Dollar volume increases despite slight drop in home sales

Three million-dollar-plus home sales in October have helped push sales closer to the all-time record of $2.42 billion in MLS® transactions registered in 2008, according to WinnipegREALTORS®.

One of the homes sold for $1.2 million, the board reported in its October statistical press release.

“Positive consumer sentiment combined with the opportunity to take advantage of historically-low mortgage rates is fuelling higher-end sales activity in our local market,” said WinnipegREALTORS® president Deborah Goodfellow.

“Given what we faced earlier this year, the MLS® results are encouraging and show consumers are confident in ownership of housing as a solid long-term investment,” she added.

So far this year, there have been 12 million-dollar-plus home sales and one million-plus condominium sale, which is five more than the previous highest yearly total that was achieved last year.

In addition, October’s dollar volume was more pronounced in the $200,000 to $250,000 price range, which represented a 30 per cent increase over the same month last year.

Dollar volume in the last month was over $200 million, which represented a 10 per cent increase over October 2008.

Goodfellow said the trend in the Winnipeg resale market is consistent dollar volume strength.

Dollar volume has increased despite a slight softening of home sales when compared to 2008. MLS® unit sales were virtually identical to October last year at 978 vs. 981. 

Year-to-date MLS® sales are down six per cent from the same period in 2008 to 10,726 units.

Thirty-seven per cent of the active MLS® inventory sold in October, with 35 per cent of homes selling for above list price — an improvement over the same month last year.

“Even with rising house prices,” said Goodfellow, “affordability remains one of our market’s strongest attributes, with 83 per cent of all residential-detached homes sold in October selling for less than $300,000. In comparison, Calgary only had 14 per cent of its residential-detached houses sell for less than $300,000.

“And in Winnipeg, nearly one in every five MLS® residential-detached sales were under $200,000, whereas it was less than one per cent in Calgary,” Goodfellow  added.

For residential-detached home sales, the most active price ranges were between $150,000 and $199,999 and $200,000 and $249,999 in October, representing 25 per cent and 23 per cent of all MLS® sales, respectively.