WinnipegREALTORS® Press Release; February 10, 2012

WINNIPEG – With the exception of 1997 when January sales were at 660, January 2012 sales activity ranks among the best results for all other Januarys as none have even threatened the 600 sales level. Dollar volume is another story altogether as despite sales being in a virtual deadlock with last January, there was still nearly an additional $8 million worth of sales activity. As a result, we see a replay of previous years where even if sales are not up to the previous year level, the dollar volume sets a new monthly record.

Interestingly enough, some of the real star performers of last year relate to property type, dropped off in the first month this year in comparison to activity the same month a year ago. Sales of single-attached were off 25% while condominiums dropped 16%. And vacant lots and mobile homes both decreased 8%. The saving grace was the 4% increase in single family homes which accounts for the lion’s share of allMLS® sales. For example in 2011 this dominant property type comprised 74% of allMLS® sales.

Rural sales in particular stood out in January as represented 29% of all single family home sales.

JanuaryMLS® sales were down just 2 properties (564/566) while dollar volume was up 7% ($133.3 million/$124.5 million) in comparison to the same month last year. New listings entered on theMLS® in January of 1,045 were off 8% from January 2011.

“We do not read a lot into one of our slowest months of the year,” said Shirley Przybyl, president of WinnipegREALTORS®. “It is fair to say however that is does track well in line with our 2012MLS® forecast where we predictMLS® sales holding the line with last year’s 13,000 plus  performance and that dollar volume will still move up higher due to tight market conditions remaining firmly entrenched in 2012.” She added, “The extremely low interest rate environment will continue to be a real incentive for first–time buyers to get into the housing market.”

The most active residential-detached price ranges were almost evenly divided amongst three between $150,000 to $299,999. Together these sales represented 51% of total sales. Close behind the three price ranges was $100,000 to $149,999 with 15% of total sales. Condominium sales were a different story with only one price range from $150,000 to $199,999 making up 43% of all sales.

The average days on market to sell a home in January was 42 days, 2 weeks slower than last month and the same pace as January 2011. The average days on market for condominium sales was 35 days, 2  weeks slower than last month and 3 days quicker than January 2011.

From Winnipeg Free Press Publication, January 28, 2012

OTTAWA — Canada will likely avoid a crash or serious correction in its “somewhat pricey” housing market, with the possible exception of Vancouver, says a new paper from the Bank of Montreal.

The analysis by BMO economists suggests alarms about Canada’s housing market by international observers, from the International Monetary Fund to The Economist magazine, are exaggerated or simplistic.

“The main takeaway is that the national housing market appears somewhat pricey but is far removed from a bubble,” said economists Sherry Cooper and Sal Guatieri in the report released Monday.

“In our view, the (market) is more like a balloon than a bubble. While bubbles always burst, a balloon often deflates slowly in the absence of a ‘pin.’ ” The report said house sales remain strong in Alberta and Saskatchewan and in major urban centres such as Toronto, Montreal, Winnipeg, Halifax and Ottawa.

The report says Winnipeg has seen the greatest price appreciation of 11 major cities during the past decade, at 171 per cent. But it notes Winnipeg housing is still among the most affordable because the average-price-to-family-income ratio remains one of the lowest at 3.2 per cent. Vancouver’s ratio is 10 per cent, followed by Toronto at 6.7 per cent. The report estimates half the new condos in the Toronto area are purchased by investors and about 22 per cent are rented.

The one exception to the sanguine view appears to be Vancouver and parts of British Columbia, where home prices and demand from an influx of non-resident Chinese investment is elevating prices and construction. 

— The Canadian Press / staff 

From Winnipeg Free Press Publication, January 28, 2012

By Todd Lewys

By now, pretty much everyone who calls Winnipeg home knows it’s one of the hottest real estate markets in the country.

Here’s a statistic — courtesy of WinnipegRealtors’ market analyst and director of public affairs, Peter Squire — that puts just how hot the market is into perspective.

“It took us 99 years to reach onebillion dollars in sales in 2002,” he said at WinnipegREALTORS’ sixth annual forecast breakfast Jan. 25. “Nine years later, this milestone has tripled. Winnipeg, thanks to an increasingly hot real estate market over the past nine years, is now a three-billion-dollar MLS market.”

A banner 2011 — marred only by slow sales in April, the result of flooding — reinforced the fact the Winnipeg market isn’t about to slow down any time soon.

