Mosquitoes have become an endangered species inWinnipegthis year … but a new bug has appeared – theWinnipegreal estate sales bug! Sales in August are on par with the best August ever in the real estate Association’s 108 year history.
In August of 2005 there were 1293 sales – and this August we registered 1290MLS® sales.
But the dollar volume isn’t even close – in 2005 the 1293 sales amounted to $169 million in dollar volume – this year’s 1290 sales registered $297 million – so virtually the same number of sales - but a staggering 76% increase in dollar volume in 6 years.
With concern about the world economy; a potential 3rd stimulus package south of the border and rampant fluctuations in the stock market and personal retirement investments, theWinnipeg real estate market continues to be the steadiest economic engine on the tracks.
“At the start of the year we looked at all the economic indicators – many of which were pretty negative, or at least tough to interpret because of all the government participation in the economy. But we still couldn’t see any reason for our local real estate market to suffer any correction.” said Ralph Fyfe, President of the WinnipegREALTORS® Association.
“We predicted at our January forecast breakfast that Multiple Listing Service® (MLS®) home sales would rise by up to 2%, home prices would go up 7-9% and dollar volume through theMLS® would increase 9-11%.
“But looking at the numbers to the end of August … we may have been too conservative in our estimates. Maybe the negativity around us at the time made us too cautious. Both our August numbers and year-to-date numbers have exceeded our predictions.” he went on to say.
In August, sales were up 27% from August of 2010 (1290 vs. 1016); dollar volume was up 35% ($296 million vs. $220 million); and the 1784 listings added to theMLS® in the month surpassed last August’s listings by 13% (1578 in 2010).
And the record August numbers only added to the year-to-date positive statistics. From January to the end of August, listings through theMLS® are up almost 3% (13,551 vs. 13,203); sales are up 6% (9196 vs. 8663) and dollar volume is up 11% at $2.14 billion ($1.9 billion in 2010 year-to-date).
“So with sales up 6%, home prices up 8% and dollar volume up 11% - our projections are definitely on track. I can’t help but believe that all the optimism evident in major projects like the new airport; CentrePort; the museum; the new football stadium; the return of the Jets … and all the other exciting developments in our City and Province have provided consumers with a confidence that is playing out in the real estate market.” Fyfe concluded.
The most active price ranges for residential detached sales continue to be 200,000 – 250,000 (20% of August sales) and $150,000-$200,000 (19%) respectively. Average days-on-market for single-detached homes was 28 days – down from 30 days in August of 2010. 10% of August sales were over $500,000 while 7% were under $100,000.
The most active price ranges for condominiums were $150,000 - $200,000 (35% of sales) followed by $100,000 - $150,000 (26%). Condos averaged 30 days on the market – down from 34 days last August.
From the national perspective, Gregory Klump, economist with The Canadian Real Estate Association reports that, “Interest rates will remain lower for longer, and the prevailing economic forecast calls for further modest growth, so the housing market will remain an oasis of stability compared to further financial market volatility.”