Did The Government Help Home Buyers?

    I thought I'd take a minute talk about the recent budget changes aimed at helping first time home buyers. Bear in mind that what I write here is my opinion on topics, and in every case it's worth the conversation!
   Let me start with this: Any change aimed at helping home buyers, especially first time home buyers, is a good change. Let's start with a "glass half full" perspective! Could the government have done more, or even other things that would have a bigger impact? Probably. But let's take what we were given and see what we can do with it.
    They made really two key announcements, one of which has already taken effect, another that won't be fully fleshed out until the fall, so it's important to reserve judgement on it until we know all the details, but we'll look at what we know.
    Let's start with one we can use now: The change to First Time Home Buyer RRSP withdrawal plan. It used to be that, as a first time buyer you could take up to $25,000 from your RRSP, tax free, to use for down payment and closing costs. Now you can withdraw up to $35,000. So, the positive in this is, of course, an extra ten grand can go a long way to helping lower your costs and/or payments. But bear in mind that you do need to repay whatever you take out within 15 years, with yearly payments. So while you've now taken on a mortgage, you'll also have the RRSP payment as well. (Or, if you don't pay it back, you'll be taxed on the yearly amount as taxable income). I also wonder how many first time home buyers will have $35,000 already saved. But if you do, this MAY be something you can look at. There is a second part to this plan that won't be launched until 2020, and that is that when spouses separate/divorce, they will be able to access this plan as well. Again, not a huge share of the market, but if it can help even a few people make it work, it's a good thing!
    The second announcement, which won't be fully launched until this fall, at the earliest, and the one with many more unknowns, is the CMHC "down payment assistance" option. IF you qualify, CMHC will now offer an additional 5% (on preexisting homes) or 10% (on new builds) as an interest free loan to add to your down payment. Again, this is aimed at keeping your monthly payments a little lower, and help with cash flow. You do still have to qualify for a mortgage on your own first (which means having the minimum 5% down yourself), and there are other rules: Household income can not exceed $120,000 a year, and the purchase price will be capped, at either 4 times your income, or a max of around a half million. Again, this sounds like a positive thing. And it COULD be. BUT this isn't free money! The loan will need to be repaid, upon the sale of the home. And some of the unknowns are whether or not they will also "take" some of the equity you've made over and above the original loan. Will you be "allowed" to refinance your home at any point to use the equity? What if, due to unforeseen circumstances, you take a loss on the sale? These are only a few of the many questions that still need to be answered on this program.
   Both of these changes have the potential to help some people. I personally don't feel it will have as big an impact as the government claims it will, and each option also comes with it's own strings and challenges, and won't be right for everyone. Both are certainly worth talking about when the time comes to do your mortgage, and I will be happy to make them a part of my conversation with you, but I don't recommend getting overly excited about them and just diving in without doing the due diligence first, and that's what I'm here to help you with!
     And the last thing I'll touch on in this already long winded post, is the question of whether or not you should consider waiting until the fall to see what this all might mean? My short answer is "No". If you're not going to be ready until then anyway, that's different. But if you were thinking of getting started now, and are in a position to do so, I don't believe this will be worth waiting for. Especially if you're renting, it's an extra several months of rent payments for a "what if". But if your'e still not sure what you should do, let's have the conversation, because there will never be a "one size fits all" answer, we'll need to look at your numbers, and your individual situation, and we'll make sure we do what's right for you! So, as always, I'm here to answer all your mortgage related questions! Thanks for taking the time to read this, I hope you found it informative and helpful!

