Winnipeg Free Press - PRINT EDITION
Posted: 04/26/2013 1:00 AM | Comments: 0
A new Statistics Canada report confirms what shell-shocked local homebuyers have known for years -- residential property values in Manitoba have been increasing at one of the fastest paces in the country in recent years.
The federal agency said a study of residential property assessment values in 10 provinces and 33 Canadian metropolitan areas found the total value of residential properties in Manitoba increased at the fourth-fastest rate among the provinces -- 65.5 per cent -- between 2006 and 2011.
In the final year of that five-year period, 2011, it rose at the second-fastest annual rate -- 12 per cent.
Even the global economic recession of 2008-09 couldn't slow the momentum in Manitoba, Statistics Canada said. "In Manitoba and Saskatchewan, the total value of residential properties grew strongly in 2009... "
The study found Winnipeg also stacked up well against its 32 urban counterparts on property-value gains. The total value of residential properties in the city increased at the eighth-fastest pace, 73.3 per cent, from 2006 to 2011, and at the fifth-fastest pace, 12 per cent, from 2010 to 2011.
This is the first year Statistics Canada has done a study like this. It said the results were based on assessed property values provided by provincial and municipal assessment departments.
All types of residential properties were included in compiling the assessed-value totals for each province and territory, including single- and multi-family homes, farm residences, cottages and vacation homes, mobile homes, institutional and communal residences and vacant residential lands.
Local real estate industry spokesmen said they weren't surprised by the strong showing in the Winnipeg and provincial housing markets.
"Manitoba properties have been undervalued over the years, and what they've done... is catch up," Manitoba Real Estate Association president Brian Canart said in an interview.
Canart said he's not aware of any other period in recent history where property values in Manitoba increased at a faster pace than in the last 10 years. He said there were even times during the late 1980s and early 1990s when property values here were declining from one year to the next.
What got things back on track, he said, was a combination of falling interest rates and consistently high employment levels in the province. Chronically low apartment vacancy rates also helped.
"That caused more people to... take the plunge (and buy a home)," he said.
Winnipeg Realtors Association president Richard Dettman said Winnipeg homes were also generally undervalued going into the new millennium, and the steady increases of the past decade have merely bumped them up to where they should have been.
He said one of the nice things is Winnipeg's housing market avoided the boom-and-bust cycles that some other Canadian cities have experienced during the last decade.
"I think if you were to look at the growth line, it would show pretty steady increases," he said.
He and Canart said a number of factors have helped drive up property values in recent years.
They include a prolonged period of historically low interest rates, which made buying a home more affordable for more people, and a steady influx of new immigrants into the province, including a lot of professionals who were in a position to buy rather than rent.
Though the escalation in house prices has been tough on homebuyers, it's been great for some home sellers.
Claude Davis, a real estate agent with Royal LePage Dynamic Real Estate and a past president of the Winnipeg Realtors Association, said a number of his clients were able to take the profit from the sale of their starter home to buy a larger, nicer, move-up property.
The Statistics Canada study found the value of residential properties increased in every province and all but one city -- Windsor, Ont. -- between 2006 and 2011. Saskatchewan led the provincial charge, with a whopping 132.6 per cent increase in residential property values, and Saskatoon had the biggest urban increase at 149.1 per cent.
House-price hikes by province, city
HERE are the percentage increases in residential property assessment values for Manitoba and the other nine provinces between 2006 and 2011 and 2010 to 2011:
Newfoundland and Labrador100.015.0
Prince Edward Island40.64.4
Here are the top eight cities in terms of property-value growth (%) for 2006 to 2011 and 2010 to 2011:
-- source: Statistics Canada
Republished from the Winnipeg Free Press print edition April 26, 2013 B4
Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.
Having problems with the form?Contact Us Directly
China's Central Bank to cut bank reserve requirement
World finance leaders see threats ahead for global economy
Vancouver symposium to ponder secrets to happiness
Email: Affleck asked PBS to not reveal slave-owning ancestor
Jamaica's government organizes trade mission to Cuba
Philanthropist, shopping mall developer Taubman dies at 91
Bangladesh guardedly welcomes Benetton factory victim pledge
When grain's gone, what to do with the bags?
Apple execs salary leaders
What summer students need
Manitoba's inflation rate jumps to 1.2 per cent
Fiorina says she'd neutralize Clinton's gender arguments
House prices edge up in Winnipeg: report
Provincial dairy production soars, driven by demand for locally made cheese and butter
Turning the page: Recently divorced mother braces for impact of new financial situation
Video released of 'Suge' Knight running over 2
US oil and natural gas rig count drops by 34 to 954
Senator: Decade-old Gulf oil leak is 'unacceptable'
Bank of China awarded $672 million in B.C. court
Worker burns face, neck in explosion at Ohio chemical plant
Group wants to bring back Native Hawaiian burial traditions
Recalls this week: blowers, bike hooks, mattresses, toys
Boost Mobile selling prepaid cards for Cuba calls and texts
Report looks at 2025 in tech crystal ball
Orange you the happy banker?
WikiLeaks creates archive of Sony emails, papers
Minnesota hit hard by bird flu outbreak
Count calories on NYC's Citi Bikes? New features coming soon
Valeant execs share US$123M compensation
Washington governor repeats call for state auditor to resign
No. 1 egg-producing state aims to keep bird flu out
China: New bank to enhance international finance system
Clinton cautious about Obama's Pacific trade deal
Family wins back seized gold coins that could be worth $80M
Suspicious vehicle at arsenal checkpoint prompts evacuation
Most actively traded companies on the TSX
American Express and Mattel are big market movers
Unruly man sentenced in case of jet diverted to Nebraska
How the Dow Jones industrial average fared Friday