Manitoba businesses score hat trick
Near-record sales of existing homes seen
Read this article for free:
Already have an account? Log in here »
To continue reading, please subscribe:
Monthly Digital Subscription
$4.75 per week*
- Enjoy unlimited reading on winnipegfreepress.com
- Read the E-Edition, our digital replica newspaper
- Access News Break, our award-winning app
- Play interactive puzzles
*Billed as $19.00 plus GST every four weeks. Cancel anytime.
Hey there, time traveller!
This article was published 04/12/2009 (4928 days ago), so information in it may no longer be current.
Sales of existing homes will rebound to near-record highs next year in Winnipeg, eclipsing the national increase in both unit sales and average selling prices, according to RE/MAX Canada.
"The outlook for 2010 calls for (MLS) sales to reach 12,500 units, up six per cent over 2009 levels, while average price surges to a new record at $217,350, representing a four per cent increase," the company says in its 2010 Housing Market Outlook report, issued on Thursday.
By comparison, Canada is expected to see a gain of only two per cent in both unit sales and average selling price, the company says.
Next year’s four per cent price hike would come on the heels of a projected five per cent increase for 2009, RE/MAX says.
That’s good news for most Winnipeg homeowners because their home is usually their largest asset — if selling prices are rising, that usually means their homes are also increasing in value.
If the RE/MAX forecast proves accurate, next year’s sales total would only be about 300 units shy of Winnipeg’s all-time yearly record of 12,809 residential sales set in 2007 when housing markets across the country were on fire.
Although WinnipegREALTORS hasn’t yet completed its 2010 forecast, its residential market analyst said the RE/MAX projections for sales and price increases don’t seem out of line.
"We definitely think there’s going to be a rebound next year, based on the fact we’re off a bit this year," Peter Squire said in an interview.
Squire said interest rates remain low and the Manitoba economy continues to perform well, which bode well for the housing market. The only thing he disagreed with is RE/MAX’s forecast of a one per cent dip in unit sales for this year. Squire said a decline of about four per cent seems more likely. But even that would be pretty good considering sales were running about 11 per cent behind last year’s pace after the first three months of the year, he said.
RE/MAX says a number of factors should help fuel house sales next year in Winnipeg, including the arrival of 6,000 to 7,000 skilled immigrants through the Provincial Nominee Program.
"This, combined with an already healthy economy set to ramp up in 2010 — consumer spending, retail sales, exports, the agriculture sector, base metal prices and capital expenditures are all poised for improvement — will bode well for Winnipeg’s real estate market going forward," it says.
High employment levels should also help persuade more Winnipeggers to take the home-ownership plunge, said real estate broker Alan Ediger of RE/MAX Executives in Winnipeg.
Ediger said there were plenty of prospective buyers this year, particularly first-time buyers. The problem was there weren’t enough available homes to meet the demand, which is why sales are down slightly.
"If we’d had more product, we wouldn’t have had a decrease (in sales)."