Cornel and Hannah

Cornel and Hannah recently closed the deal on their first home. All things considered, we really didn't spend all that much time shopping to find the right one. And it really is the right one! It's a lovely home, in the perfect neighbourhood for them!
  But that doesn't mean their story is a short one. Cornel and Hannah first approached me almost a year ago. They were about to get married, and were hoping to start their new life together in their own home. After we sat down and looked at the numbers, and what they were hoping to get, unfortunately the timing just wasn't going to work out. They made the decision to rent for a couple of years or so, get their life moving, and go from there.
   Then, much to my surprise, almost exactly a year later they called me again and said they really didn't want to be renters anymore, could we meet again and see how things look now? Of course I said yes, I do love working with first time buyers!
   After our (second) initial chat, I got them set up with an excellent mortgage broker, and they found out the picture looked pretty good! They took another month or so to get a few financial things in place, while also watching the market a bit. Very soon, after some excellent work and planning on their part, we hit the streets in earnest to find that home, and get them out of their apartment before they needed to sign a new lease.
   After some interesting experiences with showings (their very first showing ever was in a tenant occupied home, that we expected would be empty, only to find a very grumpy tenant still in the house!!), and a few duds, we found what we thought could be the right one. It was even an easy walk to the local Dairy Queen! A big selling feature! It had been on their list for a bit, and had even gotten past an offer date (no competition!), so we checked it out. It did need a few minor fixes, but nothing a handy guy like Cornel couldn't handle.
   After two looks, and some debate, we pulled the trigger. A bit of negotiation later, and we had an accepted offer! But the story doesn't actually end here. Now we needed to get the financing fully approved. Things were looking great, but then we hit a minor bump. (Through no fault of anyone, just one of those weird things that can happen.) Fortunately Cornel and Hannah made the choice to work with a group of excellent professionals every step of the way, and we got it done.
   I couldn't be happier for the two of them. They can now move forward with the plans they had originally thought would need to be put on hold for a few years. But through some very smart planning on their part, they were able to make it happen. It was real joy for me to be a part of it.
  It was a pleasure working with Cornel and Hannah, they were the best kind of clients a Realtor could ask for, and I'm very sure they will enjoy their home for many years to come! Congrats you guys!

 

It's All About the Image

Let me start off by saying I would LOVE some feedback on this post.
   I've recently been reading a fascinating book called The Millionaire Next Door. At risk of oversimplifying it, the basic premise is that there is a difference between actually BEING wealthy, and just LOOKING rich.
  It speaks a lot about how society today is geared toward looking rich to the rest of the world, even if it's at the expense of actual, long term wealth planning. Buy the big car and the big house now, even if you don't have any retirement savings, versus living well below your means, but having a much higher overall net-worth. It even lays out ways and plans that you can become a millionaire, even if you make a relatively low income.
   While I've the whole book to be very enlightening and thought provoking, one item struck me personally, as a professional for whom my public image matters. They talked about how certain jobs an industries lend themselves to the high-consumption style of living due to the fact that there seems to be this societal idea that unless they LOOK rich, these people must not be good at their jobs. As an example, they talked a lot about lawyers. How they often are expected to drive the high end cars, and wear expensive, tailored suits, and if they don't, they must not be good lawyers.
   It struck me that the same can happen in real estate. And this is where I'd love to hear your thoughts on the topic. If you called two Realtors to interview, and one showed up in a fancy, tailored suit, and driving a brand new, top of the line Mercedes, and the other showed up wearing nice, professional (but off the rack!) dress clothes, and driving a few years old say Chevy Impala, which one would you be more likely to hire, BEFORE you talk to them?
   Does the one in the fancy clothes and car tell you that they are obviously very good at what they do, and so you NEED to hire them? Or are you maybe put off, or even intimidated, by that, and think maybe "they don't need me, they'll just be looking down on me".
   Or does the one looking a little more "middle class" tell you that they maybe haven't "made it" yet, and aren't ready to do what you need, or do you feel that maybe "this is a real person, like me, that can relate to me and my needs"?
  Now, I imagine people's responses to this may well be different, based on where they are on the "income scale" and stage of life. But I want to hear from everyone and anyone, no judgement, just dialogue and discussion! (And even value tips for me to help hone my image!)
   Thanks in advance everyone! And, as ever, if you, or anyone you know, has real estate needs, please feel free to call or email any time! 204-990-3457, lukevberg@gmail.com

January 2017 Market Stats

OFF TO A HEAD START FOR CONDO SALES IN 2017

-                      -           -
January MLS® Sales Drop 2%

WINNIPEG  - Condominium sales showed a marked jump in activity compared to January 2016 with a 36% increase. They are also up 17% over the 10-year average for January condominium sales. Overall, MLS® sales were slightly off last January’s total – ten sales to be exact. And similarly since residential-detached on WinnipegREALTORS®’ MLS® is by far the most dominant property type, there were sales of 400 compared to 409 in January 2016.

New MLS® listings coming on the market in January were down slightly too with residential-detached much the same and condominiums seeing a 5% increase over January 2016. It can be said a pattern is emerging where new condominium listings have steadily increased in January since 2012 and part of the explanation for this development is having more new condominium projects available on MLS®.

As a result these newly built condos are increasing their market share in terms of monthly sales. This January 29% of condos sold were new units where in January 2016 their percentage market share was 17%. Even with stronger condo sales in January the over 600 listings going into February are still elevated when you compare them to previous years. The only exception is last year where January condo listings were up 4% over this January.

It should also be noted the impressive showing of condo sales in January was borne out in the fact close to 20% sold for above list price in comparison to only 4% in January 2016.