“Overall, we were just 14 sales shy of topping our best year, 2007. Sales volume was highest in June at $368 million, while the only month down in volume was April,” reported Squire. “And our summers are no longer sleepy, as sales volume was strong through the entire summer, right into September.”

As for sales hot spots, the most active areas included St. Vital, Fort Rouge and Transcona, where sale prices routinely went above the average list price. One area that rated as a very pleasant surprise was Steinbach, where sales volume increased dramatically.

“Rural areas have really come on in the last few years, none moreso than Steinbach. Last year, there were over 500 home sales there,” he said. “The area there is booming, so we expect sales volume to be strong in 2012, too.”

With it still being a sellers’ market due to high demand and a relatively low inventory level, it’s not surprising home prices increased in 2011. Whereas the average price in 2010 was $241,743, that figure shot up just over $15,000 in 2011 to $256,748.

That increase can be attributed to several factors that have put resale homes in high demand, added Squire.

“International migration has been a huge driver. With our low apartment vacancy rate, people who couldn’t find an apartment then looked to buying a home, whether it be a single-family detached home or a condominium,” he said. “About 76 per cent of sales were residential detached homes, while more than 1,600 condominiums were sold in 2011. It’s a trend I see continuing, it’s just a matter of supply.”

Several other factors will also contribute to what figures to be an active 2012, as sales figures in January have been strong.

“More people are coming to the province, while interest rates are expected to remain low through 2012,” said Squire. “Manitoba’s economy is solid and the jobless rate is low, which should also keep sales strong. Other things like new construction and the Winnipeg plan, which will encourage and facilitate more development, should also help.”

However, 2012 figures may not be quite as robust as 2011, a near record year.

“It’s going to be difficult to top such a strong year. Still, our forecast is for home sales to go up zero to two per cent, with home prices increasing by three to five per cent and condominium prices going up by two to four per cent,” he said. “We’re also predicting that total volume will be up four to six per cent. The only cautionary note is that debt and deficit issues by all levels of government, as well as global (economic) uncertainty could influence those numbers downward.”

With the Winnipeg Jets back in the fold, and a new stadium for the Blue Bombers and IKEA coming in the near future, Winnipeg now finds itself in an exciting new category, said Squire.

“We’re a major league city with affordable housing. As a city, we’re ready for takeoff,” he concluded.

WinnipegREALTORS® Press Release; January 10, 2012

WINNIPEG - Based on the busiest December on record in WinnipegREALTORS® 108-year history, you have to surmise that some of all those gift cards being purchased in December had to be house-warming gifts. December sales have never been at the 700 level mark before nor has dollar volume climbed so high to $182 million – a total that is leaps and bounds over any previous December. Prior to 2009, no December dollar volume ever eclipsed $100 million.

The strong finish to 2011 encompassed the entire second half with new monthly sales records or near best results. It led to WinnipegREALTORS® having its first $3 billion year worth ofMLS® sales and the second bestMLS® sales year – only nudged out by 13 sales in 2007.  There is no question something special and significant happened to this city when the announcement was made of the return ofWinnipegto theNHL. Buyers gained confidence and were clearly motivated by the low borrowing costs that persisted throughout 2011 given the uncertain global outlook.

A real encouraging sign in December, as well as the year as a whole, was the improvement inMLS® inventory. New listings in the last month of the year were over 600 for the second year in a row. Total listings entered onMLS® in 2011 went over 18,000 for the first time in many years. The distinct advantage of more choice of newMLS® listings this December was a factor in almost catching the best annual sales on record in 2007. It is worth noting 2011 is only the second time WinnipegREALTORS® has hadMLS® sales go over 13,000.

DecemberMLS® unit sales increased 7% (698/653) while dollar volume shot up 19% ($182.0 million/$153.0 million) in comparison to the same month last year. 2011MLS® unit sales ended up 7% (13,065/12,236) while dollar volume rose 12% ($3.06 billion/$2.73 billion) in comparison to the 2010. The 18,381 listings entered onMLS® in 2011 were up 3% from 2010 and conversion of these listings to sales finished at 71%, an improvement too over the previous year where it had fallen under 70 %.

