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May 2018 Real Estate Market Highlights

June 11, 2018 By Winnipeg Real Estate Leave a Comment

May sales were down from the best May on record in 2017 when close to 1,700 transactions were processed on WinnipegREALTORS® MLS®. The 1,510 sales recorded in May 2018 decreased 11% from the same month last year and are down 4% from May’s 5-year average sales numbers and 1% from the 10-year average. Dollar volume of $458.4 million decreased 8% from May 2017.

New listings coming on the market in May decreased less than 2% while inventory at the end of the month increased 3% to 5,103 listings. When broken down into the two main property types of residential-detached and condominiums, inventory sits at 2,750 and 973 respectively. If no new listings were to come on the market this inventory would run out in roughly two and one-half months for residential-detached properties and five months for condominiums.

Year-to-date sales of 5,021 are down less than 8% from the two busiest years on record in 2016 and 2017 but slightly ahead of the previous three years from 2013 to 2015. Dollar volume of $1.488 billion is 6% off last year’s $1.58 billion total.

Despite some slowdown in market activity in May and year-to-date, there are positive indicators to report on in May.

Average days to sell in May for residential-detached and condominiums properties were less than four and five weeks respectively. Sales of homes in the $300,000 to $349,999 price range were particularly fast-paced with average days to sell of only 16 days. Condominiums, predominantly new units, sold on average in 17 days in the $350,000 to $399,999 price range.

The average sales price in May in comparison to May 2017 was up modestly too for both residential-detached and condominiums.

An indicator of demand outstripping supply for residential-detached sales for certain MLS® areas was the number of homes selling for above list price reached 28%, a 2 percentage point increase from May 2017.

This reality is borne out by a number of neighbourhoods dispersed throughout Winnipeg which had sales numbers exceeding the number of listings remaining for sale at the end of the month. The same situation does not exist for condominiums with just 9% of condominiums in May selling for above list price. There is a healthy supply of condominium listings available to choose from throughout the Winnipeg Metropolitan Region.

The overall absorption rate for MLS® listings going into June is less than 3 and one-half months however one area to watch for is the build-up in condominium inventory. Condominium inventory is up 10% from last year at close to 1,000 listings.

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This information is courtesy of:

The Michael Leclerc Home Selling Team
Royal LePage Top Producers
Winnipeg MB
Phone: (204) 792-6453

April 2018 Winnipeg Real Estate Market Highlights

May 9, 2018 By Winnipeg Real Estate Leave a Comment

Sales of 1,283 were more spring-like in numbers as only down 1% from last April and up nearly 2% over the 10-year average for this month. New listings of 2,621 in April increased 7% from the same month last year while the existing inventory at month end of 4,550 was up nearly 4% over 2017.

MLS® dollar volume of nearly $390 million just edged out last year’s total. Year-to-date dollar volume climbed over $1 billion and is less than 5% off last year’s first four month total dollar volume. Year-to-date sales of 3,511 are down 6% from the same period in 2017.

April’s average residential-detached sales price was just under $330,000, a modest increase over April 2017. Helping elevate this average sales price was a home in East Fort Garry which sold above list price for $2.6 million and three other million dollar plus home sales in the Waverley West MLS® area.

The April condominium average sales price of $236,027 was down slightly from April 2017. Condo sales of 165 were ahead of last April’s total by 5%. The highest percentage increase of all MLS® property type sales in April was duplexes at 50%.

A true test of this year’s return to more seasonal sales activity will be this month as last May had the highest monthly sales ever at just under 1,700 sales. Only time will tell but there are positive signs as a result of solid market metrics in April.

While there are more listings on the market going into May than there were last year this does not mean they are all evenly distributed amongst varying property types and areas within the Winnipeg Metropolitan Region. Residential-detached listings of nearly 2,400 lean towards tighter market conditions based on expected strong sales the next few months and condominium listings of almost 900 show a more elevated inventory and more opportunities for buyers to with longer days on market to sell and greater selection available.

One clear difference too between these main property types is the percentage of listings selling for above list price in April. 28% of residential-detached properties sold for above list price compared to 9% for condominiums.

This information is courtesy of:

The Michael Leclerc Home Selling Team
Royal LePage Top Producers
Winnipeg MB
Phone: (204) 792-6453

Listings and sale prices up, sales down in Fort Garry, Fort Richmond

April 16, 2018 By Winnipeg Real Estate Leave a Comment

Lovely starter home on a quiet low traffic street. Click image for more info or call Michael Leclerc 204-792-6453.

MLS listings and sale prices went up while sales went down in the month of February 2018 for the Winnipeg neighbourhoods of MLS areas East Fort Garry, Fort Garry, Fort Richmond, Waverley Heights, West Fort Garry, and Wildwood.

The average selling price of homes went up approximately 4.64% with the average being $317,148 compared to $302,431 in February 2017. On average a residence took 28 days more to sell compared to the average of 14 days in February 2017.

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There were 19 active listings in Winnipeg MLS areas 1J, 1JW, 1K and 1L at the end of February 2018 as compared to 16 at the end of February 2017, and 10 homes sold in February 2018 as compared to 15 in 2017. The sales-to-listing ratio decreased from 90.25 percent in February 2017 to 49 percent in February 2018.

The highest price paid in 2018 for a home in the neighbourhoods of East Fort Garry, Fort Garry, Fort Richmond, Waverley Heights, West Fort Garry, and Wildwood was $465,000 for a home on Thatcher Drive. The lowest sale price belonged to a home on Crescent Drive N, which closed at $162,000.

