Tag Archives: winnipeg real estate market

Variable rate mortgage rates hovering on historic low

With the Royal Bank of Canada’s implementation of the latest round of mortgage rate increases last week, banks and other major lenders have begun lowering the discounts for floating rate mortgages.
 
Even with the new 2.6 per cent rate average on variable-rate products, however, this is still considered by industry observers to be among its historically lowest levels. To compare, fixed-rate mortgages with five-year terms currently enjoy a rate of 3.04 per cent.
 
Experts noted that such stretches of low rates allow variable-rate buyers to save more, although the option essentially removes the safety blanket of a stable rate throughout the term. The RBC raise gave incentive to some banks to get in lockstep, though.
 
“The spreads were narrowing and that causes us to raise rates,” Bank of Nova Scotia’s real estate lending head David Stafford told the Financial Post, elaborating on the bank’s move to implement a similar average on variable-rate products.
 
Industry players said that these numbers are the reason why lenders continue to offer cut-off primes of 50 basis points for variable rate mortgages, as banks profit less from floating rates than from borrowers locking in their loans.
 
“We kind of chuckled when they raised rates because we have some lenders dropping rates. The big banks are trying to move people out of the variable (and get them to lock in),” MonsterMortgage.ca owner and broker Vince Gaetano told the Financial Post.
 
Source: Mortgage Brokernews

Winnipeg Realtor Real Estate News — Winnipeg Real Estate Market December 2015 Sales Up 4%

2015 SALES SOLID WITH PRICES HOLDING FIRM
–           –           –
December Sales Up 4%

WINNIPEG –   2015 finished on a strong note.  Following on the heels of a record sales month for November, December sales of 642 were up 4% from last December. They are the third highest for this month, and are only behind the best sales years ever by a very modest amount.
 
“It is really quite remarkable how close our year-end sales have been in the last few years including our highest sales year in 2007,” said WinnipegREALTORS® outgoing president David MacKenzie. “They all tend to hover just above or close to the 13,000 level and in percentage terms we are only talking a little over 1% when we compare the 12,927 sales recorded this year to the 13,079 in 2007.”
 
While sales and even prices have shown consistent and similar results, listings have not chartered the same path. The number of listings entered on the MLS® were 24,603 in 2015, up 7% over 2014, and 41% over the 10-year average of 17,433. With an increase in listings but sales remaining consistent, the market’s inventory has also been rising month to month. This is borne out in having over 5 months of inventory available going into 2016.
 
“Buyers are in a great position to take advantage of a current market which is providing a large number and array of properties for sale and ones which remain some of the most affordably-priced in the country,” said Mackenzie. “Sellers need to take heart knowing WinnipegREALTORS® is still enjoying one of the best sales years it has ever had. They need to be aware however that more competition for those sales creates more downward pressure on prices since supply is outstripping demand.”
 
An indicator of stiffer competition for selling your home is evident when you see the number of single family home sales selling below list price.  Properties below list accounted for  65% in 2014 but now represent 75% of the market in 2015. In December alone 87% of all single family home sales sold below list price. Of the single family or residential-detached listings which sold in 2015, on average they achieved 98% of the total list price.
 
When 2015 was all said and done a new MLS® dollar volume record was established at $3.5 billion. This resulted in a 2% increase over 2014. Despite sales being higher this December from December 2014, dollar volume actually fell 2.89% when compared to December 2014.
 
It was a tale of different stories when it came to the two primary MLS® property types. Residential-detached performed exceedingly well with sales and dollar volume up 3 and 5% respectively in comparison to 2014. On the other hand, condominiums never recovered from an unexpectedly poor first quarter where sales were off by 20%. By year end this deficit was cut in half but nonetheless represented a 10% decrease compared to 2014.
 
The average sales price for residential-detached was $293, 992, a 2% increase over 2014. The average condominium sales price showed a 1% decrease from $239,171 in 2014 to $236,204 this year.
 
Residential-detached represented nearly 3 out of every 4 properties which sold on MLS® in 2015. Condominium market share was 12.5%. 25% of residential-detached sales in 2015 happened outside Winnipeg in the capital region. The southwest quadrant of Winnipeg was second with 19% of total sales.
 
The most active price range for residential-detached sales in 2015 was $250,000-$299,999 (22% of total sales), followed by the $200,000-$249,999 (17%) and the $300,000-$349,999 (14%).  Average days on the market for residential-detached sales was 33 days, 3 days slower than 2014. The highest-priced residential-detached sale was $2.7 million. The least expensive sale was $8,000.
 
