of 798 and 143 respectively.  Where these two depart in similarity is in the percentage of new listings which sold in October; 67% for residential-detached versus 50% for condominiums. 

The average sales price for these two property types diverged as well from October 2017. In October 2018 six homes sold for over $1 million with one selling for $1.9 million. This helped propel the average residential-detached sales price up 4% to $324,786. On the other hand, condominiums had an unusually strong average sales price in October 2017 of $254,187 so no surprise it was not as high in October 2018 at $234,509. 

The year-to- date average residential-detached sales price rose to $323,001, a 2% increase over the same period a year ago. While the condominium year-to-date average sales price of $239,349 experienced a drop of less than 2% from 2017. 

The most notable market region area to contribute to the increased residential-detached sales this October was from the outlying rural municipalities. Compared to the same month last year, rural sales increased 26% and also represented 26% of the total residential-detached sales. 

Another area which performed well in October was the southeast quadrant of Winnipeg. It had the second largest percentage increase at 13%. In respect to condominium sales, the southwest quadrant of Winnipeg showed the biggest improvement in outperforming last October's condo sales with a 16% increase or 13 more sales. 

“Looking ahead to November and the end of the year, a real positive to build on for Manitoba is the economic indicator showing U.S. exports increased 21.9% in the first eight months of 2018, first among provinces," said Dudeck. “This is very encouraging knowing a new NAFTA/USMCA agreement has been signed to give more certainty and confidence to Manitoba businesses which are dependent on exporting their products and services south of the border." 

“Only a REALTOR® can help you decipher all the subtleties and nuances inherent in the ebb and flow of a dynamic housing market," said Marina R. James, CEO of WinnipegREALTORS®. “Reach out to your REALTOR® if you have any questions about what is happening in your neighbourhood."

WINNIPEG - September sales of 1,046 were disappointing as they fell 12% in comparison to September 2017 and were off 9% from September’s 5-year average of 1,156 sales. On the other hand, new listings were up 6% and inventory of 5,134 listings grew by 11% over the same time last year.

Year-to-date sales activity shows sales of 10,264 are down 7% over the same period in 2017 while dollar volume has decreased 5% to $3.0 billion. Listings entered on the MLS® at the end of September are 19,771, up less than 2% from 2017.

If you look back before 2016 and 2017, the best years ever on record where sales after nine months were right around 11,000, year-to-date sales are very much in line with 2015 and 2014 and much closer to 2013 in total sales.

“Winnipeg’s resilient market is being tested this year in light of newly tightened federal mortgage regulations and it is preventing a number of prospective buyers from entering our market,” said Chris Dudeck, president of WinnipegREALTORS®. He added, “ The lack of new entrants to a housing market compounds matters further as the cascade effect of more sales occurring further up the real estate ladder is muted due to sellers unable to move on with their plans to buy a home if theirs does not sell.”

We also need to keep things in perspective how Winnipeg and the outlying metropolitan region housing market is performing relative to many other housing markets across the country. At a Canadian Real Estate Association national conference held this month, delegates were told 50 local markets are down more than 10% and 75 out of 101 markets are experiencing declining sales activity in comparison to year-to-date sales in 2017.

“As always, both buyers and sellers need to consult with their REALTOR to develop a strategy to navigate our current market conditions,” said Dudeck.

In September there were 5 million dollar plus single family home sales with one selling for $2 million. The lowest sales price was $44,500. For condominiums, one unit sold for close to $1 million at $964, 950 while the lowest one went for $66,500.

The average days to sell a residential-detached or single family home was 32 days while for condominiums it was a week longer at 39 days.

A real positive for the Manitoba economy going into the last three months of the year is the recently signed United States-Mexico-Canada Agreement. It should bring more certainty and economic stability to what was concerning for many Manitoba businesses which rely on exporting their goods and products south of the border.

One of the most important components you need to take into account when selling a home is strategy”, said Marina R. James, CEO of WinnipegREALTORS®. “Your REALTOR® knows strategy and will help you navigate through complex issues from start to finish.”

WINNIPEG - August sales of 1,274 are down 1% from August 2017 and up 1% over the 5-year average. Dollar volume of $375 million in August was down less than 1% from August 2017. Inventory of 5,163 MLS® listings at the end of August is up 7% over 2017.

Year-to-date sales of 9,218 are off 6% from the same period last year while year-to-date dollar volume of $2.73 billion is down 4% from 2017. Total listings of 17,619 have been entered on the MLS® this year and are slightly ahead of 2017. Where the difference is greater between the two years is in how many of these listings have been sold. There have been 52% sold this year compared to 56% in 2017.

