Secret’s out on hot housing market

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This article was published 16/07/2018 (2674 days ago), so information in it may no longer be current.

It’s a seller’s market in Winnipeg.

That’s according to the latest Royal LePage House Price Survey, released this past Tuesday, which shows the aggregate home price in the city has seen an uptick during this year’s second quarter.

Not only that, but homes in some areas of the city are seeing multiple offers and selling above asking price, according to the report.

Across the board, Winnipeg saw an aggregate home price increase of 1.8 per cent — up to $293,932 — in the second quarter of 2018.

That’s expected to continue to rise during the remainder of the year, with a projected quarter-over-quarter increase of 1.3 per cent, up to $297,817.

“Home prices continue to witness stable growth in Winnipeg, as many hyper-local segments heat up and transition to a seller’s market, spurred by interest from within the city and abroad,” Michael Froese, Royal LePage Prime Real Estate managing partner, said in a written statement.

Notably, the median price of two-storey homes and condominiums saw a significant increase, up 3.4 per cent and two per cent year-over-year (to $314,085 and $250,114) respectively.

Meanwhile, the aggregate price of bungalows dropped slightly, down 0.2 per cent year-over-year to $281,736.

According to Froese, the impact of the Winnipeg Jets’ deep run in the NHL playoffs — which was a boon to downtown businesses — has been felt even in the city’s real estate market.

“The recent success of the Winnipeg Jets brought many new faces into the area and helped to showcase the region’s vibrant communities and fantastic quality of life, giving them a taste of what it would be like to live in the city,” Froese said.

“When coupled with how affordable property is in Winnipeg, the decision to buy a home in the region has become very easy for many.”

In certain areas of the city, a flurry of market activity has temporarily depleted inventory levels, further fuelling the seller’s market in those neighbourhoods. Consistent with the rules of supply and demand, as the inventory in these areas decreased, home prices trended in the opposite direction. In other words, not only were home prices inching north, but inventory levels were trending south.

In some areas of the city, it’s reportedly common for homes to receive multiple offers above asking price. And in those neighbourhoods, inventory levels reached a three-year low in the second quarter of 2018, according to the report.

But on the whole, inventory levels are rising across the city and those neighbourhoods experiencing a shortage should soon see increasingly more homes on the market.

In June 2018, for example, listings increased one per cent over the same month the previous year. The current inventory listing in the city (5,206) at month’s end marks a six per cent uptick over 2017 figures.

“Inventory levels are rising. We expect home values to continue to steadily climb over the next quarter as competition continues to put upward-pressure on pricing,” Froese said.

“The secret is out. Many people from within the city and abroad now realize that when it comes to real estate and sheer affordability, Winnipeg is good and that sentiment likely will remain unchanged in the immediate future.”

Know of any newsworthy or interesting trends or developments in the local office, retail, industrial or multi-family residential sectors? Let us know at business@freepress.mb.ca.

ryan.thorpe@freepress.mb.ca Twitter: @rk_thorpe