The most active price range for condominiums in 2015 was $150,000-$199,999 (30% of total sales), followed by the $200,000-$249,999 (20%) and the $250,000-$299,999 (18%). Average days on market for condominium sales was 49 days, 9 days off the pace set in 2014. The highest-priced condominium sale was $950,000. The least expensive sale was $57,000.
 
Looking ahead to 2016, Manitoba’s GDP is expected to increase to 2.3% which is an improvement over the expected increase of 2.0% in 2015. In keeping with one of the country’s best GDP’s, Manitoba’s employment is forecast to grow by 1.6% in 2015 and 1% in 2016. This will keep its unemployment rate below 6%. Manitoba had Canada’s second highest population increase of 1% in 2015.
 
“While we do have an abundance of listings to work our way through at the beginning of the year, the good news is Winnipeg’s and Manitoba’s economy is performing relatively well,” said MacKenzie. “A most recent survey by CIBC shows Manitobans are most confident about their state of finances so this is another positive indicator that they will continue to take advantage of an excellent selection of properties for sale at some of the most affordable prices in the country.”
 
Established in 1903, WinnipegREALTORS® is a professional association representing over 1,850 real estate brokers, salespeople, appraisers, and financial members active in the Greater Winnipeg Area real estate market.  Its REALTOR® members adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service® (MLS®) designed exclusively for REALTORS®. WinnipegREALTORS® serves its members by promoting the benefits of an organized real estate profession.  REALTOR®, MLS® and Multiple Listing Service® are trademarks owned and controlled by The Canadian Real Estate Association and are used under licence.
 

Finance minister announces down payment rule changes

by Justin da Rosa 11 Dec 2015
 

 

New down payment rules will go into effective February 15, 2016.

 
“The Government’s role in housing is to set and maintain a framework that is equitable, stable and sustainable. The actions taken today prudently address emerging vulnerabilities in certain housing markets, while not overburdening other regions,” Finance Minister Bill Morneau said in a release. “They also rebalance government support for the housing sector to promote long-term stability and balanced economic growth.”
 
The minimum down payment for new insured mortgages will increase from 5% to 10% for the portion of the house price above $500,000, the finance ministry wrote.
 
Minimum down payment for properties up to $500,000 will remain at 5%.
 
The changes are meant to reduce taxpayer exposure while supporting long-term stability of the housing market, according to the ministry.
 
“This measure will increase homeowner equity, which plays a key role in maintaining a stable and secure housing market and economy over the long term,” Morneau said. “It also protects all homeowners, including many middle class Canadians whose greatest investment is in their homes.”
 
Source: RepMag.ca

Fewer starts, more resales from the Winnipeg Real Estate Market

Slow but steady growth forecast for Winnipeg’s housing market

 

Finance. For Sale signs for condos in South Pointe.  It’s to go with a story on September’s MLS sales and housing start numbers. It was a good month for both MLS sales and housing starts. Murray McNeill story.  Wayne Glowacki / Winnipeg Free Press October 8 2015

Finance. For Sale signs for condos in South Pointe. It’s to go with a story on September’s MLS sales and housing start numbers. It was a good month for both MLS sales and housing starts. Murray McNeill story. Wayne Glowacki / Winnipeg Free Press October 8 2015


 
The resale market is expected to chug along in the next few years even though home-building will slow down because there is more supply than demand. New projections were released Monday. Photo Store
 
Rising inventory will take some of the steam out of the local home-building market over the next few years, but healthy population and employment growth should keep the resale market chugging along, the fall forecast by Canada Mortgage and Housing Corp. shows.
 
“Total starts (in the Winnipeg Census Metropolitan Area) will continue to come down from the 2013 peak over the forecast period,” Lai Sing Louie, CMHC’s regional economist for the Prairie region, said Monday.
 
“Rising inventory in the multi-family sector will prompt builders to reduce production in 2016 and 2017, offsetting slight increases in single-detached construction.”
 
The agency predicts total starts in the Winnipeg CMA will drop by 7.6 per cent this year, falling to 3,925 units from 4,248 in 2014. And they will continue to drift down during the next two years, falling to 3,800 units in 2016 and to 3,750 units in 2017.
 
Manitoba Home Builders Association president Mike Moore agreed builders of multi-family complexes — condominiums, townhouses and rental apartments — will likely postpone some new projects next year until they can significantly reduce the inventory of unsold units.
 
