By Peter Squire
While the focus of this column is on condominiums — as they were clearly the comeback story of 2020 — it is important to share that 2021 ushers in a new brand for our Board. We are now the Winnipeg Regional Real Estate Board (WRREB). What began in 1903 as the
Winnipeg Real Estate Exchange evolved to become the Winnipeg Real Estate Board (WREB) for many years until it adopted its WinnipegREALTORS® operating name in 2007. Our new branding reflects the regional landscape of our 2,000 REALTOR® members.
“Changing our operating name to the Winnipeg Regional Real Estate Board speaks directly to the changing housing landscape and our leadership in the real estate industry including market and data reporting, technology products and services, innovation and REALTOR® professionalism. As we enter 2021 with our new brand, we do so with excitement and optimism,” said Marina R. James, CEO of the Winnipeg Regional Real Estate Board. “2020 was a year of dynamic regional housing sales growth and we are now ready to meet 2021 as a unified force for positive growth in the real estate industry and to support those looking to buy or sell property.”
And speaking of condominiums in relation to the region WRREB represents, while the many significant rural areas performed exceptionally well in 2020 — and were dominant in MLS® vacant land property type sales activity and rural-based property types such as resort properties and farms — condominiums are still the main preserve of the City of Winnipeg as it had 85 per cent of total condominium sales.
Last year proved most challenging for condominiums in the heart of the pandemic when the economy was in shutdown mode. Listings dropped off considerably and buyers held back as well. As has been
well documented, not just here but across the country, single family properties became the property of choice and fared better initially than condominiums in weathering the COVID-19 storm.
At mid-year, condominium sales (compared to 2019) were down 17% and even higher percentages compared to better first-half previous years (e.g. down 26% to 2014). On the other hand, single-family had already recovered from the sharp downturn in April and May with exceptional June results lifting it back to even with 2019.
The second half of 2020 can be viewed as the march to recovery for condominiums, and with many adjustments taking place in the industry under new health protocols, REALTORS® really stepped up to make it easier and safer for buyers to purchase condominiums as there was still a good supply of affordably priced listings to purchase..
July kick-started this recovery with a 29% increase over the same month in 2019 with 223 sales — best monthly condo sales performance ever. This month was followed up by three more months of over 200 sales with September and October recording increases of 38% and 37% respectively. October is significant in that it was the point where condominium sales caught up with year-to-date activity in 2019. The two final months capped off a very strong finish with sales of 149 each month. December is particularly worth highlighting as the increase was 62% over December 2019 and sales came close to matching the number of listings entered in December.
The record sales activity in the second half of 2020 has resulted in the highest number of sales ever at 1,847. It supplants the 1,798 condo sales transacted in 2014 and is ahead of the 1,750 sales in 2019 by 5.5%. Contrary to sales, listings never did catch up to 2019 as they were down 8%. There were 3,599 condo listings in 2020 compared to 3,912 in 2019.
The average condominium sales price hardly budged at all as it was up less than 1% from $238,088 to $240,060.
There are incredibly favourable affordable condominium prices in the WRREB market region with half of all condominiums sales in 2020 falling under $220,000 and 77% at or under $300,000. Four condo sales went for over $1 million with the highest on record going for $1,799,000.
The most active price range for condominium sales remains the $150,000 to $199,999 category. However, the two next higher price ranges of $200,000 to $249,999 and $250,000 to $299,999 are gaining traction with a higher percentage of total market share than previous years.
No better example of contrasting condo prices to single-family homes can be found than in the MLS® area that represents Tuxedo in Winnipeg. Before talking prices, it is worth mentioning that Tuxedo had a great year for condominium sales of 76, six more than 2019 and 15 more than the 61 single-family homes sales. The average condominium price was $278,817 whereas the average single-family home price was $1,000,721. If you compare their median prices (the midpoint price of all sales) there is still a major gulf in prices. The median price for Tuxedo condo sales in 2020 was $225,000 and $833,000 for single-family homes.
While listings were down in 2020, conversions of what listings were available to sell were higher than 2019 (51% versus 45%) and as a consquence made it possible to realize higher sales. A good example where listings were quite similar to 2019 but sales were noticeably higher is North Kildonan. It went from a 44% conversion of sales-to-listings ratio in 2019 to 75% in 2020. This resulted in 18 sales compared to 11 the year before.
Osborne Village is well ahead of any other MLS® area that WRREB tracks for condominium sales activity. It finished the year up 3% over 2019 with 149 sales. The leader in rural Manitoba is the Winkler/Morden MLS®area with 69 sales. Not all MLS® areas had exceptional years, such as River Park South and the downtown. The downtown finished the year with a total of 69 sales which is only a 31% conversion of the 222 listings that were available. The downtown has had better years, such as in 2017 when it had 118 sales with a conversion of sales to listings of 49%.
Heading into 2021, knowing the vaccine is on the way is encouraging news for condominium sales
activity to remain strong, and offers WRREB buyers an excellent housing option given the outstanding affordability that they offer.
Peter Squire is Winnipeg Regional Real Estate Board’s Vice-President, External Relations & Market
Intelligence.