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Low inventory levels set stage for heated Spring market
in most major Canadian centres, says RE/MAX
Active listings down in 81 per cent of markets in January
Lack of inventory will be the greatest challenge facing housing markets across the country this Spring,
according to a report released by RE/MAX.
The RE/MAX Market Trends Report 2010, which examined real estate trends and developments in 16
markets across the country, found that unusually strong activity during one of the traditionally quietest
months of the year has led to a sharp decline in active listings in 81 per cent of markets surveyed. The
threat of higher interest rates, tighter lending criteria, and in British Columbia and Ontario, the
introduction of the new Harmonized Sales Tax (HST) have clearly served to kick-start real estate activity
from coast-to-coast, prompting an unprecedented influx of purchasers. As a result, 87.5 per cent of
markets posted an increase in sales in January. Average price appreciated in 81 per cent of markets
surveyed.
Affordability is the catalyst for the vast majority of purchasers in today’s housing market. While
homeownership is still within reach in many major centres, levels are slipping. There is a growing sense,
on both sides of the fence, that the time to act is now.
Markets experiencing the tightest inventory levels include Toronto (- 41 per cent); Kitchener-Waterloo
(-33 per cent); Ottawa (- 30 per cent); Victoria (- 30 per cent); Greater Vancouver (- 27 per cent); Halifax-
Dartmouth (- 19 per cent); London-St. Thomas (- 18 per cent); Regina (- 16 per cent); and Winnipeg (- 13
per cent). Conditions were still balanced, but starting to tighten in Calgary, Edmonton and Saskatoon,
particularly in the single-family detached category.
The highest year-over-year sales gains were reported in Greater Vancouver (152 per cent), Kelowna (121
per cent), Greater Toronto (87 per cent), Victoria (69 per cent), Hamilton-Burlington (58 per cent),
London-St. Thomas (55 per cent) and Calgary (47 per cent). Western Canadian cities dominated the list
of centres with the highest increases in price appreciation. These included Victoria at 25.5 per cent,
Kelowna at 22 per cent, Greater Vancouver at 19.5 per cent, and Winnipeg at 17 per cent. St. John’s (23
per cent) and Toronto (19 per cent) were also among the frontrunners for price growth.
There have never been so many motivating factors in play at once. We’re in for a heated Spring market
that will, in all probability, spill over into the summer months as the window of opportunity draws to a
close. The supply of homes listed for sale has been drastically reduced, housing values are once again on
the upswing, and banks and governments are moving in unison toward stricter lending policies.
While buyers are taking advantage of favourable conditions, sellers too are reaping the rewards.
Competing bids are a factor in the marketplace once again, with well-priced listings—especially at the
entry-level price point—experiencing multiple offers. Properties priced at fair-market value will likely
sell quickly for top dollar. The overall pressure on sales and price is significant across the board – and
it’s not likely to subside unless more inventory comes on-stream.
The level of frustration is growing, as pent-up demand builds. For every successful offer, there are those
that will walk away empty-handed. They’re thrust back into the buyer pool and the process starts all
over again. Some buyers are upping the ante, while others are considering alternate housing options.
Still, purchasers remain cautious in their bids, with most careful not to max out debt service ratios.
Recent revisions to lending criteria will add fuel to the fire in the short term. Buyers considering a
variable rate mortgage will step up their plans for homeownership in the next month or so just to get in
under the wire. In the longer term, buyers will adjust, but move forward. Compromise has long been a
reality—particularly in the larger centres. This simply means they may go smaller or further in their
pursuits.
It’s been a 180 degree turnaround from this time last year. It’s clear that real estate from coast to coast
has roared back to life and markets are once again firing on all cylinders. The vast majority of markets
are now recovered and fully-evolved, with all segments working in tandem. At the luxury price point,
activity was brisk in seventy-three per cent of centres surveyed, with momentum ramping up in the
remainder. Opportunity exists in some areas, but the question is for how much longer?
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February 8, 2010
For Immediate Release
JANUARY MLS® DOLLAR VOLUME RECORD SET
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First Time MLS® January Sales Dollar Volume Cracks $100 million
WINNIPEG – Despite MLS® sales being down less than 500 for the first time in 6 years, dollar volume continues to forge ahead as it crashed through the $100 million mark for the first time in the month of January. Helping bring this level up to a record total in January was a home sale worth $1,080,000. Last year WinnipegREALTORS® saw more million dollar plus sales than ever before at 14 (previous best was 2008 with 8 sales).
