The Winnipeg real estate market has hopped on the pandemic-era housing boom bandwagon. And while growth has been notable, it has not triggered an affordability crisis in this major urban centre.
Many young families and professionals have been migrating within Canada, with hopes of purchasing residential property at a budget-friendly price. Winnipeg and other areas across Manitoba have benefitted from this shift in home-buying trends.
But can these market conditions continue throughout 2022? Suffice it to say, the Winnipeg real estate market got off to an impressive start to 2022, and market forecasts anticipate modest growth for the rest of the year.
Spotlight on the Winnipeg Real Estate Market
According to the Winnipeg Regional Real Estate Board (WRREB), residential property sales fell 26 per cent year-over-year in January, totalling 690 units sold. On a historical basis, home transactions were just three per cent below the five-year average.
Industry experts attribute the decline to limited housing inventory.
WRREB data show that single-family listings slumped 31 per cent year-over-year in January. This has become the trend throughout the coronavirus pandemic, with listings sitting below 600 units. In comparison, there were close to 2,000 units for sale in December 2019.
Tight supply conditions have prompted an increase in Winnipeg real estate valuations. According to the WRREB, the average sales price of a single-family home topped $401,000 for the first time in its history, up 13.8 per cent from January 2021.
Last month, condos also enjoyed upward movement, climbing 12 per cent year-over-year to $251,629.
Overall, most of the Winnipeg region enjoyed notable price growth:
- North: $262,510
- Northeast: $417,273
- West: $282,840
- Southwest: $595,587
- Southeast: $484,255
The solution to soaring price growth that could help prevent more prospective homeowners from sitting on the sidelines? More supply.
“The Winnipeg Regional Real Estate Board has to go all the way back to 2008 when it found itself with such a depleted supply of listings on hand to meet buyer demand in our regional market. Limited supply curtailed sales, and this was most apparent in single-family where they were way off previous year’s activity,” said WRREB 2022 president Akash Bedi in a news release.
“We have our own supply chain issues, but the difference for us is it can be resolved locally with more homeowners putting their homes on the market. There is clearly an opportunity here for sellers to achieve maximum value for their homes based on current market conditions.”
New housing construction has been prevalent in the Winnipeg housing market over the last year.
According to Canada Mortgage and Housing Corporation (CMHC), housing starts advanced 53 per cent year-over-year to 482 units in December. Throughout 2021, shovels were in the ground on 5,700 residential units, up 12.97 per cent from 2020.
That being said, with the Bank of Canada (BoC) raising interest rates in March and more hikes rumoured later this year, buyers and sellers could accelerate their 2022 plans, added Bedi.
What About Other Manitoba Real Estate Markets?
The trends unfolding in Winnipeg are happening elsewhere in the province, too.
In the city of Brandon, residential sales declined 15.4 per cent year-over-year in November, totalling 33 units. However, in the first 11 months of 2021, Brandon real estate transactions increased 14.4 per cent compared to the first 11 months of 2020. Data from Brandon Area REALTORS show that single-detached home sales were 11.8 per cent below the five-year average.
On the pricing front, the median sale price for single-detached homes sold in November gained 9.5 per cent year-over-year, totalling $290,000. Demand for Brandon homes was fierce, with the median number of days on the market coming in at five, down from 28 days in November 2020.
In the broader province of Manitoba, residential property sales slipped 2.7 per cent year-over-year in December, totalling 945 units. The average sale price advanced at an annualized rate of 10.1 per cent to $334,256. New residential listings declined 14.5 per cent to 768.
Will Affordability Reign Supreme in Winnipeg?
With the central bank increasing its interest rate, which will add to borrowing costs, some market analysts anticipate easing across the broader Canadian real estate market.
But might the same expectation apply to the Winnipeg housing sector? Not quite.
According to the RE/MAX 2022 Canadian Housing Market Outlook, Winnipeg housing prices are forecast to rise 3.5 per cent to $322,858 by the end of the year, with sales increasing seven per cent.
The Winnipeg real estate market is striking a balance between growth and affordability. The national average home price in February hit a new high according to the Canadian Real Estate Association, at $816,720. This leaves many young families who want to become homeowners seeking opportunities in the more-affordably priced Winnipeg housing market. It is a growing municipality, especially as the prairies attract newcomers and potentially fresh capital injections to support economic growth.