Total active listings February 2018: 19
Total active listings February 2017: 16

Total homes sold February 2018: 10
Total homes sold February 2017: 15

Sales to listing ratio February 2018: 49%
Sales to listing ratio February 2017: 90.25%

It pays to know the average price of homes for sale in your neighbourhood, as well as that of homes that have sold, including both over-list and under-list sales. We track all Winnipeg neighbourhoods daily, which allows us to more accurately set list prices on the homes we sell, while also making intelligent offers. If you would like a Free Home Value Appraisal in East Fort Garry, Fort Garry, Fort Richmond, Waverley Heights, West Fort Garry, Wildwood. Please Contact Us or Call (204) 792-6453. We track the market closely and you can too with Winnipeg Market Tracker.

Average days to sell a home February 2018: 42
Average days to sell a home February 2017: 14

Average sale price February 2018: $317,148
Average sale price February 2017: $302,431

Lowest sales price February 2018: $162,000 Crescent Drive N
Highest sales price February 2018: $465,000 Thatcher Drive

This information is courtesy of:

The Michael Leclerc Home Selling Team
Royal LePage Top Producers
Winnipeg MB
Phone: (204) 792-6453

March 2018 Winnipeg Real Estate Market Highlights

April 13, 2018 By Winnipeg Real Estate Leave a Comment

Winnipeg Real Estate Market Highlights for March 2018.

Sales in March resulted in a slower first quarter especially in comparison to the two best years on record in 2016 and 2017. Sales of 2,228 are down over 8% from the first 3 months in 2017, and 4% over the 10-year average. March sales of 974 decreased 12% from March 2017, and 5% over the 10-year average. March new listings at just under 2,100 were down to a lesser extent at 5%.

Current inventory of MLS® listings going into the second quarter is almost identical to last year. It sits around 3,900 listings with a modest percentage gain of residential-detached listings available while condominium listings slipped slightly.

It is fair to say while market fundamentals are firmly in place in the local market, new mortgage rules combined with higher mortgage rates in the last year have made it more difficult for some buyers to purchase their desired property. This not only applies to first-time buyers, but to existing home owners who instead of listing their property have decided to stay put as the tougher qualifying environment keeps them from moving ahead with a new purchase.

As in other real estate markets across the country, strong year-end sales within the Winnipeg Metropolitan Region in November and December in advance of the January 1, 2018 new stress test on uninsured mortgages would have had a pull-forward effect on sales happening this first quarter.

The second quarter is by far the busiest quarter of the year. We will be seeing if April brings back some of the market that was lost in the first quarter.

Further analysis of both residential-detached and condominium properties provide a few observations.

While condominiums saw sales drop 14% in the first quarter, they are only 1% below the 10-year average. The average sales price of $240,740 was less than 2% below the more active first quarter of 2017.

Residential-detached, the most expensive property type class and one most vulnerable to recent policy-related moves to slow down the housing market, experienced an 11% decline over the 2017 first quarter, and a 7% drop off in same period sales over the 10-year average. The average sales price was higher however at $327,959 compared to $319,549, up nearly 3%, and the average days to sell was 29 versus 27 in 2017.

It is also worth noting the ratio of total sales price, to total list price, edged up to 99% in the month of March. This high percentage ratio can be attributed in part to a number of MLS® areas seeing whatever listings they had available sell quickly.

This information is courtesy of:

The Michael Leclerc Home Selling Team
Royal LePage Top Producers
Winnipeg MB
Phone: (204) 792-6453

Reinforcing a Strong and Prudent Regulatory Regime for Residential Mortgage Underwriting

October 18, 2017 By Winnipeg Real Estate Leave a Comment

If you have been waiting to hear what the Guideline B20 lending changes will be, the wait is over. Published today are the new guidelines which go into effect January 2018.

A brief summary of the changes are:

A new minimum qualifying rate, or “stress; test” for uninsured mortgages (mortgages where clients are putting 20% or more down).

Guideline B-20 now requires mortgage clients to qualify on a minimum rate based on the greater of the five year BOC rate or the contract mortgage rate +2%.

Lenders are now required to enhance their loan-to-value (LTV) measurement and limits so they will be dynamic/fluid and responsive to risk.

This means lenders must establish and adhere to appropriate LTV ratio limits that are reflective of risk and can be updated as housing markets and the economic environment evolve.

Office of the Superintendent of Financial Institutions (OSFI) is placing new restrictions on lending arrangements that appear designed to circumvent loan-to-value (LTV)limits. ie Mortgage Bundling

Lenders are prohibited from arranging mortgages with other lenders, including the combination of a mortgage and other lending products in any form that exceeds the institution’s maximum loan-to-value This applies to limits in its residential mortgage underwriting policy and any requirements established by law.

To read the announcement in full-http://www.osfi-bsif.gc.ca/Eng/osfi-bsif/med/Pages/B20_dft_nr.aspx

The immediate effect will be the “stress test” for conventional mortgages, meaning those where your buyer has 20% down payment or more. Currently those clients can qualify at contract rate (the actual rate of their mortgage), effective 2018 they will have to qualify like they are paying 2% higher. As an example: In order to buy a $300,000 home today you would have to qualify to pay $1450/m (today’s rate at 3.2% for example), effective January 2018 you will have to qualify like you are going to pay $1780/m (3.2% +2%=5.2%)… essentially removing $330 worth of monthly buying power. To put it another way; if you qualified for $300,000 today, all things being equal you would qualify for about $250,000 next year. It’s significant.

Have questions, please call, text or email me anytime!

This information is courtesy of:

The Michael Leclerc Home Selling Team
Royal LePage Top Producers
Winnipeg MB
Phone: (204) 792-6453

– The Mortgage Rules Have Changed Again! – Learn how to take advantage and challenge the system. Click Here!

– The Mortgage Rules Have Changed Again! –
Learn how to take advantage and challenge the system. Click Here!