“Pleasantly surprised and pleased at how we finished 2011 would be an accurate reflection of how we feel given our expectations were more muted at the beginning of the year,” said Ralph Fyfe, outgoing 2011 president of WinnipegREALTORS®. “As the year progressed it became evident momentum was on our side and it carried us all the way through to a record dollar volume year and a near miss on achieving a new benchmark for sales.”

Here is how things shook out in terms of the differentMLS® property types. Residential-detached closed the year out with a 6% increase in sales over 2010. The over 9600 sales transacted represented 74% of totalMLS® market share. Condominiums reached their highest level ever at close to 1,600 sales and were up 10% over 2010. These sales account for another 12% ofMLS® activity in 2011. The biggest improvement however in sales as far as property types goes is the 27% increase in vacant lots from 414 in 2010 to 525 in 2011.

Owing to the outstandingMLS® residential-detached sales activity in the SteinbachMLS® area where sales alone exceeded 500, the ruralMLS® areas grabbed 24% of allMLS® residential-detached sales. The southwest quadrant ofWinnipegwas second at 19%.

As for average residential-detached sales prices for the different quadrants of the city and for rural municipalities, there is a significant spread between the highest and lowest prices. The southwest quadrant ofWinnipegis $341,461 whileWest Winnipeg, neighbourhoods north of theAssiniboineRiverand west of the downtown finished at $202,152.Winnipeg’s southeast quadrant for the first time reached $300,000 and rural municipalities ended up third highest at $250,000. The overall average residential-detached price reached its highest level on record at $256,748. It is up 6% from 2010.

“When we say all real estate markets are local it certainly applies toWinnipegand is readily apparent when you see how divergent some of the prices are within the overall market region,” said Fyfe. “The most important statistic to you is the home you are selling or buying so you really do need to enlist a REALTOR® - a local expert – to interpret and assess your particular situation and advise you accordingly.”

The most active residential-detached price range in December was from $200,000 to $249,999 at 19% of total residential-detached sales activity. In sharp contrast, the most active condominium price range was from $150,000 to $199,999 at 53% of total condominium sales activity. For the year, the same price ranges were dominant for the aforementioned property types with percentages of 23% and 42% respectively.

The average days on market for residential-detached sales in December was 28 days, 1 day slower than last month but 5 days quicker than December 2010. As for the year, the average days on market was 26 days, just a day faster than 2010. For condominiums, the average days on market to sell in December was only 21 days, 11 days quicker than last month and 9 days faster than December 2010. For the entire year, the average days on market for condominiums was 29 days, one day faster than 2010.

The highest residential-detached sale price in 2011 was $1,750,000 while the lowest was just $14,000. The highest condominium sale price was $649,900 and the lowest was $35,000.

More detail on the year that was in 2011 will be reviewed at WinnipegREALTORS® annual forecast event to be held on Wednesday, January 25^th. Predictions will also be made forMLS® sales activity in 2012.

From Winnipeg Free Press, by Murray McNeil, January 11, 2012.

WINNIPEG’S Goldilocks housing market is showing no signs of being gobbled up by the big, bad wolf.

Although a growing chorus of experts predicts overheated housing markets like those in Vancouver and Toronto could be in for a fall in 2012, year-end housing reports issued Tuesday show Winnipeg’s robust market is showing no signs of slowing.

Not only was 2011 the second-best year on record for MLS (Multiple Listing Service) sales (13,065), it was the best year since 1989 for singlefamily housing starts (2,002) and the second best since 1988 for multiplefamily starts (1,329).

And last month was the best December ever for both MLS unit sales — up seven per cent to 698 — and dollar volume of sales — up 19 per cent to $182 million.

“As the year progressed, it became evident momentum was on our side and it carried us all the way through to a record dollar-volume year and a near miss on achieving a new benchmark for sales,” said Ralph Fyfe, Winnipeg Realtors’ outgoing president.

Even house prices continued to rise at a higher-than-expected clip, with the average MLS selling price for a detached home climbing by six per cent to $256,748. That’s triple what the WR’s residential market analyst, Peter Squire, was forecasting at the start of 2011.

The only ones who didn’t find anything to cheer about were the city’s beleaguered renters, who are grappling with historically low vacancy rates — 1.1 per cent in Winnipeg as of last October — and average rent increases of 4.6 per cent in the past year.

Canada Mortgage and Housing Corp. said there were five more rental units started last year than in 2010 — 812 versus 807. That won’t do anything to ease chronically low vacancy rates.