“While one month does not make a year, it can give you pause to reflect on what may be around the corner,” said Blair Sonnichsen, president of WinnipegREALTORS®. 

He added, “One thing to monitor will be whether the more stringent qualifying mortgage rules and even the City of Winnipeg impact fees coming in to effect on May 1, 2017, will affect the condominium sales activity.”

In summary, January MLS® unit sales of 561 were down less than 2% from the same month last year while dollar volume of $153 million was up nearly 3% compared to January 2016. The 1,502 new listings entered on the MLS® market in January decreased 1% and it left a little over 3,000 listings available for sale going into February. This active listing inventory is down 9% from 2015 and 2016 levels of just over 3,400.

Based on fewer MLS® sales in the first quarter of the year, the projected time of absorbing all of the existing inventory if there were no new listings coming on the market is five and one-half months.  This compares favourably to last year at this time as it would have taken six months.

“One of the positive take-aways from January is the pick-up in condominium sales since the inventory remains elevated compared to its long term average.” said Peter Squire, market analyst of WinnipegREALTORS®. “It has also come to our attention that new condominium construction supply is coming down so builders are making adjustments to account for overbuilding in the condo market.”

The most active price range in MLS® residential-detached sales in January was the $250,000 to $299,999 price range at 21% of total sales. Tied for second busiest at 15% were the two lower price ranges of $200,000 to $249,999 and $150,000 to $199,999. The average days on market to sell a residential-detached home was 45 days, one day slower than January 2016.

The most active price range in MLS® condominium sales was from $150,000 to $199,999 at 29%. The next most active price range was from $100,000 to $149,999 at 15%. The average days on market to sell a condo was 48 days, 14 days or 2 weeks quicker than January, 2016

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

Established in 1903, WinnipegREALTORS® is a professional association representing just 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.

For further information, contact Peter Squire at (204) 786-8854.

Another Happy Buyer!

    I love working with first time home buyers. Don't get me wrong here, I love all types of clients. Buyers, sellers, people doing both at the same time. But first time buyers hold a special place for me.
    This was proven to me again with Jenna Lutz. When we first met to get things started, I think she walked away a little overwhelmed by everything presented to her. But we dove in, and as we worked, she learned. And in no time at all, she was used to the process, and we were rolling along. We viewed a number of homes that seemed, at first, to fit, but just weren't right. While Jenna was a little disappointed, we used this experience to learn a few things, made some adjustments, and dove right back in.
   Soon after making the changes, we found one she really liked. But there was an offer date, so we expected some competition. By the time offers were presented, there were more than just a few. Needless to say, we lost by a fair bit. But Jenna did the right thing, and didn't get caught up in it, went with her offer, and stuck with it. Once again, some disappointment, but Jenna handled it very well, and got right back out there.
   After a pretty quiet stretch during the Christmas holidays, I came across a listing that was just a little bit above our target budget, but thought there might be some room to negotiate, so I sent it over to Jenna. She decided it was worth a look, knowing the risks of looking over budget. Turns out this one was as close to perfect as we could get! It was even better than the one we lost before. We immediately put an offer on paper. Unfortunately, before we had a chance to have our offer presented, someone else jumped on it as well. Once again, competition. And once again, we lost. This time it hurt even more. We were really hopeful. But, again, Jenna handled it like a pro. Out we went again! That same week, we found another one that was close. Not as good, of course, but decent. Jenna decided to take some time to consider it before jumping on it. Turns out that was a VERY good decision!! Remember that perfect house? Well, the deal that beat us started falling apart. I got the call from the other agent on a Saturday afternoon. I jumped on the phone with Jenna immediately. Obviously she was excited! I went straight to her place, we re-wrote the same offer as previously, and away we went!! Needless to say, Jenna is thrilled, and so am I!
     So, why do I love first timers like Jenna? Because there are few feelings quite like helping someone find their first home, and seeing that look of sheer joy mixed with just a little bit of shock and fear.
  So, thank you, Jenna, for allowing me the privilege, and honour of helping with this next stage of your life, I'm sure you'll be thrilled with your home for many years!