“We have said all along this year that we are comparing our sales activity to one of our best years on record so we have every reason to remain optimistic about our market this year,” said Chris Dudeck, president of WinnipegREALTORS®. “As shown last month, Winnipeg remains a stable and resilient market with a real upside in terms of its affordability.”

Speaking of affordability, a September 4th release by the National Bank of Canada of their Housing Affordability Monitor shows Winnipeg and local buyers in particular remain in a very favourable position, especially in comparison to higher-priced housing markets in the country.

The Monitor examines the required mortgage payment on a median-priced home as a percentage of median income for a 5-year term with a 25-year amortization period. Income to buy a representative Winnipeg home of $318,610 is $56,989 while for a representative condo priced at $229,426 the household income needed is $41,037. Saving for the down payment is 28 months for a home and 20 for a condo.

In comparison, Victoria requires 121 months of saving for a home down payment and 48 for a condo based on their much higher median prices. You need an income of $151,611 to buy the $847,619 median-priced home.

Reinforcing the Winnipeg Metropolitan Region market’s housing affordability in August is the fact nearly 50% of all residential-detached sales were under $300,000 with another 17% selling from $300,000 to $349,999. 78% of all condo sales in August were under $300,000.

While the majority of sales activity occurred in more affordable price ranges, this is not to say the upper end of the residential-detached market did not fare well in August compared to August 2017. There were 81 sales of $500,000 and above (6 sold for over $1 million), a 16% increase over last August.

Going into September buyers should also be happy to know the Bank of Canada decided to not increase its overnight rate of 1.5 % as some economists thought possible. The next date for a potential rate increase is October 24, 2018.

“Buyers are in a good position to begin their search in our local market as it has a healthy supply of affordable listings to choose from”, said Dudeck. “With summer vacation over and the children back in school there is no need to put off your buying intentions any longer.”

“REALTORS® are experts in knowing the local market and specific property types you may be interested in purchasing,” said Marina R. James, CEO of WinnipegREALTORS®. “They can offer you objective advice so you can make an informed decision on what best suits your needs.”

 WINNIPEG — July sales activity decreased 4% from July 2017 and was off only 2% from the 5-year average for this month. If you remove the exceptional record-setting month of July 2014 which was close to 1,500 sales, the 1,376 sales transacted this July are less than 1% behind the average sales activity for this month. July 2017 was the second best July on record at 1,438 sales.

The narrow range in percentage terms of sales activity between this year and the 5 –year average for all MLS® sales in July is also exemplified in the two closely followed property types of residential-detached and condominiums. The 1,006 residential-detached sales in July decreased 2% from the 5-year average of 1,030 sales while the 176 condominium sales are just short of the 5-year average of 180 sales.

“We need to keep perspective from month-to-month and even year-to-year that despite what appears sometimes as drop off in sales activity or elevated sales in other instances, our local market remains very stable and resilient to wide fluctuations,” said Chris Dudeck, president of WinnipegREALTORS®. “Our home sale prices as well show a high degree of consistency and this is in part attributable to an economy that is one of the most diversified and stable in Canada.”

One property type which did shine in July was single-attached. It is another affordable housing option for buyers to consider when making their purchasing decision. Single-attached sales in July were up 44% over July 2017 and have increased 3% over the first seven months of 2018 in comparison to the same period last year.

Both new listings being entered on the market in July and the inventory at the end of the month are up over 8%. There are 5,278 MLS® listings available for sale in August.

Year-to-date sales activity is down less than 7% from the same period last year with sales of 7,944 while dollar volume of nearly $2.4 billion is 5% off last year’s record-setting pace.

 Price range sales activity for residential-detached properties in July shows the $250,000 to $299,999 price range has the highest percentage of total sales at 19% with the next higher and lower price ranges of $300,000 to $349,999 and $200,000 to $249,999 placing second at 16% each. There is still a wide disparity in the highest and lowest price sales price at $1,665,000 and $38,500 respectively.

Condominium price range sales activity in July shows double-digit price range sales percentages in price ranges from $100,000 to $349,999. The most active price range remains the $150,000 to $199,999 at 29% however not far behind is the $200,000 to $249,999 one at 23%. The highest condo sale price in July was $964,950 with a condo unit selling for $99,000 at the other end of the price spectrum.

“It is evident from looking at the many price ranges, and the significant difference from the lowest to highest sales price, that there are considerable options to choose from with over 5,000 MLS® listings available,” said Dudeck. “The month of August has become one of the more active real estate months for sales, so we can expect many buyers to take advantage of what lies before them.”