While Squire and CMHC are anticipating another strong year for Winnipeg’s housing market in 2012, others see tougher times ahead for Canada’s market. Some analysts have noted Canadian households are already at record high debt levels, and the growth of both jobs and income has stalled. And that could dampen the demand for houses in 2012. The heads of some of Canada’s biggest banks told a banking conference on Tuesday Canada’s robust housing sector could be at risk in 2012.

Gordon Nixon, president and CEO of Royal Bank, said the Canadian market could be headed for a slowdown, led by Vancouver and Toronto.

“When you look at the condo side there is probably vulnerability... it is the area which is most vulnerable with respect to Canadian housing,” Nixon said.

His remarks came as CMHC data showed Canadian housing starts rose more than expected in December to 200,200 units, with condos in Toronto and Atlantic Canada leading the charge.

Squire and CMHC senior market analyst Dianne Himbeault said a correction isn’t in the cards for Winnipeg in 2012.

Rather, they’re predicting performance similar to 2011.

TD Economics’ most recent forecast said Winnipeg house prices are overvalued by nearly 10 per cent and are in line for a modest correction — 0.8 per cent this year and 1.4 per cent in 2013. But Squire said that’s crying wolf.

“We still think we have some good indicators and strength in our market that will carry over into 2012,” he said.

— with files from The Canadian Press 

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For ther Information, please also see:

An Impressive Finish to 2011; Best December Ever At Just Under 700 MLS® Sales

My House is Not Your House: Reports on Average Home Prices Are of Dubious Value

WinnipegREALTORS® Press Release; December 8, 2011

WINNIPEG - Mustache or not, WinnipegREALTORS®’ Movember stands for MLS® momentum. In the last few months, 2011 has been exceptional and now the year-to-date is challenging the best year ever… 2007. November set a new sales record for the month, edging out November 2007 by one sale. The dollar volume vaulted 30% higher than 2007 and is 11% better than 2010, which was the highest November on record until this year.

While it appears 2007, with a 200 sale lead over 2011, is a sure bet to hold its title as the all-time best year with over 13,000 MLS® sales, it will easily be supplanted by 2011 for dollar volume. It is still possible, if momentum carries the day again in December, that 2011 could be only the second year in WinnipegREALTORS® illustrious 108-year history to crack the 13,000 sales level.

November MLS® unit sales increased 6% (881/829) while dollar volume rose 11% ($202.1 million/$182.2 million) in comparison to the same month last year. Year-to-date MLS® sales are up 7% (12,367/11,583) while dollar volume is ahead by 12% ($2.88 billion/$2.58 billion) in comparison to the same period last year. Just under 70% of all listings entered on the MLS® have sold this year.

The residential-detached property type led the way this month with an 8% increase in sales and 14% rise in dollar volume in relation to what happened last November. It also made up 74% of all MLS® sales activity this month. Condos grabbed the second highest market share at 12% of total MLS® sales.

Speaking of condominiums, with a month to go, sales for the first time have gone over 1,500 and that represents a 12% increase over the same period last year. However, the most notable and marked positive change in sales from last year is vacant lots with 500 sales so far and a 25% increase over 2010.

“Contrary to what some people and prognosticators think given global economic uncertainty and warning signs for Canada’s economic outlook, our local MLS® market is firing on all cylinders as consumers are seeing housing as a haven of stability in contrast to other investments,” said Ralph Fyfe, president of WinnipegREALTORS®. “Of course helping them make their decision easier is the continuation of very low and favourable mortgage rates. As a result, Winnipeg still has some of the most affordable house prices for any major city in Canada and certainly is by far the lowest among Canadian cities with an NHL team.”

“One reason condominiums have been so popular this year is not only for the alternative lifestyle they offer a buyer but also the attractive pricing compared to detached single family homes,” said Fyfe. “Over 50% of condominium sales in November sold in the $150,000 to $199,999 price range whereas with residential-detached homes, only 18% sold in this price range.

For residential-detached sales in November, the most active price range was from $200,000 to $249,999 with 24% of total sales. The ranges immediately above and below this range were evenly split and together, represented another 35% of total sales. As for condominiums, $150,000 to $199,999 with 53% of total sales was the most active range. A distant second range was from $100,000 to $149,999 at 18%.

The average days on market to sell a residential-detached home was 27 days, 2 days quicker than last month and 5 days faster than November 2010. The average days on market to sell a condominium was 32 days, 3 days slower than last month and 2 days faster than November 2010.