Why REALTORs Push Pre-Approvals

If you've ever called a REALTOR before, you've likely been asked some version of this question: "Have you taken the time to get pre-approved for a mortgage?"
   I know I ask any new potential client this question. People often get at least a little defensive when this comes up, as if we are invading their privacy. I've seen responses that range from "Oh no, not yet, but we're just getting started, so we want to see what's out there, and we'll figure that out when we find the right home" or "No, but we've run the numbers ourselves, so we know what we can afford!" to "That's none of your business!" Well, I'm afraid it's very much our business, and if you disagree, I'm afraid you'll have a hard time finding a home!
   As far as the other answers, given one of these, most REALTOR's will push back on this, and strongly recommend that you get yourself pre-approved BEFORE you get started. Which isn't to say that we won't work with you, it just means that we need you to take the steps in the right order!
  Again, it's not that we don't want to work with you. In fact, we can often put you in touch with the right people to get you to that next step. The reasons we push to get the pre-approval done are many-fold, but let me explain two of the biggest.
  1. Are you sure you know everything that goes into a mortgage calculation? What if we started running around, looking at $300,000 homes for weeks, and then you get that pre-approval, and for some reason, you can't afford as much as you thought you could. If you've already seen $300,000 homes, you'll never be happy with a $250,000 one. It's important that you know (and stick to!) your budget right from the outset, so you're not disappointed. Never mind the time you've wasted!
  2. Even if you are "just getting started", or you "aren't that serious yet", what happens if we were to go look at a few homes, and you happen to find the one that is just PERFECT for you, but now you have to go running around getting your mortgage lined up, and someone else sneaks in and puts down an offer before you're ready? That would suck. And we don't want to see our clients in either of these positions.
  So, the next time a REALTOR asks you if you're pre-approved, don't be upset, or defensive. We aren't trying to be rude, or invasive, and it's not (just) about not wanting to waste our own time. It's also very much about not wanting you to waste yours, or seeing you in an awkward, or  painful situation!
   And remember, if the answer is "no", that doesn't mean we'll hang up on you! In fact, it's just another way we can provide our clients with a deeper level of care, by setting them up with the right professional to get that taken care of as well!
    So, even you're "just thinking about it", please do feel free to call me, and let me help you, with everything you'll need!

303A - 693 St. Anne's Rd

Come check out this wonderful condo now on the market! 303A - 693 St. Anne's Road is an absolutely great location. Starbucks right across the street, close to shopping, St. Vital Mall, and the perimeter, as well as all the other amenities the St. Vital area offers.

  It's a secure, professionally managed building, with a caretaker. It's very well maintained, with newer windows, and it has an elevator, so no stairs for all those groceries!

   the unit itself is a great two bedroom, upper floor unit. The kitchen has ample counter and cupboard space, with all the appliances included. The living room is spacious and inviting, featuring a gas fireplace. Next, you'll love the enclosed balcony with views on three sides. A great place to enjoy your morning coffee!

  The two bedrooms are both an excellent size, with large closets, and warm, wall to wall carpet. The bathroom is large and fully updated. And then there's the in-suite laundry, so no wandering the halls with your basket of clothes! All of this for $174,900

   So whether you're looking to get into the market for the first time, downsizing to get out of the maintenance of a home, or anything in between, this unit is worth your time. Call me at 204-990-3467, or email lukevberg@gmail.com to arrange your private viewing.

July Stats

July Sales Down 3%; Dollar Volume Off 2%

WINNIPEG  -  July sales finished slightly above the 10-year average of 1,330 MLS® sales for this summer month. However they fell short of last year’s near 1,400 sales and the record year of 2014 when July sales reached close to 1,500. Despite the year’s July numbers, year-to-date MLS® sales activity is ahead of any previous year with 5 months to go.

Both new listings coming on the market in July and the inventory at the end of the month were down 8% from 2015. Yet they would be considered elevated especially in comparison to the 10-year average. For example, the 5,291® MLS® properties presently listed on the market for August are up 28% over the 10-year average.

“WinnipegREALTORS® experienced its strongest sales result ever for June and the first six months, so to start off in a more restrained fashion in July is no cause for concern,” said Stewart Elston, president of WinnipegREALTORS®.  “Summer months are never as busy as the spring which is not surprising given Manitobans’ penchant to take advantage of our glorious weather and all of the seasonal activities that come with it.”

MLS® sales of 1,350 were down 3% from July 2015 while dollar volume fell short by 2% in comparison to the same month last year. But year-to-date MLS® sales are up 7% and dollar volume has increased 9% over the same seven-month period in 2015.

Given the run-away dominance of residential-detached sales at 74% of total MLS® sales and condominiums contributing over 12% of sales, other property types comprise far less market share and consequently are all in the low single digits. Having said that, it should not detract from how well other property types are doing in comparison to 2015.

With the exception of rural and duplex classified property types, which are only keeping pace with last year, most other MLS® property types are experiencing double-digit increases.  Vacant land with building is up 155%, town houses - 93%, mobile homes - 25%, commercial - 24%, vacant land - 18%, and resort property - 12%.

