May is one of those transition months that Winnipeg real estate market watchers pay careful attention to. Seeing how the inevitable winter slump transitions into summer is useful information when predicting the market trends for the month ahead. This May, Winnipeg showed signs of heading towards a very active market.
Old sales records fell for the month of May with 1,696 homes being sold in the month. This was up 4% compared to last year’s figures. This helped improve the performance in the Winnipeg market on a year-to-date basis. Sales had been lagging behind the performance of 2016 until the strong May, which brought total sales up to 5,434 over the first five months of the year. This was only 12 sales fewer than the year-to-date sales over the same period last year.
Listings Extremely Tight, Especially in In-Demand Neighborhoods
At the end of May, there were only 2,406 single family homes left for sale in Winnipeg, along with 883 condos. This is an extremely low overall level of inventory, with single family homes offering only 2 months of available inventory, but in some neighborhoods of the city this pinch is being felt to an even greater degree. Essentially, all neighborhoods in the southwest portion of the city, including Riverview, Charleswood, Whyte Ridge etc., are becoming quite difficult for buyers to find a new home in.
Average Priced Homes in High Demand
The changing landscape of mortgage approval has shifted the types of homes that are selling in the current high-demand Winnipeg market. The average price of a detached home sold in the city in May was $322,616, while the price of condos averaged $258,122. Previously, sales of homes under $300,000 were relatively robust in Winnipeg, but this year they have dropped off due to the difficulties being faced by people shopping in that price range when applying for mortgages. On the other hand, there has been a surge of sales in the $300,000 to $400,000 price bracket. 21% more homes sold within that range this May compared to last.
Winnipeg is clearly looking at a promising summer in the real estate market. However, unless more homes start to come on the market, it would not be unexpected to see prices climbing, especially in the high-demand single-family detached segment. People looking for homes in the in-demand neighborhoods can also expect that they may need to be patient, as supply levels are very tight currently in some portions of the city.
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