Winnipeg Real Estate Market Statistics
Winnipeg Real Estate Market Statistics
Majority of Homes Sell For Over $200,000
WINNIPEG - Besides resulting once again in another month where dollar volume sets a new record for the month as it was up 9% over the previous best dollar volume February in 2008, a significant development this month is a clear shift in overall residential-detached sales activity to price ranges over $200,000. Leading the way is the $200,000 to $249,999 price range where one out of every four homes sold in this category. Last February the same percentage of activity happened in the $150,000 to $199,999 price range. Overall, 56% of homes sold in February went for above $200,000. The under $100,000 sales dipped to only 8% in comparison to 11% in February 2009.
Similarly, condominium sales activity went upward too in comparison to February 2009 but the only difference from residential-detached was it shifted to more activity in the $150,000 to $199,999 price range from the $100,000 to $149,999 one. More than one out of three condos sold in the $150,000 to $199,999 price range where it was more like one out of five last year for the same month.
If you wanted to use an Olympic Winter Games analogy, Winnipeggers are reaching for higher levels in terms of house and condo values where Canadian athletes were going for gold. The current low interest environment is the biggest enabler in this regard as it helps keep affordability within the realm of many buyers.
Another clear difference this year compared to last is the number of home sales in February that went for over list price doubled from 22 to 44%. Another 44% however sold for under list price.
February MLS® unit sales of 712 and a dollar volume of over $150 million would be considered one of WinnipegREALTORS®’ better February’s due largely to the record dollar volume for the month of February. The four previous years to 2009 had sales approaching 800 so there have been better sales results. February MLS® unit sales were up 8% (712/660) while dollar volume rose 19% ($150.6 million/ $126.6 million) in comparison to the same month last year.
Year-to-date MLS® unit sales are up 1% (1,199/1,184) while dollar volume has increased 13% ($252.8 million/ $223.1 million) in comparison to the same period a year ago.
“February market activity shows a real improvement over January and is more in line with what our expectations are for this month,” said Claude Davis, president of WinnipegREALTORS®. “One similar carryover from January is the tight inventory situation in a number of Winnipeg neighbourhoods. It shows by virtue of the fact houses selling this month in these desirable MLS® areas were only on the market two weeks or less whereas the overall Winnipeg and surrounding rural municipalities’ average was 29 days.”
Davis added, “We expect to see a continuation of strong market activity with more listings coming on stream as move up buyers will want to take advantage of affordable mortgage rates before interest rates rise later this year.”
One huge beneficiary of the trend to higher sale prices over $200,000 is the provincial government. For any amount over $200,000 the highest land transfer tax rate in the country applies. So, at 2%, it means for every $50,000 increment over $200,000, the province collects an additional $1,000 in land transfer taxes from the home buyer. A $300,000 home creates a $2,000 windfall for the province based just on the 2% tax rate and another $1,650 for the amount below $200,000.
“You might say bracket creep is alive and well in Manitoba since there have never been any adjustments made to reflect higher sales prices since the inception of this tax in 1987,” said Davis. “There actually has been one change and that was made in 2004 when the provincial government raised the highest tax rate at the time from 1.5 to 2%.”
An unfortunate result of this land transfer tax is it has impeded the first time buyer from getting into the market to the same extent as has happened elsewhere in the country where there is no land transfer tax or a first time buyer exemption.
For residential-detached sales, the most active price ranges were the $200,000 to $249,999 and the $150,000 to $199,999 representing 25% and 19% respectively of total sales. The average days on market of sales of residential-detached listings in February was 29 days, 3 days faster than both January 2010 and February 2009.
34% of condominiums sold were from $150,000 to $199,999 while another 28% sold in the next lower price range of $100,000 to $149,999. The average days on market for condominiums was the same as residential-detached at 29 days, a marked improvement over last month’s days on market of 47 days and one day quicker than February 2009.
Established in 1903, WinnipegREALTORS® is a professional association representing over 1,500 real estate brokers, salespeople, appraisers, and financial members active in the Greater Winnipeg Area real estate market. Its REALTOR® members adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service® (MLS®) designed exclusively for REALTORS®. WinnipegREALTORS® serves its members by promoting the benefits of an organized real estate profession. REALTOR®, MLS® and Multiple Listing Service® are trademarks owned and controlled by the Canadian Real Estate Association and are used under licence.