“But I think the inventory will be pretty much gone by then (the end of 2016) and it will be time to start building again,” he added.
 
“So I’m a little more optimistic about (2017). I think the numbers will be slightly better than is forecast — by a couple of hundred units. ”
 
As for the single-family side, Moore said the industry would be satisfied to see starts continue to grow at a slow but steady pace during the next few years.
 
“That’s good news for the bulk of our builders who are single-detached builders.”
 
CMHC also expects the local resale market to continue chugging along during the next couple of years as population and employment continue to grow. But the growth in MLS sales will be modest — less than one per cent in 2016 and 2017, it said.
 
Balanced market conditions should keep price increases in check. The average MLS selling price is expected to climb by 1.7 per cent to $278,000 this year, and by 1.4 per cent in both 2016 and 2017.
 
Peter Squire, residential market analyst for the Winnipeg Realtors Association, said those prices are in line with industry expectations.
 
Although sales of detached homes are up a bit this year, condo sales are lagging, he said.
 
It will likely be a similar story in 2016.
 
“That (the inventory of unsold condos) will have to work its way through, and it will,” he said.
 
CMHC’s fall forecast also looks at what’s likely to happen in the Manitoba housing market, and it’s a similar story. Housing starts are expected to fall to 5,600 units this year from 6,220 in 2014, hold steady at that level in 2016, and rebound to 5,700 units in 2017.
 
Like Winnipeg, MLS sales will continue to climb at a moderate pace in the next two years, rising to 14,200 units in 2016 and to 14,400 units in 2017, the agency added. The average selling price will creep up, rising to $273,600 in 2016 and to $277,500 in 2017.
 
murray.mcneill@freepress.mb.ca
 
CMHC fall housing forecast
 
Here are the Canada Mortgage and Housing Corp.’s projected numbers for the Winnipeg and Manitoba housing markets, with the percentage change from the previous year in brackets:

Winnipeg CMA* 2014 2015 2016 2017
Housing starts 4,248 3,925 (-7.6) 3,800 (-3.2) 3,750 (-1.3)
MLS sales 12,147 12,300 (1.3) 12,400 (0.8) 12,500 (0.8)
Average selling price $273,363 $278,000 (1.7) $282,000 (1.4) $286,000 (1.4)
Manitoba 2014 2015 2016 2017
Housing starts 6,220 5,600 (-1.0) 5,600 (0) 5,700 (1.8)
MLS sales 13,782 14,000 (1.6) 14,200 (1.4) 14,400 (1.4)
Average selling price $266,329 $269,800 (1.3) $273,600 (1.4) $277,500 (1.4)

* Census Metropolitan Area
 
Republished from the Winnipeg Free Press print edition October 27, 2015
 
Source: http://www.winnipegfreepress.com/

Winnipeg Real Estate News – September Sales Better than Average at 1,144

Winnipeg real estate News Logo

YEAR-TO-DATE SALES OF 10,298 JUST AHEAD OF 2014
–           –           –
September Sales Better than Average at 1,144

 

WINNIPEG – September MLS® sales activity and the year-to-date pace is indicative of a steady market.  It is tracking very closely to 2014 as was forecast.  2014 saw Winnipeg
REALTORS®’ 5th highest MLS® sales result in its 112-year history.

 

If we even use the third quarter or the past 3 months as an example, and look back over 3 years including 2015, it is quite remarkable how similar they are. Some may say nearly identical as there is a difference of only 7 sales between the highest and lowest sales results.  In order of highest third quarter MLS® sales to lowest they are as follows: 2013 – 3,803; 2014 – 3,802; 2015 – 3,796. You would be hard pressed to find such a minimal sales difference in any other major Canadian real estate market.

 

“They are not headline grabbing numbers,” said WinnipegREALTORS® president David MacKenzie. “What they tell us is we are very much in a narrow range of monthly MLS® sales results when up against the same month in 2014. Stability lives here and that is an attribute we can feel positive about in a world full of uncertainty.”

 

September MLS® sales of 1,144 were off 3% from September 2014.  However, they are over 2% higher from the 10-year September average.  There has only been one September when sales climbed over 1,200. Despite sales being down 3% from September 2014, dollar volume of $307 million eclipsed last year’s level of $305 million and is the highest MLS® dollar volume on record for September.

