Winnipeg real estate sales continue to break records

Manitoba saw a record month for real estate in July 2020. (Source: Scott Andersson/CTV News)

Winnipeg real estate sales continue to break records with May sales topping $692 million, an all-time high, which is up 70 per cent compared to May last year.

The biggest increase in sales from last year can be attributed to the purchase of vacant land, with 601 sales so far, compared to 229 a year ago. Sales of condos, duplexes and townhouses also more than doubled.

“Buyers continue to show unwavering enthusiasm for all property types in May and as a result it is putting a price premium on many listings that come onto the market for sale,” said Kourosh Doustshenas, president of the Winnipeg Regional Real Estate Board in a news release.

When it comes to prices, the average condo went for $254,928, up 11 per cent over May 2020. About one-in-five of those listings sold for above the list price.

“Condominiums have become an alternative affordable option for first-time buyers keen to get a foothold in the ownership market,” said Doustshenas. “Winnipeg Regional Real Estate Board’s Home Price Index benchmark price for a typical apartment condo in May is $202,700, whereas the benchmark price for a single-family home is $335,700.”

The 2,006 properties sold in May are second only to the record-breaking 2,055 properties sold in April on Winnipeg’s Regional Real Estate Board’s Multiple Listing Service (MLS).

Listings were up by four per cent in May, but with the increased sales supply, were down by 40 per cent year- over-year headed into June.

“Sales-to-active listings for all single-family homes in our entire market region was 111% which means listings are turning over quicker than can be replaced to meet current demand,” said Doustshenas.

So far, this year’s 8,197 sales are up 68 per cent, with MLS listings also ahead of 2020 by nearly nine per cent with 10,594 listings.

“May sales show how diverse our regional market is in the mix and scale of property types that were sold,” said Marina R. James, CEO of the Winnipeg Regional Real Estate Board. “REALTORS® are professional and informed and make it their business to become experts in all facets of real estate.”

A new mortgage stress test with an interest rate of 5.25 per cent has come into effect, which will reduce a person’s buying power by four per cent.

For people who already own property, a financial windfall is on the horizon as the province is set to mail out education property tax rebates of 25 per cent for residential and farm property owners.