“As we always caution buyers to look beyond the headlines and dig deeper when it comes to their specific interest in the local real estate market, this applies to all property types,” said Elston. “2016 is showing real strength and growth in the lower profile property types so it shows buyers are not only calling their REALTOR® about homes or condos.”

The most active price range for residential-detached sales in July 2016 was from $250,000 to $299,999 at 22% of total sales. 15% of the  sales activity was from $200,000 to $249,999 and close behind at 14% was the $300,000 to $349,999 price range.

The highest sales price was $1,275,000 while the lowest was only $15,000. The average number of days to sell a home was 30, 3 days faster than July 2015.

The most active price range for condominiums in July 2016 was from $150,000 to $199,999 at 34%. The second busiest price range was from $200,000 to $249,999 at 19%. Only 7% of condo sales in July went for over $350,000. The highest one sold for $899,000. The average days on market for condominium sales in July was 44, 3 days slower than July 2015.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

Established in 1903, WinnipegREALTORS® is a professional association representing over 1,900 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.

For further information, contact Peter Squire at (204) 786-8854.

Increasing Your Home’s Value On A Tight Budget.

Increasing Your Home’s Value On a Tight Budget

By Mary Sauer

If you’re planning to sell your home in the near future, you may have already considered what you’ll need to do to increase the value of your home. At Home Improvement Leads, we know that investing a large amount of money in remodeling your home before it even goes on the market isn’t always the most realistic, so here are some budget-friendly ways to increase your home’s value before you sell.

Start Outside

When you are selling your home, curb appeal is a big deal. A beautifully kept home exterior will not only attract more potential buyers with a positive first impression, it has also been found to increase the selling prices of homes. Begin with your landscaping, keeping things within budget by focusing on a lush and healthy lawn, eliminating weeds, and trimming any overgrown trees of plants. If you have a little money to spend, small improvements like planter boxes, fresh mulch, or even a bright new coat of paint to your front door can make all the difference in the creating a warm welcoming.

Replace Fixtures, Cabinet Pulls and Doorknobs

Since popular metal choices change frequently, the appearance of the fixtures, cabinet pulls, and doorknobs in your home can easily date your kitchen and bathroom. The good news is that updating these home accessories is fairly simple and inexpensive. You can quickly swap outdated hardware over the weekend with a small monetary investment, making this a budget-friendly home improvement that will increase your home’s style in a small but eye-catching way.

Apply a Fresh Coat of Paint

Do you want to transform your home in a week’s time? Buy a few gallons of neutral colored paint and give every wall in your home a facelift for a fresh and clean coat that will also increase brightness. This quick and budget friendly home improvement can make a big impact on your home’s value. Most real estate and home staging experts recommend using a neutral shade, because even though paint is an easy fix for the person buying your home, it’s often difficult for them to look past a color they dislike—and the wrong color could turn potential buyers away completely.

Focus on the Bathroom and Kitchen

Upgrades to the kitchen are believed the have the biggest impact on a home’s value and bathroom upgrades are a close second, so if you have a flexible budget, this is where you should focus. A kitchen or bathroom remodel can be a bit expensive, so work with the budget you have to make changes that will have the biggest impact. This could include replacing dated flooring, repainting cabinets, or upgrading an appliance that is well past its prime.

After years of struggle in the home market, we are finally experiencing a healthy and competitive seller’s market. As a homeowner who is considering selling your home, this is good news for you. Because of the improvements in the real estate market, small changes can have a big impact on your home’s value and make it even easier to sell your home.

Increasing Your Home’s Value On A Tight Budget.

Increasing Your Home’s Value On a Tight Budget

By Mary Sauer

If you’re planning to sell your home in the near future, you may have already considered what you’ll need to do to increase the value of your home. At Home Improvement Leads, we know that investing a large amount of money in remodeling your home before it even goes on the market isn’t always the most realistic, so here are some budget-friendly ways to increase your home’s value before you sell.

Start Outside

When you are selling your home, curb appeal is a big deal. A beautifully kept home exterior will not only attract more potential buyers with a positive first impression, it has also been found to increase the selling prices of homes. Begin with your landscaping, keeping things within budget by focusing on a lush and healthy lawn, eliminating weeds, and trimming any overgrown trees of plants. If you have a little money to spend, small improvements like planter boxes, fresh mulch, or even a bright new coat of paint to your front door can make all the difference in the creating a warm welcoming.

Replace Fixtures, Cabinet Pulls and Doorknobs

Since popular metal choices change frequently, the appearance of the fixtures, cabinet pulls, and doorknobs in your home can easily date your kitchen and bathroom. The good news is that updating these home accessories is fairly simple and inexpensive. You can quickly swap outdated hardware over the weekend with a small monetary investment, making this a budget-friendly home improvement that will increase your home’s style in a small but eye-catching way.