 

Year-to-date dollar volume is now over $2.8 billion, up 2% from 2014.  At 10,298 sales, year-to- date sales are in a virtual deadlock with 2014 as a mere 20 more sales have been processed through WinnipegREALTORS® MLS® in 2015 when compared to the same period in 2014.

 

More activity has emerged in the last few years with listings. Winnipeg is in a far more balanced market with 5,538 MLS® listings available at the end of September.  This equates to roughly 5 months of supply if no new listings were to come onto the market.

 

Single family homes represent the most at 3,110 while condominiums are well back at 860. There are another 708 vacant land listings.

 

“People in the market who are looking to buy property are well placed at this time to take advantage of a healthy supply of all MLS® property types within our market region,” said David MacKenzie. “They should be calling their REALTOR® as they will advise them on what specific choices they have within the property type and location they are interested in living.”

 

The most active price range in September for residential-detached sales was $250,000-$299,999 (24% of sales), followed by the $200,000-$249,999 (19%) and $300,000-$349,999 (12%).  Average days on market for residential-detached sales was 35 days, 2 days slower than September 2014. The highest priced residential-detached sale was $1,150,000. The least expensive sale was $39,500.

 

The busiest condo price range was $150,000-$199,999 (30% of sales), followed by the $200,000 to $249,999 (22%) and $250,000- $299,999 (16%).  Average days on market for condominium sales was 56 days, 16 days slower than September 2014. The highest-priced condo sale was $482,500 and the lowest-priced sale was $72,500.

 

Established in 1903, WinnipegREALTORS® is a professional association representing over 1,880 real estate brokers, salespeople, appraisers, and financial members active in the Greater Winnipeg Area real estate market.  Its REALTOR® members adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service® (MLS®) designed exclusively for REALTORS®. WinnipegREALTORS® serves its members by promoting the benefits of an organized real estate profession.  REALTOR®, MLS® and Multiple Listing Service® are trademarks owned and controlled by The Canadian Real Estate Association and are used under licence.

 

Source: Winnipeg Real Estate News
 

Message from Winnipeg Realtor Rosalie Drysdale

If you are in the market to sell or upgrade your home. Please contact my Real Estate team and we will show you how to get the best dollar value for your home. Selling Homes from thousand dollar to million dollar homes, we can help you find what you are looking for or selling your home.
 
999-rose -- For Sale

Four Bedroom Home at 315 Waverley Street, Winnipeg

315 Waverley St-1

One of River Height’s Best Streets. Long time owner. Excellent family home. 4 large bedrooms upstairs. 2 full bathrooms.

315 Waverley St-3 315 Waverley St-4

Wide HARDWOOD staircase to 2nd floor. Mezz. balcony. Beautiful living room – tons of daylight through large windows. Wood burning Fire Place with mantel.

315 Waverley St-7 315 Waverley St-8 315 Waverley St-10 315 Waverley St-11

Lg dining room off kitchen plus eat-in kitchen dinette with tons of windows overlooking gorgeous backyard. All newer stainless steel kitchen appliances. Newer counter tops and new hardware on cabinets. HARDWOOD flooring throughout – in very good condition

315 Waverley St-13 315 Waverley St-14

Showings start Wednesday, Sept. 23. Offers anytime after showing start date. Call Realtor Rosalie to set up a appointment to view your new home.

315 Waverley St-28

More pictures and information on this Home at  315 Waverley Street following the link.

 

 

5 Reasons to Hire a Real Estate Professional Today !

5 Reasons To Hire A Real Estate Professional Today | Keeping Current Matters
 
Whether you are buying or selling a home, it can be quite an adventurous journey. You need an experienced Real Estate Professional to lead you to your ultimate goal. In this world of instant gratification and internet searches, many sellers think that they can For Sale by Owner or FSBO.
 
The 5 Reasons You NEED a Real Estate Professional in your corner haven’t changed, but have rather been strengthened due to the projections of higher mortgage interest rates & home prices as the market continues to recover.
 
1. What do you do with all this paperwork?
 
Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true Real Estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.
 
2. Ok, so you found your dream house, now what?
 
According to the Orlando Regional REALTOR Association, there are over 230 possible actions that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, who knows what these actions are to make sure that you acquire your dream.
 
3. Are you a good negotiator?
 
So maybe you’re not convinced that you need an agent to sell your home. However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a Real Estate Professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, there are at least 11 different people that you will have to be knowledgeable with and answer to, during the process.
 
