Housing market experiences a ‘return to reasonable’ October’s sales, prices both fell, nearing a return to pre-pandemic levels By: Gabrielle Piché Posted: 7:00 PM CST Tuesday, Nov. 8, 2022

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This article was published 07/11/2022 (681 days ago), so information in it may no longer be current.

Manitoba’s housing market is experiencing a “return to reasonable,” industry experts say.

Last month, the Winnipeg Regional Real Estate Board tracked 1,063 home sales. It’s a 30 per cent decrease from October 2021 and a 33 per cent drop from the year prior.

The average single family home price dropped roughly $2,500 from September, to $377,000. It fell 1.2 per cent from October 2021’s average home cost.

“We’re in very good shape,” said Michael Froese, a managing broker with Royal LePage. “We were in an unreasonable real estate market for 18 months… the return to reasonable is in effect right now.”

There are still bidding wars, but they aren’t nearly as common as during the housing market’s boom earlier this year, noted Akash Bedi. Then, Winnipeg homes might go for $100,000 over asking price.

“When we’re in a balanced market… it does create less of a stressful environment for both buyers and sellers,” said Bedi, a real estate agent and president of the Winnipeg Regional Real Estate Board.

October’s home sales align with pre-pandemic averages, according to the board. The five-year average for October is 1,105 sales, a WRREB news release states.

The most in-demand houses last October cost less than $350,000. Half of sales fell under that category, while another 13 per cent landed in the $350,000 to $399,999 range.

“The majority of the activity is in the lower price ranges,” Bedi noted. “People want to lock in a mortgage, or at least purchase before their pre-approval expires.”

Many buyers are prioritizing beating their deadlines as the Bank of Canada continues to hike interest rates. The central bank has increased its key interest rate from 0.25 per cent to 3.75 per cent since March.

Another jump is expected in December.

“You cannot buy everything you want,” said Luvi Cansino, a Giant Tiger shopper.

Cansino deal-hunted Tuesday — she’s been feeling the pinch from inflation and rising interest rates. Her mortgage’s variable interest rate has almost doubled since buying her home five years ago, she said.

“It’s scary, because you don’t know what you’re getting into,” Juan Castillo, another Giant Tiger customer, said of the housing market.

“It’s scary, because you don’t know what you’re getting into.”–Juan Castillo

He fears Winnipeg homes will soon drop in value.

That won’t be the case, according to Royal LePage’s Froese.

Average home prices have dipped, but they’re well above pre-pandemic numbers. The average single-family house in October 2019 cost $315,889, around $62,000 less than this year’s statistic.

“Any more (price) softening is very unlikely to go back to those levels,” Froese said.

He predicts the market will stay balanced over the coming months; it usually slows in the winter. If it does tip to be more favourable for buyers, it won’t be “a heavy buyers’ market,” he said.

On average, single-family homes sat on the market for 31 days in October. Condos sold quicker — they were on sale an average 29 days.

Seventy per cent of the month’s condo sales fit the under $300,000 price range. Most of those, 23 per cent, fell in the $150,000 to $199,999 range.

The average condo cost $260,898.

Southwest Winnipeg held the title for the city’s most expensive homes, averaging $497,195 for a single-family unit. It’s a decrease from the peak average of $587,865 last April.

gabrielle.piche@winnipegfreepress.com