Manitoba housing market begins to shift

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This article was published 09/07/2022 (1349 days ago), so information in it may no longer be current.

Manitoba has more houses on the market, meaning fewer bidding wars.

June saw 3,477 listings — a 25 per cent increase from June of 2021.

“Listings came on strong in June and are having a positive impact on loosening up what has been a supply-challenged market,” Akash Bedi, the Winnipeg Regional Real Estate Board’s president, said in a news release.

Still, over half of single family home purchases — 54 per cent — sold above their asking price in June, indicating several bidders.

It’s a decrease from the 67 per cent and 64 per cent of April and May, respectively.

“While all indications are that we are still in a seller’s market, a shift is happening where buyers have more choices… and sellers will have to be more realistic about their expectations on prices,” Bedi said.

The number of homes to sell below asking price has been increasing. Last month, 37 per cent sold below list price, compared to 25 per cent in April and 28 per cent in May.

The average single family home cost $426,541 in June — down from $454,832 in May.

It’s still more than $30,000 above June 2021’s average single family home price of $395,576.

The inventory spike is noticeable in communities across Manitoba. The end of June offered 60 homes in Waverley West. A year earlier, just 36 were available.

The number of Tuxedo houses up for grabs tripled year-over-year — from seven to 21 — and places available in Amber Trails sextupled: 24 were open last month compared to four at the end of June 2021.

Beyond Winnipeg’s borders, the RM of Ritchot posted 44 houses for sale, compared to June 2021’s 26, and the RM of West St. Paul had 31 open, compared to 16 the year before.

Year-to-date sales are down 21 per cent (2021 posted the two best sales months in the Winnipeg Regional Real Estate Board’s history.

“I have said all along that 2022 cannot compete with the record-shattering year of 2021,” Peter Squire, the WRREB’s head of market intelligence, wrote in an email.

“We are in a higher interest rate environment now with inflation running rampant.”

Still, the current year’s sales — 8,052 — are up five per cent over the five-year average. Nearly 1,800 of those sales happened last month.

Manitoba’s housing market is “in reach” for home buyers compared to Canada’s more expensive locales, Squire said.

Condominium purchases have soared 22 per cent over the five-year average.

“The improvement in condominium conversions shows buyers are looking for alternative property types,” Bedi said.

The average condo cost $278,266 in June, up from May’s $261,910 and well beyond June 2021’s $251,659. A four-level Fort Garry condo sold for $1.2 million last month.

The average attached house price was $339,230 in June.

The Bank of Canada has progressively raised its key interest rate to combat inflation. In turn, it raises variable mortgage rates, making home ownership more expensive for some.

“I have not had a chance to see how prices are trending in July but suspect the average single family home price will settle down as stated from what we saw in May,” Squire wrote.

July’s first week saw 326 sales, compared to 330 in July of 2021.

gabrielle.piche@winnipegfreepress.com