Winnipeg Real Estate Market Continues to See Record Breaking Activity

During 2021, the real estate market in Manitoba has been seeing record-breaking sales activity and housing prices. Known as one of Canada’s prairie provinces, Manitoba is centrally located, nestled between Ontario and Saskatchewan. Boasting a low cost of living and lots of diverse employment opportunities, Manitoba is the perfect spot for those looking to retire, raise a family, or buy their first home. Let’s explore the latest data and trends in the Winnipeg real estate market.

Winnipeg is the metropolitan centre of Manitoba. Serving as home to more than 740,000 people, the city is 14 times larger than the second largest city in the small, rural province. Giving residents all the joys of a larger city mingled with a small-town feel, Winnipeg has quickly become one of the hot home-buying spots in Canada, particularly over the past year as the nation grappled with a global pandemic. Yet, even as vaccination rates increase and we emerge from the deep depths of COVID-19, Winnipeg’s real estate market is still showing strong signs of growth.

Winnipeg Real Estate Market Setting Records

After a phenomenal spring buying and selling season, the real estate market in Winnipeg continues to heat up in tandem with the outdoor temperatures. With 1,943 unit sales in the month of June, the city experienced a 2% year-over-year increase in this metric, which is also 14% above the 5-year average for the month. These heavy sales numbers have meant that 78% of all listings on the Multiple Listing Service (MLS) this year have been sold.

Kourosh Doustshenas, President of the Winnipeg Real Estate Board takes note of the strong June sale numbers: “sales are coming down off their peak in April 2021, and more closely aligned with 2020. June 2020 was the first month when sales rebounded strongly after the pandemic economic shutdown. 2021 dollar volume gains remain in the double-digits and represent strong upward price movement compared to 2020.”

Strong sales numbers for the month led to the dollar volume also shooting up 16% when comparing June 2021 to June 2020. With $677.5 million in sales volume for June, it is safe to say that high unit sales combined with increasing prices have led to a lucrative market for sellers. Manitoba Real Estate Association President, Stewart Elston, makes note of the incredible unit sales and sales volumes recently posted in the province, “since March, we’ve seen 2,000-plus sales each month and dollar volume around $700 million. These levels represent a new benchmark for monthly home sales in Manitoba – levels unseen prior to COVID-19.”

With such high demand, it was expected that the Winnipeg market would follow the trend that the rest of Canada has set in that supply would begin to dwindle. While new listings on the market in June 2021 saw a decrease of only 12% compared to June 2020, the strong unit sales contributed to the current inventory slimming down to just 2,791 units – a decrease of 39% compared to June 2020. Doustshenas comments on the high demand: “a true hallmark of this year has been the unprecedented buyer demand for all property type listings with major percentage gains in sales from 2020.”

Not only did June post strong numbers to cap off the second quarter of 2021, but it also closed out an impressive first half of the year. Year-to-date sales totalled 10,131 at the end of the month, an increase of 49% compared to last year and 35% over the 5-year average.

The substantial gain in demand, which has not been met by supply, has resulted in prices surging – specifically in regard to single family homes. In the first half of the year, the average price of a residential-detached home is $381,053. While this is far below the national average, it is a 16% year-over-year increase for Winnipeg. In order for prices to level back out, an infusion of fresh supply is desperately needed. Until that happens, the city should anticipate average prices continuing to climb.

What to Expect in the Second Half of 2021 for the Winnipeg Housing Market

Thus far in 2021, Winnipeg has witnessed unprecedented levels of unit sales, sales volume, and jaw-dropping demand. Marina R. James, CEO of the Winnipeg Regional Real Estate Board notes, “a very dynamic real estate market has unfolded in 2021, with changes in prices not seen in years.” That said, if you are in the market to sell your home in Winnipeg, the time is now. If you are in the market to buy, don’t hesitate, as prices may be rising even further as the year progresses. However, by mid-2022, a modest cooling of the market is anticipated, so keep that in mind as you plan your real estate endeavours.

Sources

CREA Winnipeg Stats
Winnipeg Sun
Winnipeg Regional Real Estate Board