WinnipegREALTORS® Press Release; November 8, 2011

WINNIPEG – In what has clearly become a surprisingly consistent and impressive string of solid month sales, and October is no exception with the second best sales on record for this month, 2011 has now supplanted 2008 for second place and with two months to go, is less than 2% off the strongest sales performance ever in 2007. Year-to date dollar volume is already the highest achieved in WinnipegREALTORS® 108-year history with $2.67 billion dollars worth of MLS® sales.

October 2011 helped get the fourth quarter off to a great start with everything up in double-digit percentages. New listings rose 11%, sales were ahead by 13% and dollar volume reached 20%. Only 2007, the year that 2011 is nipping at its heels, had better sales in October.

October MLS® unit sales increased 13% (1,076/949) while dollar volume was up 20% ($256.9 million/ $214.2 million) in comparison to the same month last year. Year-to-date MLS® sales are up 7% (11,486/10,754) while dollar volume has increased 12% ($2.67 billion/$2.39 billion in comparison to the same period last year. Nearly 70 % of all MLS® listings entered on the market this year have sold thus far.

“This year has been all about exceeding expectations,” said Ralph Fyfe, president of WinnipegREALTORS®. “One good example is how we were too conservative on projecting our home sales. We underestimated the emergence of heightened listings and sales activity in new developments such as Waverley West, east Transcona, and even in rural hot spots such as Steinbach.”

Another factor is the continuation of very attractive mortgage rates in combination with uncertainty around alternative investments such as the stock market. The last months in particular have been performing exceptionally well. October 2011outperformed the previous 10-year sales average by 10%.

Owing to improvement in the overall number of listings coming on the market in the last few months, inventory has improved and created a more balanced market. One indicator of this development in October is the total sales price to total listing price ratio falling under 100%. This means there is less price pressure on listings and in fact 56% of homes sold in October went for less than list price.

For residential-detached sales in October, the most active price range was from $200,000 to $249,999 with 23% of total sales. The immediate price ranges below and above this one were in a virtual deadlock with 17 and 18% respectively of total sales. October 2011 had one house sale for $1,750,000 in St. Germaine and another million dollar home sell in Fort Garry.

Condominium sales activity was dominant in the $150,000 to $199,999 price range with 44% of total sales.

The average days on market to sell a residential-detached home was 29 days, 3 days slower than last month and only one day off the pace set in October 2010. The average days to sell a condominium in October was 26 days, 9 days quicker than last month and 5 days faster than October 2010.

As in any local market with the mix and diversity Winnipeg has within the entire capital region, whether you are buying or selling, you need to be talking to a REALTOR®. They are market experts able to provide a very accurate reflection of the current market based on the unique features and attributes of a particular property. 

WinnipegREALTORS® Press Release; October 6, 2011

WINNIPEG– Balmy summer weather in September created summer-like market activity which led to a third consecutive month of over 1200MLS® sales. As a result, it makes September 2011 WinnipegREALTORS® best September in 108 years. September 2010 was the previous best September on record. The dollar volume was impressive too as it easily eclipsed last year’s record by $30 million. With three months to go, year-to-dateMLS® dollar volume stands at over $2.4 billion andMLS® sales of 10,400 are flirting with the best year ever in 2007 when there were over 13,000MLS® sales by year end.

Call it what you will, a jet -fueled market with our newNHLteam ready to take-off this weekend, and exciting new developments including an IKEA, a Canadian Museum for Human Rights, a new football stadium, an expanded Winnipeg Convention Centre and a new airport opening at the end of the month, Winnipeggers are optimistic about what is happening in our city.

Another undeniable factor pointed out by the Canadian Real Estate Association’s chief economist Gregory Klump is due to global economic instability and uncertainty and the increasing volatility in the stock market, interest rates are being kept lower for longer so real estate becomes an attractive alternative investment. Moreover, as CREA president Gary Morse stated in commenting on the AugustMLS® market results where Winnipeg clearly was one of the best performing markets bar none in the country, … “homebuyers are showing that they remain confident about the stability of the Canadian housing market, and recognize that the continuation of low interest rates represents an excellent opportunity to buy their first home or trade up.”

