November home sales, prices dip from last year

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This article was published 08/12/2023 (653 days ago), so information in it may no longer be current.

HOME sales and prices slightly declined in November compared to a year ago, data from the Winnipeg Regional Real Estate Board show.

Detached house sales dropped six per cent from November 2022, while the average price — $374,394 — was down a single percentage point.

The dips come amid a higher interest rate environment. The Bank of Canada has hiked its key policy rate 4.75 percentage points since the beginning of 2022. The increase affects mortgage interest rates.

In Winnipeg and the surrounding regions, more homes have come to market. The number of listings has been increasing year-over-year for the past 17 months, the board noted in a news release.

Lower prices and fewer sales likely have more to do with the number of listings than interest rates, said Rena Prefontaine, president of the board.

“The people that are in the market are in the market,” she stated.

However, some potential buyers could be holding off to see whether interest rates drop next year, Prefontaine continued.

“There’s still plenty of room for growth in both listings and sales,” she said.

In November, the board clocked 3,766 active listings, up nine per cent from 2022 and seven per cent over the five-year average.

Condominiums followed the same trend line as detached homes — more listings, less sales and lower prices on average year-over-year.

The average condominium in the Winnipeg metropolitan region cost $245,946 in November. It’s an eight per cent decrease from 2022 but no change when looking at the five-year average.

Detached home prices were three per cent higher than the five-year average in November.

Townhouses — and other attached homes — bucked the trends last month, according to the board.

Townhouse sales increased 24 per cent year-over-year, to 62 sales, and the average price rose four per cent to $329,866.

“It’s less expensive, and you can still get into those newer neighbourhoods,” Prefontaine outlined.

Often, townhouses and similar residences have the same square footage as detached homes.

There’s been an increase in attached home builds, meaning more to choose from on the market, Prefontaine noted.

Purchases of attached residences were down 21 per cent over the five-year average. The five-year average includes data from the COVID-19 pandemic, where listings dropped during a period of high demand and rising prices.

Detached homes sold in the $325,000 to $349,999 price range were most popular last November, accounting for 10 per cent of the sales.

West Kildonan contained the most detached homes sold, followed by Sargent Park.

Osborne Village took the lead for most condos sold in Winnipeg, followed by River Park South. The latter neighbourhood saw one condo sell for at least $1 million — the third to sell in such a range this year.

Five detached homes sold for $1 million or higher in November.

The $150,000 to $174,999 price range was most popular for condo sales last month.

The total dollar volume of house sales in November just surpassed $285 million, a four per cent drop from last November and 13 per cent below the five-year average.

Prefontaine expects the first months of 2024 will look similar to the last of 2023. The market should get busier in the spring regardless of interest rates, she said.

“I think 2024 is going to be an exciting year,” Prefontaine remarked. “I think there is hope in the future.”

A decrease in interest rates would help the housing market, she said.

gabrielle.piche@winnipegfreepress.com