Apply a Fresh Coat of Paint

Do you want to transform your home in a week’s time? Buy a few gallons of neutral colored paint and give every wall in your home a facelift for a fresh and clean coat that will also increase brightness. This quick and budget friendly home improvement can make a big impact on your home’s value. Most real estate and home staging experts recommend using a neutral shade, because even though paint is an easy fix for the person buying your home, it’s often difficult for them to look past a color they dislike—and the wrong color could turn potential buyers away completely.

Focus on the Bathroom and Kitchen

Upgrades to the kitchen are believed the have the biggest impact on a home’s value and bathroom upgrades are a close second, so if you have a flexible budget, this is where you should focus. A kitchen or bathroom remodel can be a bit expensive, so work with the budget you have to make changes that will have the biggest impact. This could include replacing dated flooring, repainting cabinets, or upgrading an appliance that is well past its prime.

After years of struggle in the home market, we are finally experiencing a healthy and competitive seller’s market. As a homeowner who is considering selling your home, this is good news for you. Because of the improvements in the real estate market, small changes can have a big impact on your home’s value and make it even easier to sell your home.

June Stats

 PRESS RELEASE 

July 11, 2016 

For Immediate Release 

M LS® SALES REACH NEW JUNE RECORD HIGH OF 1,638 

- - - 

MLS® Sales Up 9%; MLS® Dollar Volume Rises 13% 

WINNIPEG - Back to back months of the second and third best months ever on record with 1,638 transactions in June and 1,629 in May makes 2016 the most active year for the first six months and second quarter. Only May 2007 is higher than this June at 1,652 sales. The next busiest second quarter on record was in 2008 when again there were back to back outstanding monthly results with May and June each recording 1,564 sales. 

Sales were up 9% in June over the same month last year and the identical percentage increase for the first six months in comparison to the same period in 2015. It is the first time WinnipegREALTORS® has surpassed 7,000 MLS® sales in six months. 

“There is no question the perfect storm I spoke of earlier in the year is materializing,” said Stewart Elston, president of WinnipegREALTORS®. “The Winnipeg real estate market is supported by strong underlying fundamentals. Helping us reach new heights is the excellent supply of MLS® listings with much to choose from throughout the market region. The difference between this year and last year is stronger buyer sentiment and therefore higher conversions of listings to sales.” 

Single family homes led the way to this impressive June result with 1,252 sales or 76% of total MLS® sales. Condominiums did not perform as well in comparison to the previous two years but still very respectable at 187 sales or over 11% of total MLS® sales. 

Eager buyers vying for coveted single family home listings translated to more above list price offers this June in comparison to last month and June 2015. Over one in four sold for above list price while last June 17% sold for above list price. As for condominiums only 5% sold for above list price in June. However 22% of condos achieved list price. 

MLS® dollar volume of $472.3 million is up 13% over June 2015. It is the highest monthly dollar volume on record. Year-to-date dollar volume of close to $2 billion has risen 11% over the first half of 2015. 

“2016 is exceeding our initial forecast and expectations for MLS® sales this year,” said Elston. “Recent news of a record-breaking 12-month increase of 19,453 people to our province and 63,119 individuals in the last four years is certainly a contributing factor. Along with population growth and a younger demographic comes an increased number of births which often triggers demand for housing. It is worth noting our own membership numbers have been increasing in the last few years and now sit at over 1,900 members.”

Price growth this year is more in line with the forecast for single family homes. A healthy supply of listings for the most part is keeping price increases in check. The chart below illustrates subdued price appreciation for all quadrants of Winnipeg and a similar pattern in the outlying rural municipalities when comparing the first half of 2016 to the same period in 2015. 

Condo prices were not expected to see any discernible difference in 2016 if not facing some downward pressure owing to the abundance of MLS® listings and new condo supply on the market. They have decreased very modestly at this stage. 

The average year-to-date price for single family homes and condominiums is $306,311 and $232,507 respectively. 

Of course depending on the property type you have, its location, the number of competing similar property types with their own strengths and weaknesses, you need to be talking to an expert – a REALTOR® - who can advise you on what you need to do to maximize your chances of achieving the best price possible. For buyers a REALTOR® will be indispensable in imparting critical market intelligence on what prices they can expect to see in the current market for the property type they are interested in purchasing. 