Winnipeg Real Estate Market Statistics, Winnipge Real Estate News
WINNIPEG - July 2009 not only set a new dollar month record for this month but even edged out May 2009. This happens very rarely. Although it is worth mentioning the last time it happened was in 1997 when the flood of the century impacted May sales so the 2009 flood likely had some impact as well. July 2009 sales were only 2 per cent off the best July ever in 2008 and are well ahead of previous months of July where sales have typically been between 1,000 and 1,200. This year they approached 1,400 and that is no small feat.
Nearly one out of three home sales went for above list price and another 11% sold at list price.
Sellers market conditions were more the norm as residential-detached and condominium listings in particular are much more in line with where they were last year at this time than earlier in the year where inventory was notably higher than the same period a year ago.
The $276 million in July MLS® sales activity leaves no doubt WinnipegREALTORS® will have its third consecutive year of over $2 billion worth of MLS® sales with five months to go. Year-to-date MLS® sales activity already totals $1.5 billion.
July MLS® unit sales were down 2% (1,373/1,407) while dollar volume was up 3% ($276.6 million/$269 million) when compared to the same month a year ago. Year-to-date MLS® sales have decreased 9% (7,469/8,224) while dollar volume is off less than 6% ($1.51 billion/ $1.60 billion) in comparison to the same period last year. The number of MLS® listings entered on the MLS® this year is just shy of last year’s July end total of 11,448 listings.
“We have now had two really solid back to back months of MLS® sales and dollar volume activity,” said Deborah Goodfellow, president of WinnipegREALTORS®. “The only reason we are not talking about big percentage increases in sales similar to other Canadian markets now is we never experienced the same significant sales declines a year ago. While there is more news being reported on the Canadian economy recovering from a recession, Manitoba has been very resilient throughout this period and withstood any serious impact from an economic downturn.”
High consumer confidence coupled with good affordability in part due to favourable mortgage rates continues to create a sound resale housing market here. The extremely tight rental market is also pushing new immigrants and other Canadians moving back to Winnipeg into buying a home when they may opt to rent initially.
For residential-detached sales, the most active price ranges were the $150,000 to $199,999 and the $200,000 to $249,999 with 24% and 22% respectively of total sales. If you then include the next lowest price range of $100,000 to $149,999 and the next highest price range of $250,000 to $299,999 you capture 73% of all sales in the month of July. The highest sale price in July was $767,000 while the lowest sale price was $10,900. The average days on market for sales of MLS® residential-detached listings was 30 days, 5 days slower than last month and July 2008.
If you look at condominium sales activity, over 70% of the sales in July were under $200,000, with 42% happening between $100,000 to $149,999. The highest condominium sold for $460,000 while the lowest went for $32,000. The average days on market for a condominium sale was 33 days, 4 days slower than last month and 2 weeks off the quick pace set in 2008. Year-to-date condominium sales are actually up 8% over the same period last year.
Established in 1903, WinnipegREALTORS® is a professional association representing over 1,500 real estate brokers, salespeople, appraisers, and financial members active in the Greater Winnipeg Area real estate market. Its REALTOR® members adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service® (MLS®) designed exclusively for REALTORS®. WinnipegREALTORS® serves its members by promoting the benefits of an organized real estate profession. REALTOR®, MLS® and Multiple Listing Service® are trademarks owned and controlled by the Canadian Real Estate Association and are used under license.
Winnipeg Real Estate Market Statistics
June Sales Fall Just Short of 1,500
WINNIPEG - Home buyers responded in a big way to low interest rates and a good selection of affordable homes to make June 2009 the third best June on record for sales and the second highest for dollar volume. It is only eclipsed by the previous two record years where sales in June respectively were higher, but by less than 5 per cent. As for dollar volume, June 2009 is only the third time in WinnipegREALTORS® 106-year history where dollar volume for the month has exceeded $300 million. Only May 2008 and June 2008 are higher. Helping propel dollar volume to over $311 million this June were three million plus home sales.
