July not quite as spry as 2014 - MLS® sales down six per cent
It is no easy feat to overtake a record July set in 2014. Nonetheless, July 2015 sales were still brisk. At nearly 1,400 sales, they are six per cent higher than the 10-year sales average and third highest for this month ever. If not for condominium sales lagging behind in July as well as this year-to-date, July 2015 would have narrowed the gap in MLS® sales from last July and been even more impressive.
Residential-detached sales continue to perform well in comparison to 2014. They are only down two per cent from last July and are up three per cent year-to-date. On the other hand, condominium sales are off 22 per cent in July and 17 per cent for the year.
“We are a little bit surprised by how condominium sales are not rebounding from a slow start this year,” said WinnipegREALTORS® president Dave MacKenzie. “One thing I know for sure is it has nothing to do with lack of supply. With 939 condo listings available at the end of July, it is over double what was available at the end of July 2013 and up 35 per cent from last July.”
July’s MLS® dollar volume at $384 million is just one per cent down from July 2014 despite sales being six per cent higher that year. Year-to-date dollar volume is one per cent ahead of 2014 at $2.17 billion. Year-to-date MLS® sales of 7,896 are down less than one per cent from 2014.
“Overall our sales are very consistent with last year,” said MacKenzie. “Although you always need to appreciate and understand not all MLS® areas and property types, or sales and listings within our different price ranges behave the same way. This is why you need to be talking to a REALTOR® about your specific market needs and how the current market is affecting you.”
While affordability remains a hallmark of Winnipeg’s real estate market, July results show first-time buyers were not as active compared to last year. In examining the three key affordable house price ranges from $150,000 to $299,999, there were 80 fewer residential-detached sales. This number represents a 13 per cent decrease from July 2014.
Condominium sales showed a similar downward result for the two price ranges from $150,000 to $249,999 with 23 fewer sales from 2014. However the next higher price range from $250,000 to $299,999 showed an increase of six sales over last year.
But we must remember that MLS® sales in 2014 set records, so this year’s numbers are still healthy.
“We should never be complacent about our market being more affordable than other major markets in the country.” said Mackenzie. “Issues we have identified such as land transfer taxes, property taxes and other costs of home ownership affect Manitobans’ ability to purchase a property.”
The most active price range in July for residential-detached was $250,000 - $299,999 (22 per cent of sales), followed by the $300,000-$349,999 (16 per cent) and $200,000-$249,999 (16 per cent). Another 22 per cent of sales were split evenly in the $150,000 - $199,999 and the $350,000-$399,999.
Average days on market for residential-detached sales were 33 days, five days slower than July 2014. The highest priced residential-detached sale was $1,431,000 and the least expensive sale was $30,000.
The busiest condo price range in July was $150,000 - $199,999 (29 per cent of sales), followed by the $200,000 -$249,999 (22 per cent) and the $250,000 - $299,999 (18 per cent). Days on market for condo sales was 41 days compared to 34 days last year with the highest priced condo selling for $880,000 and the lowest priced sale at $87,500.