The weak sales results to a large degree reflect a real shortage of residential-detached listings in a number of the sought after MLS® neighbourhoods within Winnipeg. There were a number of areas where there were more sales than new listings coming on the market in January so any of the remaining inventory from December was adding to the larger sales figure. With the exception of 2009, the overall MLS® listing inventory is still better than some previous years but that does not mean anything to a buyer looking for a home in a particular area with nothing for sale.
More credence to the lack of listings yet strong demand was the fact 35% of homes this January sold for above list price. This was over twice the percentage recorded in January 2009. The average residential-detached sales price was up 17 % from January 2009 and rose 2% over the best December ever in 2009 where the average sale price was $219,000. The average days on market to sell a residential-detached listing in January was 10 days faster than the same month last year.
January MLS® unit sales were down 7% (487/524) while dollar volume was up 6% ($102.1 million/$96.5 million) in comparison to the same month a year ago. The equivalent of one in two new listings were sold in the month of January and one in four active listings changed hands.
“While a somewhat disappointing sales result given how strong a finishing month WinnipegREALTORS® enjoyed last year, there are signs based on other performance indicators that market improvement is in the offing once more listings start coming on stream,” said Claude Davis, president of WinnipegREALTORS®. “You might say it is still too early in the game to get overly concerned and the next few months will show more of a trend line that will determine how our MLS® market should perform this year.”
The latest employment numbers released in February show an improvement in employment across the country (Manitoba’s unemployment rate edged down from 5.8 to 5.4 per cent) and Bank of Canada Governor Mark Carney gave no hint in Winnipeg while speaking at a Chamber event this week that he was about to raise the bank rate anytime soon so Canadians can continue to take advantage of the most favourable mortgage financing terms in years.
“It is important to understand how the affordability of housing through lower interest rates can help the entire housing market,” stated Davis. “If someone is looking to build and/or buy a brand new home which is significantly higher than the average resale home price in this market then they will be relying on selling an existing home to give them the necessary equity to qualify them for the more expensive undertaking. Their move to a new home triggers the release of an existing home to go on the market and therefore can even set the stage for another home listing if the buyer of the resale home is a homeowner.”
The most active residential-detached price ranges in January 2010 were the $150-$199,999 and the $200,000 to $249,999 ranges with 21 and 20% respectively of total sales. While less active than the aforementioned price ranges, the $250,000 to $299,999 price range had the lowest average days to sell on market at 24 days. Speaking of days on market, the average residential-detached days on market for January 2010 was 32 days, 3 days faster than last month and 10 days quicker than January 2009.
The average days on market for condominium sales in January 2010 was 47 days, over three weeks slower than the previous month and ten days off the pace set in January 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.
PRESS RELEASE
January 11, 2010
For Immediate Release
SLOW START, GREAT FINISH TO 2009
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Almost $2.5 Billion Worth of MLS® Sales
WINNIPEG – Winnipeg ’s MLS ® market shook off early year recession concerns and another major flood to post a much better second half and end the year with a strong result. 2009 MLS ® sales of 12,182 only take a back seat to the 2007 record-setting year of over 13,000 sales and to 2008 and 2006 where sales were 12,630 and 12,304 respectively. Considering in the early stages of 2009, MLS ® sales were down as much as 12% and worked their way back to be off less than 4% is quite a come back. More impressive however is that MLS ® dollar volume rebounded from being down 9% at the end of May to finish ahead by 2%, and in doing so, set an all time best MLS ® dollar volume record just shy of $2.5 billion.
The Winnipeg market has proven three years in a row that $2 billion worth of MLS ® sales activity is attainable and then some. It is a reflection of strong market fundamentals and the continued strength of the local economy which is supporting increased population growth.
Resale housing transactions generate significant economic activity in and of themselves. For every house sale, it generates $40,000 worth of economic spin-offs. If you put MLS ® residential sales in 2009 at 11,382 allowing for removal of vacant lots, commercial properties, mobile homes and rural, you arrive at a total economic impact of over $450 million. Direct and indirect jobs are created as well.
2009 MLS ® sales totaled 12,182, down less than 4% from 2008 while 2009 dollar volume rose 2% from 2008 to finish at $2.47 billion. Conversion of listings to sales ended with a good ratio of 70% but not as strong as 2007 where it was over 80%. For residential-detached properties, three out of every four listings sold in 2009..
“Our MLS ® market resiliency shone through in 2009 as it was not without its challenges early on,” said Deb Goodfellow , outgoing president of WinnipegREALTORS ®. “And quite remarkably we finished off in impressive fashion with a best December ever and a new annual dollar volume record. While there were clearly more pronounced weaknesses this year in some MLS ® property type sales predisposed more to investment than ownership, it does show the two primary residential-detached and condominium property types are more than holding their own in this market.”
