Winnipeg real estate market sees upward swing as pandemic progresses

By | July 9, 2020

WINNIPEG — Winnipeg’s real estate market has been making major moves forward as the COVID-19 pandemic continues on.

According to a news release from WinnipegREALTORS, the city saw real estate sales in June 2020 that were 24 per cent higher compared to the same month in 2019.

It noted that June’s monthly sales total of 1,897 units is the city’s best month on record.

Halfway into the year, Winnipeg’s year-to-date sales were at 6,779, which is less than one per cent behind the same time period for 2019, and only one per cent below the five-year average.

Catherine Schellenberg, president of WinnipegREALTORS, said Manitoba’s real estate market has shown resiliency.

“Resiliency is the word that comes to mind with respect to our real estate market upon reflecting on the first half of 2020,” she said in the news release.

“Manitobans put great value in the importance of home ownership and are showing it by their actions this year.”

A survey conducted by Probe Research, on behalf of WinnipegREALTORS and the Manitoba Real Estate Association, looked at whether the pandemic affected how Manitobans feel about buying a home.

It found that 11 per cent of Manitobans are now less likely to buy a home due to the COVID-19 pandemic, while 84 per cent said the pandemic has no bearing on their home-buying habits, and four per cent said they are now more likely to buy a home.

LISTINGS

Listings in Winnipeg have not seen the same kind of improvements as sales.

Though the number of new listings entered into the multiple listing service in June 2020 matched the number of listings added in June 2019, it didn’t catch up with the deficit created in April and May.

WinnipegREALTORS said the number of active listings is down 22 per cent compared to this point last year.

“We have a reduced inventory compared to the last few years with three months available if no new listings were to come on to our market based on current sales activity,” Schellenberg said.

“There are a number of Winnipeg neighbourhoods in particular with fewer residential-detached listings and very high sales to active listings ratios.

Due to Winnipeg’s current market situation – a demand for housing but deficit in listings – there were more real estate showings with multiple offers. This led to 29 per cent of residential-detached sales being sold for above list price.”

RECOVERY AHEAD

On Thursday Royal LePage released its House Price Survey and Market Survey Forecast, which predicts there is recovery ahead for Winnipeg’s real estate market.

The company said in the second quarter of 2020, the average price of a home in Winnipeg decreased 1.4 per cent year-over-year to $302,399, specifically noting that the median price of a condo decreased 4.1 per cent year-over-year to $231,036.

It’s predicting that in the fourth quarter of 2020, the average price of a home will stay flat compared to the same time last year at $311,000.

Royal LePage noted that due to remote working and the need for more space, there has been more of a demand for homes in communities outside of Winnipeg, which has driven up the prices.

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