Nanaimo Real Estate Market Report: January 2023 – Nanaimo News NOW
Montreal home sales down 36% from January 2022: Quebec real estate association
MONTREAL — The Quebec Professional Association of Real Estate Brokers says Montreal’s January home sales fell to a level not seen since 2009 as the market slowdown continued.
The association says last month’s sales totalled 1,791, down 36 per cent from 2,816 in January 2022.
Charles Brant, the association’s market analysis director, says these numbers mean activity is approaching a historic low for the month of January and come as rising interest rates are weighing on homebuyers.
He says first-time homebuyers in particular are taking a cautious wait-and-see attitude despite recent drops in prices.
The median price of a single-family home edged down seven per cent to $500,000 year over year, while condos dipped three per cent to $370,000 and plexes dropped six per cent to $675,000.
As median prices fell so did new listings, which hit 4,598 compared with 4,808 a year ago.
This report by The Canadian Press was first published Feb. 7, 2023.
The Canadian Press
B.C. residential real estate investors unfairly ‘painted as speculators’: BCREA
Statistics Canada released data last week revealing 23.3 per cent of B.C. homeowners are also investors in the market. The Vancouver census metropolitan area (CMA) had an overall investment rate in condominiums and houses of 21.3 per cent.
“Investors often get kind of painted as speculators who are out to buy up housing and do nothing with it, or flippers or any other kind of pejorative terms that we add to investors. But what this data shows, and what’s good to understand, is that they’ve really invested a lot in a primary rental in Canada,” said Brendon Ogmundson. “A lot of the rental units that are being provided are smaller investors who own one unit and are renting it out.”
Statistics Canada defines an investor as an “owner who owns at least one residential property that is not used as their primary place of residence.”
In B.C., 73 per cent of properties with multiple dwellings were owner-occupied investment properties. Investor-occupants are more common in the province, making up 9.6 per cent of owners.
This is due to a higher proportion of properties with multiple residential units – 11.7 per cent – such as laneway units or basement suites, according Statistics Canada. The national statistics agency said these types of units are more likely to be owner-occupied.
“So many owners in B.C. have chosen to also be landlords by renting out their basement suites or laneway houses and it’s way, way different than any other province in this dataset,” Ogmundson said.
Statistics Canada data breaking down homeowners by investor-type.
The region of Greater Vancouver A or Electoral Area A, which includes the University Endowment Lands, Barnston Island, Howe Sound communities, Indian Arm and Pitt Lake communities, had a higher proportion of houses and condominium apartments used as an investment at 42.1 per cent compared with the rest of the region.
The City of Vancouver had a lower proportion at 32.5 per cent.
This difference is attributed to students attending the University of British Columbia, who are more likely to be renters or live in a second property owned by a family member, according to Statistics Canada.
The proportion of condominium apartments owned for investment purposes by non-resident investors was the highest in B.C. among the provinces – seven per cent.
The rate of condominium apartments used as investment was lower in the Vancouver CMA (34 per cent) than the rest of the province.
Across B.C., non-residents and out-of-province investors owned 43,890 houses used as an investment. This number was typically higher in areas near the Alberta border.
Out-of-province investors owned 1.6 per cent of homes in B.C., while in-province investors accounted for 9.8 per cent of all investors.
How much money is needed to retire in Canada – CTV News
Hermès Wins MetaBirkins Lawsuit, With Jurors Deciding NFTs Aren’t Art – The New York Times
Art Cashin says January upside surprises a lot of veteran traders, but he's skeptical of the rally – CNBC
Silver investment demand jumped 12% in 2019
Iran anticipates renewed protests amid social media shutdown
Search for life on Mars accelerates as new bodies of water found below planet’s surface
News23 hours ago
PM Trudeau presents premiers $196B health-care funding deal, including $46B in new funding
Media14 hours ago
Vancouver woman wins identity fraud fight with Bell Mobility after posting on social media
Real eState17 hours ago
Okanagan real estate feeling the impact of higher interest rates
Real eState23 hours ago
UK property register: What three luxury homes reveal about who owns UK real estate
News16 hours ago
Why some migrants turn around and head back to NYC after free bus ride to near Canadian border – CBC.ca
Business16 hours ago
Ship-To-Ship Loadings Of Urals Hit Record High As Russian Oil Heads To Asia
Real eState16 hours ago
B.C. residential real estate investors unfairly ‘painted as speculators’: BCREA
Media15 hours ago
Lawler pays tribute to Edmonton on social media, says goodbye to Elks ahead of CFL free agency – Global News