SeptemberMLS® unit sales increased 6% (1,214/1,142) while dollar volume rose 12% ($278.4 million/$248.0 million) in comparison to the same month a year ago. Year-to-dateMLS® sales are up 6% (10,410/ 9,805) while dollar volume has increased 11% ($2.42 billion/$2.18 billion) in comparison to the same period last year. Two out of every three of the 15,300 listings entered on theMLS® market this year have sold.

“We did not miss a beat in September as the market continued to pick up right where it left off in August,” said Ralph Fyfe, president of WinnipegREALTORS®. “New listings increased over last September and buyers responded given there were more to choose from.”

Fyfe added, “While some of the provincial election signage may have overshadowed our REALTOR® signs this past month, you can expect to see lots of our member signs out and about in October given the continuing strength of our local real estate market.”

Vacant lots and condominiums continue to be the best performingMLS® property types this year with year-to-date increases of 26 and 14% respectively. Residential-detached sales are up almost 5%.

For residential-detached sales in September, the most active price range by far was the $200,000 to $249,999 with 26% of total sales. The under $100,000 market continues to erode with only 4% of the market and the longest days to sell of 41 days. The average days on market to sell a residential-detached property was 26 days,  2 days quicker than last month and 3 days faster than September 2010.

Condominium sales were dominant in the $150,000 to $199,999 price range with 39% of total sales. Only 2% of sales were under $100,000. Average days on market in September was 35 days, 5 days slower than last month and 2 days off the pace set in September 2010.

WinnipegREALTORS® Press Release; September 7, 2011

Mosquitoes have become an endangered species inWinnipegthis year … but a new bug has appeared – theWinnipegreal estate sales bug! Sales in August are on par with the best August ever in the real estate Association’s 108 year history.

In August of 2005 there were 1293 sales – and this August we registered 1290MLS® sales.

But the dollar volume isn’t even close – in 2005 the 1293 sales amounted to $169 million in dollar volume – this year’s 1290 sales registered $297 million – so virtually the same number of sales - but a staggering 76% increase in dollar volume in 6 years.

With concern about the world economy; a potential 3^rd stimulus package south of the border and rampant fluctuations in the stock market and personal retirement investments, theWinnipeg real estate market continues to be the steadiest economic engine on the tracks.

“At the start of the year we looked at all the economic indicators – many of which were pretty negative, or at least tough to interpret because of all the government participation in the economy. But we still couldn’t see any reason for our local real estate market to suffer any correction.” said Ralph Fyfe, President of the WinnipegREALTORS® Association.

“We predicted at our January forecast breakfast that Multiple Listing Service® (MLS®) home sales would rise by up to 2%, home prices would go up 7-9% and dollar volume through theMLS® would increase 9-11%.

“But looking at the numbers to the end of August … we may have been too conservative in our estimates. Maybe the negativity around us at the time made us too cautious. Both our August numbers and year-to-date numbers have exceeded our predictions.” he went on to say.

In August, sales were up 27% from August of 2010 (1290 vs. 1016); dollar volume was up 35% ($296 million vs. $220 million); and the 1784 listings added to theMLS® in the month surpassed last August’s listings by 13% (1578 in 2010).

And the record August numbers only added to the year-to-date positive statistics. From January to the end of August, listings through theMLS® are up almost 3% (13,551 vs. 13,203); sales are up 6% (9196 vs. 8663) and dollar volume is up 11% at $2.14 billion ($1.9 billion in 2010 year-to-date).

“So with sales up 6%, home prices up 8% and dollar volume up 11% - our projections are definitely on track. I can’t help but believe that all the optimism evident in major projects like the new airport; CentrePort; the museum; the new football stadium; the return of the Jets … and all the other exciting developments in our City and Province have provided consumers with a confidence that is playing out in the real estate market.” Fyfe concluded.

The most active price ranges for residential detached sales continue to be 200,000 – 250,000 (20% of August sales) and $150,000-$200,000 (19%) respectively. Average days-on-market for single-detached homes was 28 days – down from 30 days in August of 2010. 10% of August sales were over $500,000 while 7% were under $100,000.

The most active price ranges for condominiums were $150,000 - $200,000 (35% of sales) followed by $100,000 - $150,000 (26%). Condos averaged 30 days on the market – down from 34 days last August.

From the national perspective, Gregory Klump, economist with The Canadian Real Estate Association reports that, “Interest rates will remain lower for longer, and the prevailing economic forecast calls for further modest growth, so the housing market will remain an oasis of stability compared to further financial market volatility.”