Speaking of December, for the first time in 106 years, WinnipegREALTORS ® had December sales eclipse 600 and dollar volume go over $100 million. December MLS ® unit sales were up 23% (619/504) and dollar volume soared 36% ($125.3 million/$91.8 million in comparison to the same month a year ago.
In stark contrast to December 2008 where the average residential-detached sale price of $189,000 was well below the yearly average sale price of $206,000, December 2009 had an average sale price of close to $220,000 which is higher than the annual 2009 average sale price of $217,370. Likewise, more than one out of every three listings sold in December 2009 compared to less than one out of four in December 2008.
The average days on market for residential-detached sales in December was 35 days, a week quicker than December 2008.
“We are having a 2010 WinnipegREALTORS ® forecast breakfast next week on January 19th so I will refrain from making any predictions for this year other than to say we are going forward with much better momentum and results from the end of 2009 than we did in 2008,” said Goodfellow. “This makes me optimistic for 2010.”
Attached you will find a year end highlight sheet noting some of the MLS ® activity in 2009 throughout WinnipegREALTORS ® MLS ® market region. To understand fully what may be applicable in your own real estate situation depending on the property type and area you live or are interested in, you need to be calling a REALTOR® - your local market expert.
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.
PRESS RELEASE
December 7, 2009
For Immediate Release
A NOVEMBER TO REMEMBER
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MLS® Sales Up 28%; Dollar Volume Rises 42%
WINNIPEG - November was certainly a month to remember for weather with more spring-like temperatures and a strong rebound in job creation. MLS® activity responded favourably too with an all time best dollar volume figure for November and sales second highest on record for November. Only November 2007 was better and that was by only 43 sales.
Statistics Canada reported Manitoba reduced its unemployment rate from 5.8 to 5.3 per cent in November, placing it in a virtual tie with Saskatchewan (5.2 per cent) as having the lowest unemployment rate in the country. The mild and dry weather kept traffic busy at MLS® listed homes with 35 per cent of the sales going for above list price and it goes without saying many of them would have received multiple offers. It also resulted in reducing the overall MLS® inventory by one-third.
November MLS® unit sales were up 28% (837/656) while dollar volume soared 42% ($166.3 million/$116.9 million) in comparison to the same month last year. Year-to-date MLS® sales are down less than 5% (11,563/12,126) while dollar volume is now ahead by less than 1% ($2.34 billion/$2.33 billion) in comparison to the same period in 2008. It is noteworthy to mention year-to-date conversion of MLS® listings to sales has improved markedly from the beginning of the year where it was as low as 51 per cent. With only a month to go, it sits at 69% - just shy of the conversion rate for 2008.
“While Winnipeg’s positive turnaround the second half of this year has been no where near as dramatic as some other real estate markets in the country since it did not suffer the same drop off in sales activity in 2008, it is still very encouraging to see sales and in particular dollar volume surge back,” said Deb Goodfellow, president of WinnipegREALTORS®. “It has set the stage for our highest MLS® dollar volume year on record and MLS® sales finishing fourth or fifth best in 106 years.”
Another positive sign in November was new MLS® listings being up over the last number of years for this time of year. This is an indication REALTORS® are getting the message out that there are lots of buyers in the market willing to make a good offer on the right property.
For residential-detached sales, the two most active price ranges were the $150,000 - $199,000 and the $200,000 to $249,999 with each having 23% of total sales. Next busiest price range was the $100,000 - $149,999 at 19%. November amply proved how diverse Winnipeg’s real estate market is with a sale of $1.1million and another one at $3,500.
The average days on market for sales of residential-detached listings in November was 29 days, the same pace as last month, and 3 days quicker than November 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. REALTOR®, MLS® and Multiple Listing Service® are trademarks owned and controlled by the Canadian Real Estate Association and are used under licence.
PRESS RELEASE
November 9, 2009
For Immediate Release
OCTOBER SALES MIRROR LAST YEAR’S
_ _ _
MLS® Dollar Volume Up 10% to over $200 million
WINNIPEG – A recurring theme this year as evident in October has been the consistent dollar volume strength of the Winnipeg resale market. Despite sales being softer this year than the two previous years, dollar volume in 2009 is within reach of setting a new all time level above last year’s record of $2.42 billion. Helping spur October’s high dollar volume relative to number of sales is three more million dollar plus home sales. There have now been 12 million dollar plus home sales and one million dollar plus condo sale, five more than the highest yearly total achieved in 2008. Also noteworthy in comparing October’s dollar volume to last October is the more pronounced activity in the $200,000 to $250,000 price range – a 30% increase over the same price range from a year ago.
