May 2023 Real Estate Market Update
Is spring 2023 turning into a great 'Buyers Market'? When comparing listings and sales, year over year, there is no doubt that numbers are looking favorable for home and condo buyers in Winnipeg. Let's take a look at the stats of the month of April 22 and April 23. As we can see from the 'ALL MLS' graph, active available listings (all types of houses and condos) are up 70% over last year, same time. They are actually right in line with the 5-yr average of available listings (3,548) At the same time, property sales are down by 24% from last year...... as well as being down 17% from the 5 yr average. Detached Homes in Winnipeg The numbers for stand-along houses (detached homes) is even more telling. The active listings for the Winnipeg Real Estate Board area are 1,761, which is nearly double (+84%) of the active listings in April 2022, which were 956. At the same time, sales are off by 25% when compared to last year. So these numbers alone would suggest a nod towards a buyers market. Since there are MORE HOMES for sale, and FEWER sales happening, buyers overall face less competition, more choices and fewer bidding wars. But the story does not end there. Take a look at the average prices: Last year the average detached home sold for $447,295 while this year its $409,286, a drop of 9%. A third sign of a buyers market. Increased Inventory Lower buyer activity Lower home prices Attached Homes in Winnipeg How about the so-called attached homes. These are side-by-sides and townhomes. Home builders have been constructing these as an alternative for first time buyers. Since they use less land, and less building material, they are quite a bit cheaper to build. Let's see how those are faring: Here active listings are actually more than double, going from 122 in 2022 to 252 this year. Sales are off 28%, from 109 last year to 79 in April 2023. And prices are also down 28%, to an average of $326,995. So the story is very much the same as it is with detached homes.......more availability, less competition among buyers and lower prices to boot. Condominiums in Winnipeg Does the story repeat for condos in Winnipeg as well? Yes, but not the same extreme. The 484 available condominiums are a 42% increase over last year, which sales are off by 24%. Last April we sold 224 condos, whereas this year we only sold 171. However prices have remained fairly stable, dropping just 1% for the average sale, from $261,802 last year to $258,571 this year. What about interest rates? While all those numbers point to a more buyer-friendly environment, some folks point to the higher interest rates as a deterrent. Here is another way to look at this "Interest rates will go up and down, but the purchase price is forever." Unless you're lucky (or wealthy enough) to pay your mortgage off in 5 yrs, you will most likely have to re-new it a few times. Each time you will be subject to the current interest rates of the day. Your mortgage payment will, of course, be based on your current outstanding debt. And right now, you can buy a house for around 10% less than last year. PLUS have more homes to choose from, AND fewer bidding wars than last year. All of this adds up to an encouraging sign for home buyers. If you're interested in exploring your options, and see how much home your current pre-approval will buy for you, call me to set up a free buyer consultation.
