Winnipeg's current Real Estate market

There have been a number of articles recently published stating that are current market is overvalued and doomed for a crash of sorts. CMHC (Canada Mortgage and Housing Corporation) recently published a report that stated Winnipeg is at High risk for a correction. That report has recently been challenged by the WRA (Winnipeg realtors association) and CMHC has indicated that they may have incorrect information and will review their report.

There is no question that are real estate market has slowed somewhat from the incredible pace it was on in the past 10 years but there is no indication that we are headed for a crash. What I can tell you are the numbers that are currently available. The biggest indicator of a more balanced market is the absorption rate that we have. This is the number of active listings divided by the number of sales, for example if we had 20,000 active listings and averaged 4,000 sales per month our absorption rate would be 5 months. This would be considered a balanced market between buyers and sellers. The past number of years we have been closer to an absorption rate of 1-2 months making it much more of a sellers market. Currently the absorption rate is sitting at approximately 4.5 months and has been slowly rising since 2012. I t would be unrealistic for us to expect our market to continue to grow at the same rate forever.

So we head into a more balanced market, what does this mean to you the consumer. The numbers for October showed sales were up for Residential detached (4.02), Residentail attached (1.92%), Duplexes (10.74%) and down for Condominiums (13.47%) This shows us that real estate continues to sell and although the average days to sell is up, properties are still being purchased.

As we moved forward into the winter months there is a great opportunity for those who want to move in the near future. The average sales to listing ratio in Novemeber and December is approx 20% higher than the April/May season. so if your thinking of buying or selling now is the time to hit the market running. As always each situation is unique and I would be glad to take the time to discuss your situation in detail, so you are more informed and assist you in your real estate needs.

Doug Court is a professional sales associate with Re/max executives realty in Winnipeg, Manitoba, Canada

He is been an award winning salesman since 1987, and a current memebr of the Prestigous Re/max Hall of Fame

Doug can be reached at 204-292-9090 or e mail dougcourt@shaw.ca