An interesting milestone for Manitoba has been noted in the Manitoba Economic Highlights report released monthly by Manitoba Finance. It says that in 2017 the working age population (15-64) went over one million persons for the first time. This growing labour pool enables Manitoba business to draw from it to create more jobs which in turn drive housing purchases and significant economic spin-offs from them.

The latest 2017 Altus Group Report prepared for the Canadian Real Estate Association shows for every MLS® sale in Manitoba, $52,500 is generated in additional economic activity. Direct and indirect employment also results from the purchase and sale of MLS® listings.

WINNIPEG - June sales activity outperformed May this year and usually it is the other way around. This helps explain adjustments that are going on within the local market to account for more stringent mortgage qualifications based on higher interest rates and the federal stress test.

June sales of 1,547 decreased 5% over June 2017 and 1% over the 5-year average for this month.  Listing activity for June increased 1% over the same month last year while the current inventory of 5,206 at month end was up 6%.

June dollar volume of $473 million is down 3% over June 2017 and ahead of all other previous months of June including the best June on record in 2016 of 1,638 sales. 

Year-to-date sales activity for the first six months is down 7% in comparison to the same period in 2017 and 2016 but off only 2% from the 5-year average.  Year-to- date dollar volume of close to $2 billion dipped 2% from the same period last year and 1% from the record- setting year of 2016.

“There is no question the federal stress test is suppressing our local market this year,” said Chris Dudeck, president of WinnipegREALTORS®. “However the impact is concentrated far more on the first-time buyers’ market and some buyers looking to move up and purchase their second property.”

In June alone, residential-detached sales under $300,000 decreased 19% over June 2017 while sales over $300,000 showed a 4% gain.

The same can be said for condominiums where very active sales areas like Osborne Village are seeing a noticeable drop in sales for the first six months this year compared to the same period in 2017.

Another indicator of less sales activity in the first half of this year is when you observe the percentage of listings entered on the market that have been sold. Residential-detached listings had a drop in percentage of listings sold from 61% to 56% while condominiums  has gone from 44% of listings sold in 2017 to 40% this year.

As for the properties which are selling this year, average days to sell is slightly better with the average days to sell a residential-detached property at 27 days instead of 28 in 2017. Similarly, the average days to sell a condo is one day quicker in 2018 at 42 days.

There are some clear differences however between residential-detached and condominiums at the half-way point this year. They include listings selling for above list price, the average year-to-date sales price and supply of listings available for sale.

The supply of condo listings relative to monthly demand is over five and one-half months whereas residential-detached is less than two and one-half months.

The number of residential-detached listings selling for above list price for the first six months is 25% while for condominiums it is 9%. The average year-to-date residential –detached sales price is $325,314, a 2% increase over the same period in 2017. For condominiums, its year-to-date average sales price is $240,873, a decrease of less than 1% in comparison to 2017.

Speaking of average sale prices, the chart below shows how the various MLS® zones within Winnipeg and the rural one outside the city are doing this year in comparison to 2017.

WINNIPEG - May sales were down from the best May and month on record in 2017 when close to 1,700 transactions were processed on WinnipegREALTORS® MLS®.  The 1,510 sales recorded in May 2018 decreased 11% from the same month last year and are down 4% from May’s 5-year average sales numbers and 1% from the 10-year average. Dollar volume of $458.4 million decreased 8% from May 2017.

New listings coming on the market in May decreased less than 2% while inventory at the end of the month increased 3% to 5,103 listings. When broken down into the two main property types of residential-detached and condominiums, inventory sits at 2,750 and 973 respectively. If no new listings were to come on the market this inventory would run out in roughly two and one-half months for residential-detached properties and  five months for condominiums.

“While you cannot hit home runs every year, there are some headwinds facing the market this May that were not in play last year, “said Chris Dudeck, president of WinnipegREALTORS®. “Higher lending rates in tandem with more stringent mortgage qualifying requirements are dampening demand even in our more affordable housing market.  There was also a pull-forward in the spring of 2017 of new residential-detached, condominiums, single-attached and town house property type sales to avoid paying City of Winnipeg impact fees.”

Year-to-date sales of 5,021 are down less than 8% from the two busiest years on record in 2016 and 2017 but slightly ahead of the previous three years from 2013 to 2015. Dollar volume of $1.488 billion is 6% off last year’s $1.58 billion total.

Despite some slowdown in market activity in May and year-to-date, there are positive indicators to report on in May.

