There's some encouraging news for those looking to sell property in Winnipeg — a new quarterly report issued in July by a local real estate company shows that house prices throughout Canada, including Winnipeg, are on the rise.
The report collected information from more than 250 neighborhoods throughout the country. According to the survey, the average price of detached bungalow homes in Canada increased by 2 percent in the second quarter of 2014, and the price of standard condominiums rose 5.3 percent. Two-story homes also increased in price by 2.4 percent. Within the same timeframe, the real estate company reported that the average home price rose between 3.9 percent and 5.2 percent. This increase prompted the forecasting of a 5.1 percent price increase by the end of the year.
The report goes on to state that these year-to-date numbers are mirroring historical averages, although this year has demonstrated a higher-than-usual demand for condominiums. The overall increase throughout Canada is being attributed to a number of factors, including a growing middle class and a strong economy. In Edmonton, for example, average condo prices climbed 7.8 percent this year to $236,429, and two-story home prices rose 3.8 percent to $372,112. However, detached bungalow prices declined slightly, dropping 0.2 percent to settle at $350,401.
Along with the report, the authors issued a press release that stated chronic housing supply shortages are beginning to drive price spikes in Canada's major cities. Winnipeg and Edmonton are prime examples of cities in which these spikes are most pronounced, along with Calgary and Toronto. Price appreciations have been somewhat more moderate in other markets throughout the country, however.
The news release went on to state that housing prices in Canada are expected to remain closely tied to the country's rate of economic growth throughout 2015, although price increases in Canada's largest cities are likely to taper off as smaller markets begin to experience their own rises in housing prices.
Overall, the residential real estate market appears strong in Winnipeg and in most parts of Canada. We will keep tabs on these trends and provide further updates as time goes on.