While overall MLS® inventory remains up 22% at the end of June in comparison to the same time last year, conversions of listings to sales are improving as evident from a number of City of Winnipeg MLS® areas. The average days on market for the sale of residential-detached properties has decreased monthly with it only taking 25 days in June. Compare this statistic to over 40 days in January 2009 and not less than 30 days until last month where it was 27 days. It is also worth noting the REALTORS® Association of Edmonton which had its best June residential sales ever this year were pleased to announce their average days on market dropped to 49 days in June from 60 days or more earlier this year. This development in their words was an indication of ‘buyer enthusiasm’ so Winnipeg is doing extremely well at less than four weeks.
June MLS® unit sales were down less than 5% (1,490/1,562) while dollar volume decreased less than 2% ($311.2 million/$316.9 million) in comparison to the same month last year. Year-to-date MLS® sales have declined 10% (6,096/6,817) while dollar volume is off 7% ($1.24 billion/$1.34 billion) in comparison to the first half of 2008. The number of MLS® listings entered on the MLS® this year are up less than 2% at over 9,700 listings.
For residential-detached sales, the most active price ranges were the $150,000 to $199,999 at 26% and the $200.000 to $249,999 at 21%. If you combined these two price ranges with the next higher one, from $250,000 to $299,999, this represents 61% of all residential-detached sales in June. The average days on market for sales of MLS® residential-detached listings was 25 days, two days quicker than last month and six days off the pace set in June 2008.
“June 2009 resulted in one of Winnipeg’s best real estate months ever and that is in part due to consumers regaining their enthusiasm for Winnipeg real estate opportunities,” said Deborah Goodfellow, president of WinnipegREALTORS®. “Our house prices remain affordable especially in a low interest rate environment and with a better supply of listings than the last few years.”
One notable difference when comparing home sales for the fist six months this year to the same period in 2008 is a softer first time home buyer market. This is evident when you look at sales under $200,000 where first time buyers are most active. Sales are down 18 % in comparison to 2008 whereas when you examine sales over $200,000, they are only down 3% over last year.
One opportunity WinnipegREALTORS® strongly suggested to the provincial government earlier this year in its 2009 budget preparation was to seriously consider bringing in a first time home buyer exemption on the cash rich land transfer tax that is levied on all property purchases in Manitoba. First time buyers have trouble enough coming up with the necessary closing cost dollars without being encumbered by an unjustified provincial home buyer tax. In markets like Edmonton and Vancouver where they are seeing a resurgence in the first time home buyer market, there is no land transfer tax in Alberta and a complete first time home buyer land transfer tax exemption exists in B.C. for any purchase price up to $425,000. There is no land transfer tax in Saskatchewan.
“We will continue to urge the provincial government to modify the land transfer tax as it is a home buyer tax that generates revenue well in excess of anything that can be justified”, said Goodfellow.
Finally, it is interesting to observe that the over $500,000 home market is down substantially from last year with sales off nearly 30%. As part of WinnipegREALTORS® proposal to adjust the provincial land transfer tax, it suggested it should be capped at $500,000.
Established in 1903, WinnipegREALTORS® is a professional association representing over 1,500 real estate brokers, salespeople, appraisers, and financial members active in the Greater Winnipeg Area real estate market. Its REALTOR® members adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service® (MLS®) designed exclusively for REALTORS®. WinnipegREALTORS® serves its members by promoting the benefits of an organized real estate profession.
Winnipeg Real Estate Market Statistics
From the WinnipegREALTORS® Press Release:
MAY MLS® SALES OFF PEAK PERFORMANCE
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MLS® Sales and Dollar Volume Drop 13 %
WINNIPEG - Sales in May 2009 were more restrained than the last few years but that does not mean the MLS® market performed badly. It just indicates the market has come back down to earth and is more balanced compared to the heady run Winnipeg enjoyed over more recently in May. Going back to 2005, May kicked off a three year streak of best May’s ever and some of WinnipegREALTORS® best months on record. May 2007 is the only month where sales have eclipsed 1,600. May 2008 fell back under 1,600 with sales of 1,564 but is still tied with June 2008 for the second best MLS® sales month ever in WinnipegREALTORS® 106-year history.
May 2009 market activity still resulted in the fifth best May for sales and the third highest for dollar volume, only beaten out by the last two banner years where for the first time, WinnipegREALTORS® had year end dollar volumes of over $2 billion. With year-to-date dollar volume down just 9 % this year, there is every possibility 2009 could usher in a third consecutive $2 billion year but too early to tell for sure.
