For those living in or near Winnipeg, this spring's real estate numbers offer hope for a housing market that's been off to a slower start so far this year. According to WinnipegREALTORS, a professional real estate organization, the city's housing market experienced a massive surge in both buying and selling this spring — a welcome rebound after the market struggled to take off toward the beginning of 2014.
The spring was marked by a frenzy of bidding as purchasers rushed to compete over a surging number of available properties. In May, Winnipeg saw more than 4,500 active listings, a 22 percent increase from last year. The city also saw approximately $438 million in real estate sales from 2,755 transactions — both new record amounts. The realtor's association also reported that the average home sale price rose to more than $300,000 for the first time in the region's history, reaching $300,786. Three homes sold for more than $1 million, with the most expensive selling for $1.82 million.
Approximately one-third of Winnipeg's residential detached homes sold above their listing prices in May, and an additional 10 percent of the properties sold at their asking prices. According to a spokesperson for the organization, while numbers for June are not yet in, it's expected to be another strong month for real estate sales in Winnipeg. However, the Canadian Real Estate Board has warned that nationwide, more buyers might begin to adopt a survival-of-the-fittest approach to a more expensive home market later this summer, leading them to walk away from multiple bid situations or wait until properties have been on the market for a while before bidding.
If a summer slowdown does occur, industry professionals say it would be a common seasonal occurrence — the slowest rates of sale are usually seen during July and August — and would not be completely unexpected. Although bidding competitions may start to decline somewhat, they are still occurring at a fairly high rate, and another noticeable increase in listings and sales is expected again for the fall.
Overall, this analysis by WinnipegREALTORS indicates some very good news for the local real estate market, including residential, commercial and condominium properties. We will continue to monitor and analyze market trends as the year goes on.