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June shows signs of improvement in comparison to 2017

http://www.winnipegrealtors.ca/Resources/PressRelease?fileID=496

Reused by permission of the Real Estate News

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.

Other than the southeast MLS® zone of Winnipeg, where the average residential-detached sales price dropped from $366,288 in 2017 to $359,876 this year, all other zones showed increases with the northeast zone up the most from $248,968 to $287,841.

“When looking at 2018 you cannot understate the fact it is up against the best sales years on record in 2016 and 2017,” said Dudeck. “Considering buyers are being sidelined in many Canadian housing markets to a much greater extent than in Winnipeg , we should remain positive about our results.”

He added, “I cannot stress enough our more affordable housing prices with a wide selection of property types to choose from creates favourable conditions for buyers to purchase a property going into the second half of 2018.”

”All markets across Canada are not the same and vary even within a local market,” said Marina R. James, CEO of WinnipegREALTORS®. “You need to be calling your REALTOR® who has the knowledge and expertise to interpret what your needs are with respect to the current market.”

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.

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.
For further information, contact Peter Squire at (204) 786-8854.
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April regains some lost momentum in 2018

http://www.winnipegrealtors.ca/Resources/PressRelease?fileID=494

Reused by permission of the Real Estate News

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®

 

 

 

 

 

 

 

 

 

 

 

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A slow start to the first quarter

http://www.winnipegrealtors.ca/Resources/PressRelease?fileID=493

Reused by permission of the Real Estate News

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.”

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February sales down 11%

http://www.winnipegrealtors.ca/Resources/PressRelease?fileID=492

Reused by permission of the Real Estate News

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.”

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Solid December closes out a successful year of MLS® sales activity

http://www.winnipegrealtors.ca/Resources/PressRelease?fileID=485

Reused by permission of the Real Estate News

 

 

 

 

 

 

 

 

 

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.

“One real strength of our local market is its stability,” said Sonnichsen. “As we embark on a new year I believe Manitoba’s resilient and diversified economy will once again help us meet the headwinds which may pose a challenge to us in 2018.”

 

 

 

 

 

 

 

 

 

 

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