Winnipeg house prices will rise at a moderate pace — anywhere from one to five per cent — this year as market conditions become more balanced, according to a new report from Re/Max Real Estate Services.
In its inaugural Spring Market Trends Report released today, the real estate company says that after a dozen years as a seller’s market, where demand outstripped supply in many neighbourhoods, the Winnipeg market is now becoming more balanced.
So far in 2014, the number of listings is up and sales are down, it says, which is easing the upward pressure on selling prices.
The company says the average residential price in the first quarter was still up 4.7 per cent from a year earlier — $269,578 versus $257,481. But it expects price growth to moderate as the year progresses for upper-end homes.
They’re expected to see a price increase of only one to two per cent this year due to weaker demand, it says, while homes priced at less than $400,000 are projected to see gains of between four and five per cent.
"Immigrants, locals who have accumulated significant savings and those who have benefitted from Winnipeg’s robust agricultural and manufacturing sectors have been the most active in the market," the report states.
However, "Manitoba’s land transfer tax continues to be a particular burden on first-time entrants to the market, who arrive with little or no equity to place against the purchase of a home," it adds.