Real Estate Market Update-March 2023Along with the number of active listings on the market, MLS® sales in March continued to grow from last month marking a sustained transition back to the type of market seen before the pandemic began. The number of active listings is up over last year but still has room for growth before meeting the levels seen before the pandemic began. Meanwhile, MLS® sales for March 2023 were below the record March sales totals in 2021 and 2022 and slightly above the levels seen before the pandemic.
Of the 3,368 MLS® active listings across our market region in March, 1,565 were in Winnipeg while 1,803 were in the rural areas outside Winnipeg and of the 1,014 MLS® sales across our market region, 664 were in Winnipeg with 350 in the rural areas outside Winnipeg.
“It's good to see an increase from last month in MLS® sales along with continued growth in active listings to close out the first quarter of 2023," said Akash Bedi, outgoing 2022-2023 president of the Winnipeg Regional Real Estate Board. “March was the first time since the market shifted midway through 2022 that MLS® sales totals have been higher than the same month in pre-pandemic 2019."
Of the 1,612 residential detached MLS® active listings across our market region, 773 were in Winnipeg while 839 were in the rural areas outside Winnipeg. Of the 698 residential detached MLS® sales, 471 were in Winnipeg while the remaining 227 occurred in the rural areas outside Winnipeg.
Of the 443 active listings for condominiums across our market region, 315 were in Winnipeg and 128 were in the rural area outside Winnipeg. Of the 149 total MLS® condominium sales in March, 122 were in Winnipeg and the remaining 27 occurred in the rural area outside Winnipeg.
Source: Winnipeg Regional Real Estate Board.
Real Estate Market Update-September 2022
Slower September MLS® sales move market towards balance
WINNIPEG, October 6, 2022 - September 2022 sales are no match for the last two exceptionally active Septembers as sales decreased 20% and 32% from 2021 and 2020 respectively. The 1,205 MLS® sales transacted this September are much more aligned with the most immediate prepandemic year of 2019 which had 1,211 sales.
While sales decreased 11% over the 5-year average, new listings coming onto the market in September are up 12% from last year and only down 1% over the 5-year average, so the combination of fewer sales and more listings is helping restore balance to a local market that had been well entrenched in sellers' market territory earlier in the year. As a result, active listings — or current inventory of 3,897 at month-end — is up 37%.
“September is a continuation of the progression in the third quarter of our market region, transitioning out of a sellers' market to one far more balanced and buyer friendly," said Akash Bedi, 2022 President of the Winnipeg Regional Real Estate Board. “As we saw in August, above-list price sales are far fewer now than earlier in the year, with the majority of listings selling for less than list price."
Source: Winnipeg Regional Real Estate Board.
Real Estate in Winnipeg-March 2022
In examining March conversion of MLS® listings to sales at 78%, it aligns very well with the high percentage achieved in March 2021, with only one percentage point lower in 2022. Single-family active listing conversions are identical for both years at just under 82% while condominiums are almost the same at 73% in conversions. Prior to 2021, conversions were significantly lower for this time of year.
This pattern is replicated for the first quarter of market activity with respect to MLS® listing conversions to sales. In both 2022 and 2021, approximately 72% of listings entered on the MLS® for the first three months sold. In prior years, fewer than 50% were converted.
“Demand in 2022 remains very brisk, as we experienced in 2021" said Bedi. “The difference in 2022 is that we are seeing fewer sellers engaged in our market despite the opportunity they have to take advantage of strong seller's market conditions."
March is the first month this year when condominium sales were not able to match or exceed 2021 sales. They were down 21% but up 71% and 64% over the same month in 2020 and 2019 respectively.
The pronounced seller's market conditions for single-family detached homes have led to a rapid rise in house prices in 2022 compared to 2021. While southwest Winnipeg was highlighted last year as the MLS® zone with the highest sale prices in the entire market region — and remains so — other zones need to be watched given their quick ascendancy in prices in the first quarter of 2022.
Another indicator of rising prices in 2022 is the number of single-family homes and condominium listings that resulted in higher than list price sales. For the first quarter of this year, single-family was at 61% while condominiums had one in four sell for more than list price. In comparison to 2021, it was 47% for single-family and 13% for condominiums.
An indicator of higher single-family priced sales in March 2022 compared to the same month last year, despite 309 more sales in 2021, was that there were 17 million-dollar-plus sales compared to 7 last year, and 98 sales from $600,000 to $699,999 versus 66 in this price range last year.
Real Estate in Winnipeg
February sales were held back from a lack of listing supply. This resulted in a decrease of 22% from February 2021, however, sales of 963 are up 8% over the 5-year average. February 2022 is the second-best February on record as February 2021 was the only February to go beyond the 1,000 sales thresholds for this month.
This year’s market has yet to thaw out when it comes to listings. New Winnipeg real estate listings entered in February were down 19% and were further exacerbated at the beginning of February when there were 31% fewer active listings available from the year prior.
Demand is bumping up against supply and resulting in high conversions of Winnipeg real estate listings to sales. Over half of the entire MLS® inventory turned over in February, with single-family listings being that much higher at 84%. Price increases resulted in 57% of all single-family home sales in February selling for above list price. The average sale price is the highest it has ever been at $429,000 and has risen rapidly, nearly $50,000 from the 2021 year-end average sales price of $380,000 and almost $70,000 from the February 2021 average sales price of $360,000.
One exception to the sales decline experienced so far in 2022 is condominiums. Despite having much fewer listings than previous years, sales are still managing to keep up with the brisk pace set in early 2021. Sales in February are up 4% over February 2021 and year-to-date they are ahead by 2% at 300.
“Condos continue to be a real strength in our current market as was the case in 2021 when sales were up 39% over the previous year,”. “Given the steep rise in single-family house prices, it should not come as a surprise that more buyers are looking for more affordable real estate options to commence their ownership journey.”
Sales for condominiums were almost evenly split within the three $50,000 price-range increments between $150,000 to $299,999 and made up 60% of the 176 sales. Another 14% of sales were from $300,000 to $349,999. The average condominium sales price was $265,681 — up 8% from the 2021 year-end average sales price of $245,000 and 10% from the February 2021 average sales price.
*Statistics are generated from Winnipeg Regional Real Estate Boards MLS® system.