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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.
The chart below shows how each of the geographic areas within Winnipeg performed with respect to their average home sales price as well as the area representing rural municipalities. All areas saw slight increases over 2017 with the exception of the southeast area where its price equaled last year’s result.
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.
“I am proud of how our REALTOR® members worked so hard this past year to meet both buyer and seller expectations given that were more financing issues to overcome.” said Marina R. James, CEO of WinnipegREALTORS®. REALTORS® operate in an ever-changing real estate industry and continually update their knowledge so their clients are supported through the buying and selling process.”
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October strong start to fourth quarter

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

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

“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.”

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The trademarks MLS®, Multiple Listing Service® and the associated logos identify professional services rendered by REALTOR® members of CREA to effect the purchase, sale and lease of real estate as part of a cooperative selling system.
MLS®, REALTOR®, and the associated logos are trademarks of The Canadian Real Estate Association.