By Peter Squire
Active listings play a key role in the real estate market. Winnipeg is currently experiencing a limited supply of active listings for homebuyers to choose from in some neighbourhoods. If you’re thinking of selling your home, talk to your REALTOR® about trends in your area. Now may be the perfect time to sell!
Sales of 1,377 decreased 19% in May compared to the same month last year while just over $400 million worth of dollar volume transactions fell 23% compared to May 2019. The 2,428 new listings entered in May were down 21% from last year. There are still 4,621 listings available for sale in June.
“May market activity was clearly impacted by COVID-19 at the outset of May with MLS® sales down similar to the 30% drop off in April sales by mid-month,” said Catherine Schellenberg, president of WinnipegREALTORS®. “It is worth noting, however, that recovery took hold in the second half of the month with sales from May 20-26 actually outpacing the number recorded the same week in May 2019. Listings also saw an improvement over April with the percentage decline cut in half.”
Year-to-date MLS® sales are at 4,884, less than 8% off the pace set in 2019 while dollar volume of $1.44 billion is down close to 10% from the same period last year. One in two lsisting or 50% have sold this year and that is higher than 2019 when 47% of total MLS® listings sold.
With the exception of condominiums — where COVID-19 has created a deeper setback in sales — for those sellers and buyers engaged in the market, many performance metrics are in line with May 2019. Residential-detached homes had slightly more above list price sales at 24% than last May and price levels trended higher as well based on CREA’s MLS® Home Price Index prices. The equivalent of 64% of new listings entered in May sold, and this compares favourably to 63% in 2019 and 59% in 2018.
“To use a sports analogy, and why not hockey since our Winnipeg Jets may well be playing again this year, you have less participants in the market due to reasons we all know, yet the ones in the lines you put on the ice are delivering similar results,” said Schellenberg.
Speaking of less numbers on what is normally the busiest time of year, residential-detached home listing inventory is thin in a number of Winnipeg MLS® areas. A return to more spring market conditions in June, with a good injection of new listings coming on the market, will be welcome.
There are too many neighbourhoods spread throughout the city to mention, but the common denominator for most is having more sales in May than listings remaining at month end. Waverley Heights, for example, had 6 sales in May with only 3 listings available for sale going into June, while St. Norbert had 6 sales as well, with only 2 listings for sale this month.
While Winnipeg had the tightest market conditions for residential-detached homes in comparison to the outlying rural MLS® areas, the latter represented nearly 36% of total residential-detached sales.
“This month in particular shows the extent of WinnipegREALTORS® market region beyond Winnipeg, with residential-detached sales gaining an increasing market share of total sales,” said Schellenberg.
“Vacant lot sales — which are experiencing double-digit percentage increases this year — are largely rural in make-up with only 3 of the 68 lots sold in May located in Winnipeg,” she added.
Residential-detached sales decreased 18% from May 2019, while condominiums saw a decline of 41% compared to the same month last year.
Residential-detached sales were equally divided at 35% between the $250,000 to $299,999 and the $300,000 to $349,999 price ranges, with another 13% occurring from $200,000 to $249,999. Five sales went for over
$1 million — with the highest selling for $1,525,000. The lowest sale price was $15,000.
The most active price range for condominium sales was from $200,000 to $249,999 at 23%. Just slightly behind was the $100,000 to $149,999 price range at 22%. The usually most active price range of $150,000 to $199,999 was third at 18% of total sales. The highest sale price for condos in May was $488,920.
“As we are now in the second phase of reopening Manitoba’s economy, REALTORS® will continue to follow and adhere to Manitoba health directives and safe practices to ensure buyers and sellers can transact safely,” said Schellenberg.
“All markets are local and can vary within a market as large and diverse as WinnipegREALTORS® market region,” said Marina R. James, CEO of WinnipegREALTORS®.“You need to talk to your REALTOR® about how your particular real estate needs can be met to your satisfaction.”
REALTORS® have expanded their business models with best practices including virtual showings, digital signatures and open houses offering new measures to assist buyers and sellers navigate the real estate process safely and professionally. For more information on how the real estate market in your area is performing, contact your REALTOR®. Visit our website at www.winnipegrealestatenews.com for all MLS® listings, to find a REALTOR®, monthly market statistics, a mortgage calculator and other real estate resources.
Peter Squire is WinnipegREALTORS® Vice-President, External Relations & Market Intelligence.