Winnipeg Real Estate News Updates - November 2020
November 25, 2020 | Posted by:
November is winding down and the Holiday season is near, making it the perfect time to weigh in with some recent news. While most headlines around Canada are focused on the pandemic there are some positive things you need to know about, namely when it comes to the local real estate market.
What’s new in our neck of the province? Some pretty impressive stuff. Let’s have a look.
Recent Developments in the Winnipeg Real Estate Market You Need to Know About as of November 2020
Manitoba Real Estate Sales Shatter Records
Again? Didn’t we report the same thing just over a month ago? We did indeed, but the machine keeps churning as interest in Winnipeg properties continues to thrive.
This past week the Manitoba Real Estate Association (MREA) reported that with well over 1,600 home sales the province the highest level of activity for the month of October on record. And we’re not just talking about a small record breaking increase. Home sales were up by over 31% when compared to the same month last year - prior to the collapse of the global economy.
How is this possible? Good question. You might think that it’s because prices have dropped. That is the logical conclusion, but instead the values of homes have risen, with sellers often getting more than the asking price. The MREA reports that the sales value for the month rang in at nearly $520 million ($518.7 to be exact) which represents an over 45% increase year over year for the period. These values have grown thanks in part to fewer listings, something that is occurring with somewhat limited new residential construction over the last couple of years.
So again, how can sales be skyrocketing during such a crazy time? There are a couple of reasons. For one, while prices remain strong, mortgage rates have plummeted to record lows. This is true of both 5-year fixed and variable mortgage rates. Secondly, a different kind of buyer fatigue has settled in. Traditionally, buyer fatigue refers to when buyers have had no luck in their search for a home and begin to feel disheartened in their search. In 2020, the fatigue came from the same willingness to buy, but was stifled by an economic lockdown and period of uncertainty. Once March, April, and May passed, prospective buyers simply couldn’t play the waiting game any longer. Sales ramped up through the summer and the trend continues deep into the fiscal year, and we expect November and December to post record numbers as well. This is especially true now that a vaccine is on the way and mortgage rates will almost certainly rise in 2021.
If you’re considering buying, act now before the inventory tightens further and mortgage rates begin to rebound in the less favorable direction. Contact Ron Chan today at 204.290.9950 to get started on the mortgage process.