Average days to sell in May for residential-detached and condominiums properties were less than four and five weeks respectively. Sales of homes in the $300,000 to $349,999 price range were particularly fast-paced with average days to sell of only 16 days. Condominiums, predominantly new units, sold on average in 17 days in the $350,000 to $399,999 price range.

The average sales price in May in comparison to May 2017 was up modestly too for both residential-detached and condominiums.

An indicator of demand outstripping supply for residential-detached sales for certain MLS® areas was the number of homes selling for above list price reached 28%, a 2 percentage point increase from May 2017.

This reality is borne out by a number of neighbourhoods dispersed throughout Winnipeg which had sales numbers exceeding the number of listings remaining for sale at the end of the month. The same situation does not exist for condominiums with just 9% of condominiums in May selling for above list price. There is a healthy supply of condominium listings available to choose from throughout the Winnipeg Metropolitan Region.

The overall absorption rate for MLS® listings going into June is less than 3 and one-half months however one area to watch for is the build-up in condominium inventory. Condominium inventory is up 10% from last year at close to 1,000 listings.

“Given how there has been more time for both mortgage lenders and buyers to adjust to the new mortgage rule requirements including an modest increase in the Bank of Canada’s five-year benchmark rate, I am hopeful June may be a catch up month and will usher in improved performance in sales activity,” said Dudeck. “It would not surprise me to see June edge out May in sales this year.”

 “ A professional REALTOR® is who you should be calling to find out what is your best recourse in terms of what you need to do in navigating our current real estate market”, said Marina R. James, CEO of WinnipegREALTORS®.

WINNIPEG  -  April sales began to take off like our Winnipeg Jets.  Sales of 1,283 were more spring-like in numbers as only down 1% from last April and up nearly 2% over the 10-year average for this month.  New listings of 2,621 in April increased 7% from the same month last year while the existing inventory at month end of 4,550 was up nearly 4% over 2017.

MLS® dollar volume of nearly $390 million just edged out last year’s total. Year-to-date dollar volume climbed over $1 billion and is less than 5% off last year’s first four month total dollar volume. Year-to-date sales of 3,511 are down 6% from the same period in 2017.

April’s average residential-detached sales price was just under $330,000, a modest increase over April 2017. Helping elevate this average sales price was a home in East Fort Garry which sold above list price for $2.6 million and three other million dollar plus home sales in the Waverley West MLS® area.

The April condominium average sales price of $236,027 was down slightly from April 2017. Condo sales of 165 were ahead of last April’s total by 5%. The highest percentage increase of all MLS® property type sales in April was duplexes at 50%.

“Clearly market activity picked up in April to show once again how resilient the Winnipeg Metropolitan Region can be in the face of some adversity with new mortgage qualification rules in place as well as higher mortgage rates,” said Chris Dudeck, president of WinnipegREALTORS®. “A real enduring strength of our local market in the last few years has been its affordable prices with different options to choose from given overall balanced market conditions.”

A true test of this year’s return to more seasonal sales activity will be this month as last May had the highest monthly sales ever at just under 1,700 sales. Can it be a jet-fuelled month? Only time will tell but there are positive signs as a result of solid market metrics in April.

While there are more listings on the market going into May than there were last year this does not mean they are all evenly distributed amongst varying property types and areas within the Winnipeg Metropolitan Region.  Residential-detached listings of nearly 2,400 lean towards tighter market conditions based on expected strong sales the next few months and condominium listings of almost 900 show a more elevated inventory and more opportunities for buyers to with longer days on market to sell and greater selection available.

One clear difference too between these main property types is the percentage of listings selling for above list price in April. 28% of residential-detached properties sold for above list price compared to 9% for condominiums.

As the market  gets busy at this time of year you need to be contacting a REALTOR® to make sure you are well positioned if selling your property, and if buying, prequalified and ready to make an offer if the right property is listed in your preferred area,” said Marina James, CEO of WinnipegREALTORS®

WININIPEG – Sales in March resulted in a slower first quarter especially in comparison to the two best years on record in 2016 and 2017.  Sales of 2,228 are down over 8% from the first 3 months in 2017, and 4% over the 10-year average.  March sales of 974 decreased 12% from March 2017, and 5% over the 10-year average. March new listings at just under 2,100 were down to a lesser extent at 5%.

Current inventory of MLS® listings going into the second quarter is almost identical to last year. It sits around 3,900 listings with a modest percentage gain of residential-detached listings available while condominium listings slipped slightly.

It is fair to say while market fundamentals are firmly in place in the local market, new mortgage rules combined with higher mortgage rates in the last year have made it more difficult for some buyers to purchase their desired property. This not only applies to first-time buyers, but to existing home owners who instead of listing their property have decided to stay put as the tougher qualifying environment keeps them from moving ahead with a new purchase.