4. What is the home you’re buying/selling really worth?
 
It is important for your home to be priced correctly from the start to attract the right buyers and shorten the time that it’s on the market. You need someone who is not emotionally connected to your home to give you the truth as to your home’s value. According to the National Association of REALTORS, “the typical FSBO home sold for $208,700 compared to $235,000 among agent-assisted home sales.”
 
Get the most out of your transaction by hiring a professional.
 
5. Do you know what’s really going on in the market?
 
There is so much information out there on the news and the internet about home sales, prices, mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively price your home correctly at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a low-ball offer?
 
Dave Ramsey, the financial guru advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Hiring an agent who has their finger on the pulse of the market will make your buying/selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.
 

Bottom Line:

 
You wouldn’t replace the engine in your car without a trusted mechanic. Why would you make one of your most important financial decisions of your life without hiring a Real Estate Professional?
 
Source: KeepingCurrentMatters.com

First-time home buyers are now a strong factor in the Canadian real estate market


 
A new survey has revealed that first-time home buyers are significant drivers of the current housing market, making up 45 per cent of the 620,000 homes sold in the past 27 months.
 
While 18 per cent of their down payments are still coming from the bank of mom and dad, 53 per cent are using their own or their co-buyers’ personal savings, according to A Profile of Home Buying in Canada, the latest consumer survey report released by the Canadian Association of Accredited Mortgage Professionals (CAAMP).
 
“There is intense interest in the Canadian housing market, especially from first-time buyers,” said Jim Murphy, president and CEO of CAAMP.
 
“CAAMP’s spring report focuses specifically on this group and we can say with confidence that first-time home buyers are some of the most engaged, enthusiastic and well-researched groups in the market.”
 
As outlined in the report, first-time buyers on average are able to put $67,000 down as the first payment on their new home. This represents 21 per cent of their average purchase price, freeing them from the additional cost of mortgage insurance.
 
When asked whether a change of the minimum down payment to 10 per cent would affect their ability to purchase, 27 per cent of first-time buyers said they would probably not be able to afford their home.
 
Canadian first-time buyers also shared their reasons for purchasing a home. The most popular reason was to stop renting (51 per cent), while many others claimed that a change in personal circumstance (e.g., getting married or moving out of their parents’ homes) and a change in their financial situation (e.g., saved enough money) were their primary reasons to purchase.
 
Another interesting reason was buyers’ perceptions about the advantages of owning a home, such as providing financial security and the pride of owning a home.
 
While 47 per cent of first-time buyers are optimistic about the economy in the upcoming 12 months, Will Dunning, the chief economist of CAAMP, expresses concern. Job creation has slowed over the past two years creating a risk that could have a domino-effect on the entire Canadian economy.
 
Fewer jobs means reduced activity in both the resale market and new housing construction.

Housing demand in much of Canada is also slowing, with resale activity moderating or prices flattening, with the exception of major markets like Vancouver and Toronto where skyrocketing prices are due to issues of supply and demand.
 
“Overall our local market is balanced and offers plenty of choice for discerning buyers to find their preferred property,” said WinnipegREALTORS® president David MacKenzie.
 

Profile of first-time buyers:
 
• Most are between 25 and 34 years old.
 
• About half have household incomes below $80,000, while one-third have incomes of $100,000 or more.
 
• Average price spent on a home by first-time buyers is $308,100, and the most common price range was between $200,000 and $249,999, a common price range in Winnipeg.
 
• The largest source for down payments in all buying groups including first-time owners is personal savings.
 
• Withdrawals from RRSPs made up 10 per cent.
 
• TFSA withdrawals were highest among first-time buyers at five per cent.
 
• Most first-time buyers purchased single-detached homes (47 per cent), followed by condominiums (22 per cent).
 
• On average, most buyers expected to shorten their amortization by five years, although first-time home buyers thought they could shorten their payment period by 4.3 years.
 
• First-time buyers gave the most consideration of all buyer groups to interest rates increasing in the future.
 
• First-time owners consulted an average of 1.2 mortgage professionals and obtained 1.7 mortgage quotes; 61 per cent consulted a mortgage broker and 39 per cent said they obtained their mortgage from the broker.
 
• Seventy-nine per cent of first-time buyers were employed full-time and 82 per cent were confident their employment was secure.
 
• Sixty-four per cent of first-timers consider a mortgage “good debt.”
 
Source: Winnipeg real estate News Logo