M LS® SALES REACH NEW JUNE RECORD HIGH OF 1,638 - MLS® Sales Up 9%; MLS® Dollar Volume Rises 13%

WinnipegREALTORS® Press Release, July 11, 2016

WINNIPEG - Back to back months of the second and third best months ever on record with 1,638 transactions in June and 1,629 in May makes 2016 the most active year for the first six months and second quarter. Only May 2007 is higher than this June at 1,652 sales. The next busiest second quarter on record was in 2008 when again there were back to back outstanding monthly results with May and June each recording 1,564 sales.

Sales were up 9% in June over the same month last year and the identical percentage increase for the first six months in comparison to the same period in 2015. It is the first time WinnipegREALTORS® has surpassed 7,000 MLS® sales in six months.

“There is no question the perfect storm I spoke of earlier in the year is materializing,” said Stewart Elston, president of WinnipegREALTORS®. “The Winnipeg real estate market is supported by strong underlying fundamentals. Helping us reach new heights is the excellent supply of MLS® listings with much to choose from throughout the market region. The difference between this year and last year is stronger buyer sentiment and therefore higher conversions of listings to sales.”

Single family homes led the way to this impressive June result with 1,252 sales or 76% of total MLS® sales. Condominiums did not perform as well in comparison to the previous two years but still very respectable at 187 sales or over 11% of total MLS® sales.

Eager buyers vying for coveted single family home listings translated to more above list price offers this June in comparison to last month and June 2015. Over one in four sold for above list price while last June 17% sold for above list price. As for condominiums only 5% sold for above list price in June. However 22% of condos achieved list price.

MLS® dollar volume of $472.3 million is up 13% over June 2015. It is the highest monthly dollar volume on record. Year-to-date dollar volume of close to $2 billion has risen 11% over the first half of 2015.

“2016 is exceeding our initial forecast and expectations for MLS® sales this year,” said Elston. “Recent news of a record-breaking 12-month increase of 19,453 people to our province and 63,119 individuals in the last four years is certainly a contributing factor. Along with population growth and a younger demographic comes an increased number of births which often triggers demand for housing. It is worth noting our own membership numbers have been increasing in the last few years and now sit at over 1,900 members.”

Price growth this year is more in line with the forecast for single family homes. A healthy supply of listings for the most part is keeping price increases in check. The chart below illustrates subdued price appreciation for all quadrants of Winnipeg and a similar pattern in the outlying rural municipalities when comparing the first half of 2016 to the same period in 2015.