As in other real estate markets across the country, strong year-end sales within the Winnipeg Metropolitan Region in November and December in advance of the January 1, 2018 new stress test on uninsured mortgages would have had a pull-forward effect on sales happening this first quarter.

Of course you can never discount mother- nature either as March has been unseasonably cold and did nothing to motivate buyers to kick start the spring market.

“The second quarter is by far the busiest quarter of the year and it will truly tell the story if the slow first quarter start is just that,” said Chris Dudeck, president of WinnipegREALTORS®.  “We need to see if April regains some of the market momentum lost in the first quarter.”

Further analysis of both residential-detached and condominium properties provide a few observations.

While condominiums saw sales drop 14% in the first quarter, they are only 1% below the 10-year average.  The average sales price of $240,740 was less than 2% below the more active first quarter of 2017.

Residential-detached, the most expensive property type class and one most vulnerable to recent policy-related moves to slow down the housing market, experienced an 11% decline over  the 2017 first quarter, and a 7% drop off in same period sales over the 10-year average.  The average sales price was higher however at $327,959 compared to $319,549, up nearly 3%, and the average days to sell was 29 versus 27 in 2017.

It is also worth noting the ratio of total sales price, to total list price, edged up to 99% in the month of March.  This high percentage ratio can be attributed in part to a number of MLS® areas seeing whatever listings they had available sell quickly.

“ The majority of MLS® areas which experienced the biggest decrease in residential-detached sales compared to last year were in the more affordable price ranges and often had a corresponding drop off in available listings,” said Dudeck.

This same pattern was less apparent with condominiums which had more of an issue with less listings being sold compared to last year.

“As this first quarter demonstrates, changes occur within property types, price ranges and areas throughout the market region, “said Marina James, CEO of WinnipegREALTORS®.  You need to be calling a REALTOR® to advise you on your best course of action.”

WINNIPEG - It was an off month for WinnipegREALTORS® as February sales of 683 declined 11% from the same month last year and 10% over the 10-year average for February.  Year-to-date sales of 1,250 are 5% off the pace set in 2017 when there were 1,327 sales. Year-to-date dollar volume worth $352 million in real estate transactions is also down 5% from the same period last year.

When comparing MLS® listings to last year, overall supply is not the issue as the inventory at the end of February of just under 3,400 is equivalent to 2017. New listings coming on the market for residential-detached and condominium properties in February were not markedly different either from February 2017.

Simply put, buyers were less active than last year.  Sales fell short in the two main property types – residential-detached and condominiums. While condominium sales decreased 16%, the 102 sales transacted are above the 10-year average by 8%. Residential-detached sales, on the other hand, were below the 10-year average by 10% and 11% in comparison to February 2017.

There is no one reason why residential-detached sales saw a drop off in activity.  One MLS® area in particular was down markedly from 2017 because of a lack of listings, where other MLS® areas experienced a noticeable drop off in sales compared to available listings.

As for the distribution of sales throughout the entire residential-detached price range spectrum, the tilt in percentage of sales activity favoured the higher price ranges above $300,000. This was even more accentuated for condominium sales activity in higher price ranges. The usually dominant $150,000 to $199,999 price range dropped in total sales percentage from 36% in 2017 to 19% this year.

“A disappointing sales result but still too early in year to draw any firm conclusions,” said WinnipegREALTORS® president Chris Dudeck. “Based on an increase in higher end price range sales activity in relation to lower price ranges compared to last February the new stress test on insured mortgages (came into effect on January 1, 2018)  does not appear to be a leading cause of slower sales activity.”

It is also worth noting, residential-detached properties which did sell in February, actually sold faster in 2018 than 2017. The average days to sell was 32 days, 2 days quicker than February 2017, while average days to sell a condo was the same as February 2017 at 45 days.

One thing that is clear, with tougher qualifying requirements for both insured and uninsured mortgages this year, and higher mortgage rates, buyers should be proactive in getting pre-approvals so that when they are ready to purchase a home they are qualified to buy.

This week the Bank of Canada held its benchmark interest rate at 1.25 per cent, though one more hike is expected this year. Lingering trade issues including concerns over NAFTA may well push back another rate hike until later in 2018. The Bank of Canada is also assessing the housing market as part of their rate-tightening plan given softer sales activity this year.

“All markets are local and activity within the various property types behaves differently depending on the price range and area,” said Marina R. James, CEO of WinnipegREALTORS®. “You are always best advised to contact a professional REALTOR® to determine a suitable course of action for your own needs.”

