It seems like I haven't worn summer clothes a few times yet, but it's already chilly in the morning and evening. Are you all doing well in preparation for the fall? For those of you who are looking for the fall/winter market past the hectic summer market, please refer to the analysis of WINNIPEG market below and hope that you will finish in a pleasant 2020.
The Hot Streak
This summer in WINNIPEG, the real estate market was hot. It completely overturned the expectations of the real estate market stagnating due to Covid19 in April, and sales rates in June (+24.15%), July (+31.81%), and August (+28.21%) compared to last year were significant. The spread of corona virus, and low mortgage rates caused a shortage of inventory, and an increase in buyers caused an increase in the sale rate. There were still many sales closings in August with multi-offers as June and July.
August 2020 vs. 2015-August 2019 All MLS Sale Results (All Property Types & Areas)
If you look at the table above, you can see that inventory in 2020 is -29.70% down compared to in 2019, and sales have increased by 28.21%. This led to a 2020 listing-to-list sales rate of 43.60%, the highest number in the past five years. The sales rate compared to the new listings in August is over 77%.
Current Residential Market
72% of all Manitoba real estate sales are in the single-detached house market. And 70% of the housing market is located in WINNIPEG. Therefore, let's analyze the real estate market in August, focusing on the housing market analysis in WINNIPEG.
The increase in overall sales in WINNIPEG was driven by an increase in home sales. There were 874 sales in August 2020 alone, an 18.75% increase from 736 in August 2019.
The table below shows the ratio of the listing price to the sale price. This allows you to see if the WINNIPEG housing market is beneficial to sellers/buyers. In August 2020, the % over list was 30% or more (the percentage of homes sold at a higher price than the listing price suggested by the seller). Combined with the percentage sold at the seller's suggested price (= list price), it indicates that more than 37% of the sales were sold in favor of the seller. This means that 1 out of 3 properties was sold with competitive offers. Compared to this time of last year, and you'll see it has increased, we can confirm that this real estate market was in great favor for sellers.
Current Condominium Market
The WINNIPEG condominium market also showed the same pattern as the housing market. Reduced inventory and increased number of buyers resulted in an increase in sales versus listing.
However, the total number of sales itself is not so large that the range of change is not as large as that of houses.
May-June, commonly referred to as the spring market, is the peak of the real estate market. It has the highest sales rate every year, and the number tends to decrease with fall. In 2020, the number of sales was very low due to the coronavirus in April, but after the recovery period in May, it recorded higher sales than any other year from June to August. The number of sales itself is higher than in other periods, but, like the pattern of the last five years, you can see that the number has gradually decreased since June this year.
Looking at the change in the number of sales from 2015 to September to December 2019, the sales decrease as it gets colder. This year, it is expected that the number of sales will gradually decrease, as in the past five years, unless the spread of the corona or the mortgage rate changes significantly.
There is an increase in real estate prices due to a lack of inventory and an increase in buyers. However, as long as there is no dramatic change in that number than now, the final real estate price will be the same as it is now or will increase slightly, and it is expected that the real estate market will close in 2020.