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This article was published 8/2/2011 (3581 days ago), so information in it may no longer be current.
WINNIPEG'S resale homes market produced one of the highest returns on investment in the country over the past 11 years, according to a new report from RE/MAX Canada.
The real estate firm's Housing Barometer Report released Tuesday compared average price increases in 18 major Canadian cities between 2000 and 2010 and calculated the annually compounded rate of return for each market.
It found Winnipeg had the fifth-highest rate of return at 9.01 per cent, with average selling prices jumping from $88,553 in 2000 to $228,706 in 2010.
The only cities with better returns were Regina (9.56 per cent), Edmonton (9.25 per cent) and Saskatoon and Quebec City (both at 9.20 per cent).
The national average was 6.82 per cent.
By comparison, data supplied by Jory Capital in Winnipeg shows that between end of 2000 and the end of 2010 -- a 10-year period -- the S&P/TSX Composite Index showed a rate of return of 88 per cent, or 6.51 per cent annually.
The Re/Max report said one of the main driving forces behind the escalation in house values in Winnipeg was the combination of high demand and tight supply, which sparked multiple offers for many properties in recent years.
"By far the tightest market in the nation was Winnipeg, where sellers ruled the roost for 85 per cent of the decade," it said. "January 2000 marked the last clear-cut buyer's market in the city..."
Alan Ediger, of Re/Max Executives Realty in Winnipeg, said the escalation in property values is good news for homeowners, but not so good for homebuyers who end up paying more for a home, especially first-time buyers.
But even with prices escalating at one of the fastest paces in the country, Ediger said homes here are still more affordable than in most other major Canadian cities.
He said some of the factors that have helped fuel the strong demand for homes in Winnipeg are the influx of new immigrants, many of them skilled workers who could afford to buy a home, and historically low interest rates, which make buying a home more affordable.
The report also said Winnipeg's resale market is off to another strong start in 2011, thanks to a strong economy and low unemployment levels.
Don't get us started on housing starts
The RE/MAX Housing Barometer Report was one of two housing-related reports released Tuesday. Canada Mortgage and Housing Corp. also released the January housing-start numbers:
Housing starts plummeted by more than 50 per cent in the Winnipeg area during the first month of 2011 -- 122 versus 248.
The downturn was confined almost entirely to the multi-family side of the market, with seven starts versus 132 in January of last year. The number of single-family starts was virtually unchanged -- 115 versus 116.
The decline in starts was concentrated in the city of Winnipeg. The number of starts in the 10 surrounding municipalities grew by 21.7 per cent to 28 from 23 a year earlier.