WINNIPEG - It is often said that Winnipeg’s real estate market is steady and stable. January exemplified this description by delivering a repeat performance from January 2017. It was uncannily similar in total MLS® sales, active and current listings, and dollar volume.

MLS® sales of 571 and dollar volume of $156 million are both up less than 2% over January 2017. The inventory of 3,096 listings is almost identical to 2017 and current listings entered onto MLS® in January were just under 1,500 in comparison to 1,502 last year.

“Too early to tell how much impact the new stress test effective January 1, 2018 on uninsured mortgages will have on the local market,” said Chris Dudeck, president of WinnipegREALTORS®.  “And we should not forget that the stress test on insured mortgages in late 2016 will still be a factor in 2018.”

When you look closely at the MLS® property types a few differences emerge.  The inclement weather may in fact have something to do with slower rural sales activity in residential-detached sales as they were down 12% in comparison to January 2017. Condominiums which had a strong start in 2017 were not quite as robust this year, though in line with the 5-year average of 90 sales.

Other property types made up for slower residential-detached and condo sales with some significant double-digit increases over January 2017. Of note were duplex sales increasing 44%, single-attached sales up 35%, and vacant land transactions rising 53%.

“This is the first full calendar year where City of Winnipeg impact fees apply so it will be interesting to watch and compare if vacant land sales continue to increase as the majority of WinnipegREALTORS® vacant land inventory is outside the city of Winnipeg in the rural municipalities,” said Dudeck. ““He added only 3 of the 26 vacant land sales were in Winnipeg.”

“REALTORS® know market conditions as they see what is transpiring every day in the market” said Marina R. James, CEO of WinnipegREALTORS®. “You need to be contacting a REALTOR®. They can assist your own individual needs based on the property type you own or may be interested in buying.”

WINNIPEG - A solid result in December of 635 MLS® unit sales and a dollar volume over $179 million capped off a successful year in 2017.

Actual percentage differences in comparison to December 2016 were relatively modest but positive with sales up 3%, dollar volume rising 7% and listings increasing 8%. All MLS® property types performed exceptionally well in December with only residential-detached experiencing a drop of 8% in sales. A total MLS® inventory of 2,851 listings is available for sale as 2018 begins. 

2017 finished up strong with a total of 13,525 sales, down less than 1% from the record year of 2016 where 13,632 sales were transacted. A new annual dollar volume record was set in 2017 with $3.92 billion worth of MLS® sales – an increase of close to 4% in comparison to 2016.

When asked for his insight on 2017, outgoing WinnipegREALTORS® president Blair Sonnichsen said, “Considering tougher mortgage qualification requirements were in effect for insured mortgages, two Bank of Canada interest rate increases were brought in, and impact fees were imposed by the City of Winnipeg on new residential development, we are particularly pleased with our MLS® market performance. This indicates to me our REALTORS® worked diligently with mortgage brokers and financial institutions to overcome any challenges clients may have encountered in this regard. REALTORS® as a result were able to conclude nearly as many sales as they did in our record year of 2016.”

A byproduct of 2017 which has been noted before, is the many affordable options available to buyers in the WinnipegREALTORS® market region. It became very apparent early on in 2017 that buyers were making adjustments within certain property type categories or between them to attain their dream of acquiring a place to call home.

“Within the many neighbourhoods of Winnipeg or the outlying rural municipalities in the capital region, buyers made informed choices and took advantage of one of the most affordable residential real estate markets in the country, “said Sonnichsen.

2017 was a year where stronger move up market activity helped offset some drop off in the first-time buyer price ranges for single family homes. One clear example of higher end sales gaining ground over 2016 was the fact there were 45 million dollar plus homes sold in comparison to 30 in 2016. Even condominiums saw a spike in million dollar plus sales with 6 compared to none in 2016.

More move up sales activity in 2017 was a contributing factor in lifting the annual average sale price upward for both residential-detached and condominium property types. The residential-detached average sale price went from $302,726 in 2016 to $315,720 in 2017. The condominium average sale price rose over $9,000 to $244,687 in 2017.

Residential-detached average sale prices for the MLS® zones of Winnipeg and rural municipalities outside the city show price gains over 2016 with only Winnipeg North decreasing slightly.The southwest zone eclipsed an average sale price of $400,000 in 2017 for the first time. When you have over 300 sales in one MLS® area (Waverley West) in this zone having an average sale price of $546,664 you know it will skew the entire zone’s average sale price higher. This MLS® zone also includes Tuxedo which had an average sale price of $853,378.

