Winnipeg Real Estate News Updates - May 2021
May 24, 2021 | Posted by:
May is winding down and summer is almost here, making this the opportune time for an update on the real estate market in the greater Winnipeg area. Is there anything important for first time buyers and/or seasoned investors to know about before getting a mortgage this quarter? Will the hot market cool down or maintain into the second half of the year ahead? Let’s find out.
Recent Developments in the Winnipeg Real Estate Market You Need to Know About as of May 2021
Detached Home Supply is Getting Dry
It was inevitable. The Bank of Canada choosing to maintain the overnight rate while continuing with the quantitative easing program (QE) has kept mortgage rates at historically low levels. Even the fast rise in home prices has done little to dissuade buyers and investors, Winnipeg remains to be the most affordable real estate market among major Canadian metropolises. The the average price for detached properties hovers just above $370,000, which is higher than we are accustomed to in the city, BUT nowhere near the average price for the other major cities in the country. Sellers have been selling, and buyers have been buying, and now we’re seeing the well dry-up on single detached family homes.
Is this slowing down overall sales? Nope. Why not? Because the faith in Winnipeg as a place to call home and as an investment remains unshakable. Buyers are simply shifting their focus to the next best (or preferred, for some) alternative. Keep reading.
Buyers Turning to Condominiums in Lieu of Detached Homes
The bulk of residential real estate developments over the last ten years focused on condos and other multi-residential properties. This was done to accommodate the significant number of people from across Canada who flocked (and continue to flock) to our central city to capitalize on economic and educational opportunities in addition to the other motivations for moving to Winnipeg. So while the detached housing market has tightened-up and increased pricing, favorable condominiums remain available for the taking. But they too are selling fast. In fact, they are selling at a record pace. The Winnipeg Regional Real Estate Board (WRREB) is reporting that April of 2021 drove 72% and 115% year-over-year increases in condo sales when compared to 2019 and 2020, respectively. May and June are expected be equally busy for the condominium housing market.
WRREB states that multi-residential sales have been most active in the $150,000-$199,999 range, with the next most active occurring between $200,000 to $250,000. These price points are indicative of first-time buyer behavior. With an average price just over $240,000 we encourage new buyers and investors alike to act now. Inventory will tighten here too, and prices will invariably increase, even though they will remain much lower than the national average.
The moral of the story on this most recent Winnipeg real estate news update is clear - act now to claim low interest rates and scoop up a preferred property before the inventory gets even leaner. Get pre-approved here, and call Ron Chan today for a friendly conversation at 204.290.9950.