Single family homes in particular are enjoying an exceptionally strong year, especially the last two months. Within some Winnipeg neighbourhoods there are not enough listings to meet existing demand. Fort Garry, Norwood, Windsor Park, Whyte Ridge, Crescentwood, Linden Woods, East Kildonan and Crestview are areas where we are seeing more sales in a month than the number of listings remaining on the market at the beginning of the next month. 

Condominiums on the other hand are not enjoying near the same extent of sales to active listings conversions. This in part explains why there is less above list price sales than single family homes. 

The most active price range in June for residential-detached sales was $250,000-$299,999 (22% of sales), followed by the $300,000-$349,999range (17%) and the $200,000-$249,999 (15%). 

Average days on market for residential-detached sales was 26 days, 3 days quicker than June 2015. The highest priced residential-detached sale was $1,450,000 and the least expensive sale was $35,000.

The most active price range for condominiums was $200,000-$249,999 (26% of sales), followed by the $150,000-$199,999 range (23%) and the $250,000-$299,999 range (17%). Average days on market for condo sales was 43 days, a turnaround that is 6 days quicker than June 2015. The highest priced condo sold for $645,000 while the lowest was $66,000. 

Established in 1903, WinnipegREALTORS® is a professional association representing over 1,900 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. 

For further information, contact Peter Squire at (204) 786-8854.

May Sales Stats

MAY MLS® SALES ECLIPSE 1,600

-           -           -

Highest Ever Monthly MLS® Dollar Volume Total of $460 Million

WINNIPEG - May 2016 showed stellar results with MLS® sales surpassing 1,600 for only the third time in WinnipegREALTORS® 113-year history.MLS® dollar volume followed suit with a new all-time monthly record of $460 million.

2016 is picking up where 2015 left off with a full recovery in condominium sales from early last year and residential-detached sales continuing to shine and show gains over the previous year.  Beyond the two main property types, sales increases are also occurring in most others such as duplexes, vacant land, commercial, mobile homes, single-attached and town houses.

“Buyers are taking notice and advantage of one of the most affordable markets in the country,” said Stewart Elston, president of WinnipegREALTORS®.  “They also have the benefit of choosing from a wide array and abundance of good listings.”

Only May 2007 has higher monthly sales than the 1,629 sales transacted in May 2016.  Both May 2016 sales and dollar volume were up 12% over May 2015. New listings were robust too, just shy of 3,000 coming on to the market in May. Despite all these new listings, the inventory of 5,291 listings at the end of May is down 8% from last year.

Year-to-date MLS® sales of 5,446 are up 9% from the same period last year and ahead of previous years, albeit by a very small margin in comparison to 2012. Year-to-date dollar volume of $1.5 billion is up 10% from the first 5 months in 2015. Listings entered on the MLS® in 2016 are virtually the same as last year’s at just over 11,000.

“Given the second quarter, our busiest quarter of the year, is performing so well, it does set us up to usher in another steady and impressive year of MLS® sales activity,” said Elston. “We may even look at adjusting our annual forecast projection at the end of June based on year-to-date numbers.”

Sometimes it is interesting to note where your gains are in sales over the previous year when you look at the price range breakdown. May 2016 saw quite a significant increase in residential-detached sales at the lower end of the spectrum from $125,000 to $149,999 but also experienced a sizable jump in sales activity from $475,000 to $599,999.   As for condominiums, an upward shift is occurring with the $200,000 to $249,999 price range showing a 33% increase in unit sales over May 2015.

You only have to go back to May 2013 when the $150,000 to $199,999 price range for condominiums was so much more dominant than other price ranges at 40% of all sales. May 2016 shows the $200,000 to $249,999 price range coming within a few sales of equaling this price range.

The most active price range for residential-detached sales in May 2016 was from $250,000 to $299,999 at 21% of total sales. Deadlocked in second place were the $200,000 to $249,999 and the $300,000 to $349,999 price ranges at 15% each. The highest sale price was $1,650,000 with the lowest at $37,000.  The average number of days to sell a home in May was 23, 2 days quicker than May 2015.

The most active price range for condominiums in May 2016 was $150,000 to $199,999 (at 24%). Close behind was the $200,000 to $249,999 price range at 22% of all condo sales. The highest condominium sale price was $460,950. The lowest sale price was $84,500. The average days on market for condo sales in May was 47, 6 days slower than May 2015.

Established in 1903, WinnipegREALTORS® is a professional association representing just under 1,900 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.

For further information, contact Peter Squire at (204) 786-8854.

Price vs. Value: Are They Different?

When it comes time to buy your home, what's one of the first things you need to do? You need to find out how much you can spend. So now you know what PRICE you can afford. But what about determining the VALUE you get for that price? Are they the same thing?