Speaking of residential-detached sales in 2017, despite the sales gains noted in higher price ranges, over half of all sales still occur under $300,000 with the busiest price range from $250,000 to $299,999 commanding a total market share of 21%. It is worth noting the $300,000 to $349,999 price range for the first time in 2017 supplanted the $200,000 to $249,999 price range as the second most active price range. The average days on market to sell a home in 2017 was 29 days, 2 days quicker than 2016.

The highest sale price for homes was $2,460,000 with the lowest selling for only $10,000.The most active price range for condominium sales in 2017 was from $150,000 to $199,999 at 28% of total sales. Another 35% of condo sales occurred fairly evenly in the next two higher price ranges from $200,000 to $249,999 and $250,000 to $299,999. The average days on market to sell a condo in 2017 was 43 days, 4 days quicker than 2016.

The highest sale price for condominiums was $1,575,000 while the lowest was $42,000.Some other property types did not take a backseat to residential-detached and condominiums in 2017. In fact they outperformed them in terms of sales increases over 2016.

Single-attached properties had a double-digit increase of 12% to finish at 537 sales and a 4% market share. Town houses showed the largest sales increase of them all at 19% while commercial jumped 8%. Residential-detached sales were actually down 2% from 2016 and condominiums which started off the year with high monthly percentage gains over 2016 finished up with an increase under 3%. Condominium sales were only 9 sales short of the annual record set in 2014 when 1,798 sales were transacted on WinnipegREALTORS®’ MLS®.

 “What these different property type outcomes illustrate is how important it is to consult with a REALTOR® - your local market expert – on what is happening with respect to your specific property type and how you need to navigate the market to get the best results,” said Marina R. James, CEO of WinnipegREALTORS®.

WinnipegREALTORS® will get into more detail with analysis and explanation of what happened in 2017 when it hosts its 12th Annual Forecast breakfast on February 7, 2018. It will also look ahead to what it expects to happen in 2018 with new federal mortgage lending guidelines, the potential of more Bank of Canada interest rate increases and municipal elections.

WINNIPEG - If you are going to duplicate a month’s sales activity, do it when it is a good one and that was the case in November. MLS®sales of 878 units in November were one sale higher than November 2016 and 4% above the 10-year average for this month. Only once in 2015 did November sales edge over 900, so not a big difference in sales.

 

A solid performance in November and year-to-date sales of 12,890 ensures 2017 will be no worse than second highest on record. 2016 was the best year ever with over 13,600 sales.

 

“A good rebound in November from a slower October sets up a terrific year end result,” said Blair Sonnichsen, president of WinnipegREALTORS®. “We are only down 1% in sales from our best year ever in 2016 and will establish a new dollar volume record of close to $4 billion.”

 

A highlight in November which has been observed throughout the year is the strength of the upper end market. There were 50 residential-detached sales of over $500,000 compared to 34 last November and 4 sold for over $1 million with one closing at $2 million. One condominium sold for $1,575,000.

 

As much as the two MLS® property types of residential-detached and condominium represent nearly 86% of total sales, the single-attached property type has emerged this year as a real solid performer with over 500 sales and 4% of total MLS® market share. In November unit sales were up 22% and year-to-date sales are ahead by 11%.

Balanced market conditions still prevail overall with over 4 months of listings available if there were no new listings added on to the MLS® system.

 

Condominium supply remains elevated in comparison to residential-detached. Based on slower condo sales in the upcoming months over 700 active condo listings equates to at least 7 months of supply. This difference is really borne out when you see in November 32% or nearly one out of every three active residential-detached listings sold to just 15% of the entire condominium inventory turning over.

MLS® area neighbourhoods such as Riverview, Crescentwood, River Heights, Wolseley, Southdale, Fort Garry, Linden Woods, Garden Grove and Harbourview South show depleted inventories in relation to residential-detached sales this year.

 

“Depending on the property type and area of the city or capital region you wish to live in, you need to be calling a REALTOR® to provide their knowledge and expertise on what your best course of action is based on current market conditions, especially due to financing,” said Marina R. James, CEO of WinnipegREALTORS®. “All real estate markets are local and vary within according to different market indicators.”

 

Commencing January 1, 2018, a new stress test comes into effect on Canadians making down payments of over 20 per cent and therefore not requiring mortgage insurance. It applies to all federally regulated financial institutions and requires the applicant to qualify for mortgage payments based on the greater of either the Bank of Canada’s five-year benchmark rate or their contract mortgage rate plus two percentage points.