There are a few good indicators of how the MLS® market has come off boiling to simmer. In May 2008 57% of residential-detached properties sold for above list price where this May it was 37%. Condominium above list price sales was well off its 57% level achieved last year too. Reflective of less multiple offer activity and strong bidding wars is the fact the average residential-detached selling price in comparison to the average residential-detached listing price in the City of Winnipeg was up 1 per cent this year where 2008 it was ahead by over 6 per cent. The average days on market too have slipped back from less than three weeks in May 2008 to 27 days in 2009. Given the much improved housing inventory compared to last year and the less frenetic pace of the spring market this year, conversion of residential-detached listings to sales fell from an outstanding 80 per cent in May 2008 to only 53 per cent in May 2009.
May MLS® unit sales were down 13% (1,367/1,564) while dollar volume as well declined 13% ($278.3 million/$319.7 million) in comparison to the same month last year. Year-to-date MLS® unit sales are off 12% (4,606/5,253) while dollar volume has decreased 9% ($928.34 million/$1.02 billion) in comparison to 2008. MLS® listings entered on WinnipegREALTORS® predominant residential database are up 3% (7,624/7,426).
“These May results are nothing to be discouraged about as are more symptomatic of a market where sellers have to be more realistic about their price expectations while buyers are less inclined to jump at the first available opportunity to place an offer on a property,” said Deborah Goodfellow, president of WinnipegREALTORS®. “It is also a market that is quite varied in demand depending on the neighbourhood and price range of the homes you are in. The best advice I can give you is talk to your REALTOR® about your own situation whether you are buying or selling.”
“I should also add that we are seeing quite a divergence in the percentage increases or decreases this year in MLS® property type activity,” said Goodfellow. “For example, year- to-date home and condominium sales are at the opposite end of the same percentage. Homes are down 12 per cent while condominiums are up 12 per cent.”
Looking ahead to June WinnipegREALTORS® remains optimistic MLS® sales activity will remain solid given factors such as Manitoba’s favourable employment picture relative to the rest of the country. Statistics Canada just reported Manitoba tied with Saskatchewan as having the lowest unemployment rate in the country at 4.9 per cent. Winnipeg actually saw its unemployment rate drop in May to 4.8 per cent from 4.9 per cent in April. No wonder a Probe Research survey in March showed the vast majority of Winnipeggers are positive about the future of the local economy. Housing affordability remains attractive too with mortgage rates being at historical lows and house prices stabilizing due to a more balanced market and less pent up demand.
For residential detached sales, the most active price ranges were $200,000 to $249,999 and the $150,000 to $199,999. They represented respectively 23% and 22% of the total sales activity. The under $100,000 market is shrinking is it represented only 8% this month. The average days on market for sales of MLS® residential detached listings was 27 days, 4 days quicker than last month and a week off the fast pace set in May 2008.
Established in 1903, WinnipegREALTORS® is a professional association representing over 1,500 real estate brokers, salespeople, appraisers, and financial members active in the Greater Winnipeg Area real estate market. Its REALTOR® members adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service® (MLS®) designed exclusively for REALTORS®. WinnipegREALTORS® serves its members by promoting the benefits of an organized real estate profession.
Winnipeg Real Estate Market Statistics
Despite the low interest rates, the housing market is not as strong as it was last year. Despite the drop though, there are still lots of houses that are selling for more and having multiple offers.
Taken from the Winnipeg Realtors Press Release:
April MLS® unit sales are down 15% (1,150/1,355) while dollar volume is down 12% ($239.5 million/$272.6 million) in comparison to the same month last year. April 2009 still resulted in the second highest dollar volume month on record for April and even sales rank among the top ten best Aprils. Year-to-date MLS® sales have decreased 12% (3,239/3,689) while dollar volume is off 7% ($650.0 million/$701.4 million).
For residential- detached sales, the most active segment of the MLS® market in April was the $150,000 to $199,999 price range with 24% of total sales. Next most active price range was $200,000 to $249,999 at 21%. 45% of the residential-detached sales in April were at or above list price.
Average days on market for residential-detached sales in April was 31 days, 1 day behind last month and 9 days off the fast pace set in April 2008.