Significant to the progression in Winnipeg’s housing market to this higher price range is the highest land transfer tax rate in the country at 2% kicks in after $200,000. So, if someone is buying a home at the top end of this price range at $250,000, they are paying the provincial government another $1,000 in addition to the $1,625 they are required to pay for a house value of $200,000. What is most troubling is an increasing number of these home buyers are first time buyers who in essence are being double taxed as they are using after tax income dollars to come up with the necessary down payment and closing costs. At least for second time buyers they may have the benefit of using the proceeds from the sale of their first home to help cover off the province’s land transfer tax. Of the provinces that have a land transfer tax, most offer a first time buyer exemption in recognition of this unfair tax treatment.
October MLS® unit sales were virtually identical (979/981) while dollar volume was up 10% ($201.4 million/$183.4 million) in comparison to the same month last year. Year-to-date MLS® sales are down 6% (10,726/11,470) while dollar volume is off less than 2% ($2.17 billion/$2.21 billion) in comparison to the same period in 2008. 37 % of the active MLS® inventory in October sold while 35% of homes sold in October went for above list price. These indicators show improvement over October 2008.
“Positive consumer sentiment combined with the opportunity to take advantage of historically low mortgage rates is fueling higher-end sales activity in our local market,” said Deborah Goodfellow, president of WinnipegREALTORS®. “Given what we faced earlier this year, the MLS® results now are encouraging and show consumers are confident in ownership of housing as a solid long-term investment.”
Even with rising house prices, affordability remains one of our market’s strongest suits with 83% of all residential-detached homes sold in October selling for less than $300,000. In comparison, Calgary had only 14% of its MLS® residential-detached sell for less than $300,000. And Winnipeg nearly had one in every two homes selling for under $200,000 whereas Calgary had less than 1% under $200,000.
Whatever price range you are considering selling or buying in, it is strongly advised you contact a REALTOR® to help you devise a strategy based on current market and neighbourhood information.
For residential-detached sales, the most active price ranges were the $150,000 - $199,999 and the $200,000 to $249,999 representing 25% and 23% respectively of total sales. A distant third price was the $100,000 to $149,999 at 14%. The average days on market of sales of residential-detached listings in October was 29 days, one day quicker than last month and one day slower than October 2008.
The highest residential-detached sale sold for $1,200,000 while the lowest went for $7,500.
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.
October 5, 2009
For Immediate Release
FIRST RECORD MLS® SALES MONTH IN 2009
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September MLS® Sales Up 3%; Dollar Volume Rose 11%
WINNIPEG – It took nine months to set a new monthly MLS® sales record this year but they say patience is a virtue so it is worth waiting for. Third quarter MLS® sales in 2009 were almost on par with the same period in 2008. This result shows the Winnipeg real estate market has returned to its former glory with healthy market activity. Even more impressive is the continued dollar volume rise as evident from an 11% increase from 2008 to 2009 in the third quarter. Year-to-date dollar volume is now less than 3% off the record dollar volume pace set last year and just $25 million away from reaching the $2 billion mark for the third consecutive year. It is quite conceivable that with a solid fourth quarter performance 2009 will usher in a new WinnipegREALTORS® dollar volume record. Last year’s total MLS® sales eclipsed $2.4 billion.
In being the best September in 106 years September 2009 also recorded two million dollar plus MLS® sales. As a result, the ten year-to-date million dollar plus sales are more than any other year as 2008 had the most previously at eight. The two recent ones are a Wellington Crescent apartment condo and a 6,000 sq. ft. Tuxedo home which sold for above list price.
September MLS® unit sales were up 3% (1,127/1,097) while dollar volume jumped 11% ($227.6 million/$204.9 million) in comparison to the same month last year. Year-to-date MLS® sales are down 7% (9,747/ 10,489) while dollar volume is off less than 3% ($1.97 billion/$2.03 billion) in comparison to the same period in 2008. Conversion of MLS® listings-to-sales this year is 67%, a few percentage points off last year’s conversion rate. Home and condo conversions are running at 72 and 73% respectively.
“The absolutely terrific above average weather in September shone brightly on our local real estate market as sales were the best on record for this month,” said Deborah Goodfellow, president of WinnipegREALTORS®. “We are recovering from our slow start this year as the third quarter performed extremely well and there is no reason to believe we cannot finish strong in the fourth quarter.”
A recent Statistics Canada report showing Manitoba’s population growth had its best quarterly increase since record-keeping began in 1971 can only bode well for keeping demand brisk in the local housing market. It becomes even more pronounced when you consider the acute shortage of good rental units as an alternative living accommodation. Low unemployment numbers and very favourable mortgage rates are also contributing factors to helping WinnipegREALTORS® have one of its best years on record.