 

Backing up WinnipegREALTORS® claim that it has one of the most affordable major real estate markets in the country is the percentage of sales it has under $300,000. In November 59% of residential-detached sales and 77% of condo sales were under $300,000. The busiest condominium price range at 26% of total sales was from $150,000 to $199,999.

 

Helping WinnipegREALTORS® achieve another very successful year of MLS® sales is Manitoba’s well diversified and stable economy,” said Peter Squire, Vice President of External Relations and Market Intelligence.

He noted the unemployment rate is averaging 5.4%, second lowest among provinces and employment has increased by nearly 10,000 in the first 11 months of 2017. Average weekly earnings increases of 2.4% as of September 2017 are also second among provinces.

 

The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by CREA and identify real estate professionals who are members of CREA.

WINNIPEG - October sales decreased 10% from October 2016 and were off 4% from the 10-year October average. The drop in sales activity was largely predominant in the residential-detached and condominium property types selling for under $300,000.

 

The sales decrease in part, was the result of being up against increased sales activity in early October 2016 because home buyers then wanted to maximize their buying power before the October 17th stress test came into effect on insured mortgages. The new qualification requirement meant applicants had to qualify for the five- year fixed term Bank of Canada rate of 4.64 per cent.

 

October sales of 1,023 pushed year-to-date sales over 12,000 – only the second time this has happened and just 1% off last year’s record-setting pace of over 12,100 sales. Year-to-date dollar volume is the highest it has ever been at nearly $3.5 billion, up over 3% from 2016. Based on slower sales and dollar volume activity in the last two months of the year dollar volume, will not reach the $4 billion benchmark level but another annual dollar volume record will be set.

 

“October sales results clearly showed how government intervention in to the real estate market has affected it”, said Blair Sonnichsen, president of WinnipegREALTORS®. “The first-time buyer market for residential-detached properties has been softer this year and conversely more affordable property types such as single attached and townhouses have performed better.”

 

Both single-attached and townhouse sales this year are well ahead of 2016 with percentage increases of 10% and 23% respectively. Residential-detached sales are down 2% for the first 10 months.

 

One offsetting factor to mitigate a higher percentage decline in residential-detached sales in 2017 compared to last year, as a result of tougher mortgage qualification requirements, is a stronger move-up market.

 

Two examples back this point up. In October the southwest MLS® zone which had an average residential-detached sale price of over $400,000 saw sales increase this October while all the other more affordably priced MLS® zones ,including the rural MLS® areas outside Winnipeg, were either seeing fewer sales or flat in residential-detached sales activity.

 

Another example of stronger move- up activity this year is the significant difference in million dollar plus sales compared to the previous three years. For the first ten months there have been 45 sales in total, 40 residential-detached sales and 5 condominium sales. This compares to a total of 27 in 2016 and 20 in both 2015 and 2014.

 

“Our market may experience move-up sales activity than normal until the end of 2017 given that The Office of the Superintendent of Financial Institutions (OSFI) just approved a new stress test on federally regulated mortgage lenders with respect to insured mortgages commencing January 1, 2018,” Sonnichsen said. “Similar to last year’s higher qualification requirement on insured mortgages which has heavily impacted first-time buyers, this new guideline will affect move-up buyers more and will limit their ability to qualify for higher-priced homes. They must meet the minimum qualifying rate for an uninsured mortgage which is the higher of either the five-year Bank of Canada rate or one that is 2 percentage points higher than their contractual mortgage rate.”

 

Helping some Manitobans feel confident about advancing their buying decision now before this new stress test kicks in is the recent good news of job gains for Manitoba. Statistics Canada reported the Manitoba economy added 4,000 new jobs in October and as a result had its unemployment rate drop to 5.2 per cent, second only to British Columbia at 4.9 per cent.

 

Further, October 2017 MLS® sales activity reported prevalent condominium sales in the under $200,000 price range. These sales represented 44% of total condo sales. In comparison sales under $200,000 for the residential-detached property type were 16%.

 

“Whatever price range you are looking to buy in, you need to be calling a REALTOR®- a market expert who will help you navigate the ever changing real estate environment and real estate financing” said Marina R. James, CEO of WinnipegREALTORS®.

 

Since 1903, WinnipegREALTORS® has assisted its members in achieving high levels of excellence in organized real estate by providing superior tools and services that enhance and build a vibrant real estate industry. Representing over 1,900 REALTORS® and other industry related professions active in the Winnipeg metropolitan area, WinnipegREALTORS® promotes the value of a REALTOR® and organized real estate. WinnipegREALTORS® provides its members with essential market information, professional development sessions, networking opportunities, marketing products, an effective industry voice and strong leadership to further their professional success.