WinnipegREALTORS® Press Release; August 8, 2011

WINNIPEG - Spectacular weather in July which kept ice cream and beer vendors busy did not deter sellers and buyers from remaining engaged in the market after an exceptional June of over 1,500MLS® sales. While not as active given Winnipeggers’ penchant for taking advantage of a plethora of summer festivals and frequent trips to Manitoba’s diverse cottage country, sales of close to 1,250 were on par with the third best July on record in 2007.  July 2008 is by far the best July ever at over 1,400 sales with the 10-year average for July sitting at 1,200 sales. New listings were ahead of last July too with over 1,700 added in July 2011.

To no one’s surprise, given a strong sales performance for this month and higher average sale prices in each successive year, dollar volume once again set a new record for month of July. It still however fell short of the $300 million monthly mark that was substantially eclipsed each of the two previous months. The average selling price in July for a residential-detached home was $254,486 – up nearly 7% compared to the July 2010 average of $238,441.

July MLS® unit sales increased 4% (1,246/1,195) while dollar volume went up 10% ($288.1 million/$261.3 million) in comparison to the same month last year. Year-to-date MLS® sales are up 3% (7,906/7,647) while dollar volume is ahead by just under 8% ($1.84 billion/$1.71 billion) in comparison to the same period last year. The 7% increase in new listings this month over the same month last year translated into an overall 1% increase in year-to-date listings from 2010. As of the end of July, 11,767 listings have been entered on the MLS® system this year.

“An improvement in new listings in July helped keep prices in check as the monthly average home price of over $254,000 is still under the year-to-date average of $256,000 and there were less above list priced sales too so buyers had a little more breathing room,” said Ralph Fyfe, president of Winnipeg REALTORS®. “However, inventory still remains tight overall, especially in a number of Winnipeg neighbourhoods. So depending on the price range and neighbourhood you are interested in, multiple offers may well be in play. As a result, your best recourse regardless of potential competition for a home you want to buy is to call a REALTOR® to advise you accordingly on your own situation.”

What is really starting to emerge this year and was no more apparent than in July is what was referred in WinnipegREALTORS® 2011 January forecast speech as a ‘flight to affordability’.

“The Winnipeg Jets may be taking off too but in the real estate market the alternative flight path and clearly more affordable offerings of condominiums and single-attached homes in contrast to residential or single-family-detached is as real as a Goog at the BDI,” said Fyfe.

In July, condominium sales were up 23% while single-attached residential properties rose an astounding 76%. Year-to-date numbers are impressive as well. The former are outpacing last year’s sales at this time by 10% while the latter or single-attached are up 16%. Residential-detached property sales have increased less than 3% for the year and just over 1% for July.

The spread between the year-to-date residential-detached average sale price of $256,000 and the average sale price of condominiums and single-attached is $54,000 and $63,000 respectively. Not only are these two alternative property types more affordable, the highest land transfer tax in the country at 2% over $200,000 does not apply at all or very minimally if you were to pay the average price. For every $50,000 in value above $200,000, the provincial government collects $1,000 from the home buyer before they can take title to their new property.

For buyers of residential-detached homes in the southwest and southeast quadrants of Winnipeg where the average sale price this year is above $300,000, this means they are paying at least $2,000 more in land transfer taxes as a result of the 2% land transfer tax rate.

WinnipegREALTORS® is calling on Manitobans at 2muchltt.com to tell the provincial government they need to reduce the unfair burden of the Manitoba land transfer tax on property buyers. Based on what you would have paid for an average priced home in 1987 when this tax was introduced and what you would pay now if you buy an average priced home, land transfer taxes have gone up tenfold.

As has been stated before, the impact of the land transfer tax is more acute with first-time buyers where every after tax dollar they save is critical to going towards the required down payment and closing costs (includes the Manitoba land transfer tax).

For residential-detached sales in July, the most active price range was from $200,000 to $249,999 at 24% of total sales. Second busiest was from $250,000 to $299,999 at 19%. For condominium sales, the most active price range was from $150,000 to $199,999 at 42% with the $100,000 to $149,999 range well back at 22%.

Average days-on-market for residential-detached sales in July was 26 days, 3 days slower than June and 2 days faster than July 2010. For condominiums, the average days-on-market was 27 days, 5 days off the pace set in June and 4 days quicker than July 2010.