For residential-detached sales, the most active price ranges were the $150,000 to $199,999 and the $200,000 - $249,999. They represented 24% and 21% respectively of total residential-detached sales. Interestingly enough, similar percentages of total sales in these two price ranges were also found in condominium sales for September 2009. However, 23% the of condo sales were between $100,000 to $149,999, whereas in residential-detached it was only 14%
The average days on market of sales for residential-detached listings in September was 30 days, the same as last month and 4 days slower than September 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. REALTOR®, MLS® and Multiple Listing Service® are trademarks owned and controlled by the Canadian Real Estate Association and are used under licence.
For further information, contact Peter Squire at 786-8854.
PRESS RELEASE
September 8, 2009
For Immediate Release
ANOTHER MLS® MONTHLY DOLLAR VOUME RECORD SET
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August MLS® Dollar Volume Reaches $231 million
WINNIPEG - While MLS ® sales in August fell short of last year’s mark by only 17 sales and 11 % off the best sales month on record for August in 2005, this year’s August, based on prices in general being slightly better in comparison to last year, recorded its best dollar volume result ever for this month at $231 million. It also paves the way for the third consecutive year of $2 billion worth of MLS ® sales activity as year-to-date dollar volume now sits at $1.75 billion.
August 2009 also saw WinnipegREALTORS® record its 8th million dollar plus home sale which is equal to the most sales ever sold in one year in this price range. It was an impressive newly built home in Waverley West that sold for $1,290,000. With four months to go, there is a distinct possibility another one or more luxury homes may sell before year end. There are currently 18 million dollar plus MLS ® listings – 16 homes and 2 condominiums. The highest list price is a Wellington Crescent home going for $2,800,000.
Talking about million dollar plus home sales, the Calgary Real Estate Board sold its first $10 million home in August. It was the home of former NHL goaltender Mike Vernon.
Also noteworthy, is year-to-date sales activity in comparison to the same period last year is improving and coming within a few percentage points now of WinnipegREALTORS® January forecast. It predicted home sales would be down 5% from last year and house prices up in the low single digits as opposed to double-digits like the past six years.
August MLS ® unit sales were down 1% (1,151/1,168) while dollar volume rose 6% ($231.2 million/$218.9 million) in comparison to the same month last year. Year-to-date MLS ® sales are off 8% (8,620/9,392) while dollar volume is down only 4% ($1.75 billion/$1.83 billion) in comparison to the same period in 2008. Year-to-date active MLS ® listings of 3,000 at month end are tracking very close to last year while listings entered on the MLS ® to the end of August are at 13,000, slightly lower than 2008.
“August 2009 is looking very much like August 2008 and that is just fine by me,” says Deborah Goodfellow, president of WinnipegREALTORS®. “Both of these months rank among the best for this time of year and indicate Winnipeg ’s real estate market is on a solid footing with buyers confident in moving forward in their purchase decisions. Helping this along are news reports of a national market recovery and Manitoba faring better than most other provinces in employment and GDP growth.”
“Maintaining a relatively good inventory with 3,000 MLS ® listings is also ensuring more balance in our current market where there is price stability and moderation,” said Goodfellow. “With more summer-like weather returning to our province this September, it certainly cannot hurt to put buyers in a better mood to check out all the MLS ® listings on the market and contact a REALTOR® if they are serious about making a move.”
One thing to keep in mind with any property is how long on average it may take to sell. There are a number of factors involved and price is by far one of the most important ones. In looking at WinnipegREALTORS® market thus far this year, there are some clear differences when you consider different price ranges. In the $500,000 and over price range, the average days on market for the 10 sales in August was 50 days. In stark contrast, for the 198 homes selling in the $150,000 to $199,999 price range, they were only on the market for 23 days. The year-to-date days on market numbers for these price ranges are almost identical to August.
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. The next most active price range at 14% of sales was from $100,000 to $149,999.
The average days on market for sales of MLS ® residential-detached listings in August was 30 days, the same as last month and 5 days slower than August 2008. The average days on market for the 128 condominium units sold in August was 40 days, 7 days slower than last month and over 2 weeks off the pace set in August 2008.
34% of all condos sold in the price range from $100,000 to $149,999 and another 20% sold in the price range from $150,000 to $199,999.
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.
For further information, contact Peter Squire at 786-8854 .
PRESS RELEASE
August 6, 2009
For Immediate Release
A JULY NO ONE CAN DENY
_ _ _
New July Dollar Volume Record Set
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 condomimium 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.
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