They are, most certainly, connected; but they are NOT the same thing. Price is objective. It's a number. In the case of real estate, it's a number realized after the sale is complete. It is the exact dollar amount that was paid for the specific property. In theory, it should be (roughly) the cost of the materials involved in the building of the home, plus any other buildings, plus the cost of the land. But, in real estate, that's not all that goes into it. Due to factors such as location, or family needs, among others, different people are willing to pay (potentially) vastly different amounts for the same home. That's where VALUE comes in. Value is very subjective. Different items have different value to different buyers.

As an example, let's pretend you're looking to buy a home, and you really want to be within walking distance to your workplace. You find two homes, identical in all aspects, except that one is a 5 minute walk to work, the other a 35 minute walk. You likely wouldn't be willing to pay the same for the 35 minute walk as you would for the 5 minute walk. Because the closer one is of more VALUE to you.

The difference between price and value can also effect you when you sell real estate. It's time to do some renovations to make your home more "saleable". 

But what do you do, and how much do you spend? It becomes a question of balance. Of working the averages. What appeals to MOST buyers, to the widest market. But what about specialty items, like pools? Don't they add value to a property? In theory, yes. But if you spend $50,000 on a pool, it likely doesn't add that much in VALUE, as people looking for a home with a pool may not like the shape you chose, or the size, or the features. Not to mention that you are limiting your buying market, as not everyone looking in your area may want a pool at all. Which isn't to say don't build a pool. If you want one, go for it. But don't do it solely for resale.
   So, when it comes to either buying, or selling, your home, enlist the help of a professional that will sit down with you, look at not only your budget, but also at which items and factors are of the most value to you, and then help you find the property that fits. Or in the case of selling, what makes the most sense, to appeal to the most buyers, when making changes. Because it's not just about cost.

April Stats

 

APRIL SALES BETTER THAN THE REST

-           -           -

April MLS® Sales Up 8%

WINNIPEG - April MLS® sales showed continued strength and momentum from an excellent first quarter of MLS® sales and dollar volume activity.

April sales surpassed both last April’s total and the April 10-year average by 8%. The 1,373 sales transacted through WinnipegREALTORS®’ MLS® are the highest sales total on record for the month of April.

Year-to-date sales are also up 8% at over 3,800. This current pace is only outflanked by 2012 while year-to-date dollar volume of over $1 billion has risen nearly 10% over the same period in 2015.

Active listing inventory has come off its peak level of over 5,000 in 2015. It now sits at 4,708 in 2016. New listings coming on the market in April were down 10% from the same month last year. The absorption rate for all MLS® listings going into May if you assume there are no new listings entered on MLS® is down to three and one-half months.

“While there were no major spring storms to deal with, I believe our MLS® market had the perfect storm when it came to what transpired in April,” said WinnipegREALTORS® president Stewart Elston.   “We enjoyed a healthy influx of buyers taking advantage of a very competitive market with such favourable interest rates. At the same time we witnessed a reduction in the number of listings coming on the market. This resulted in more balanced market conditions in which sellers are feeling more hopeful with supply starting to level off.”

Adding fuel to Elston’s delight with an excellent start to the second quarter was Winnipeg receiving top billing in the Globe and Mail’s Report on Business recently. It talks about Winnipeg “powering the engine of one of Canada’s most stable, resilient provincial economies.” The report also indicates Manitoba “is projected to have the third-highest rate of economic growth this year – 2.2 per cent according to RBC Economics Research …and to enjoy the lowest unemployment rate in the country, 5.4 per cent, well below the Canadian norm of 7 per cent”. 

Some MLS® areas would have welcomed more listings, as sales were brisk, but from an overall market perspective supply needs to come back more in line with existing demand. Of course, not all areas, nor property types, share the same outcomes month to month, so you need to be talking to a REALTOR® about how your particular needs and preferences fit within the existing market.

Speaking of property types, the stand out in April and one which has been noted this year already is condominium. There has been a strong resurgence of condominium sales in comparison to an underachieving performance in early 2015. Condominium sales increased 34% over April 2015 and are up 21% year-to-date in comparison to the same period last year.

“The comeback in condominium sales activity this year is encouraging since there is a significant inventory of new and resale condominiums on the market presently,” said Elston. “Buyers are waking up to this fact and availing themselves to some attractive offerings.”

While we will look more closely at the various quadrants of Winnipeg and rural municipalities of the WinnipegREALTORS® market region after six months of residential-detached sales activity it is worth noting for the first time the southwest quadrant had an average residential-detached sales price of over $400,000. Two of their 194 sales were in excess of $1 million. It is indicative of good move up activity as the spring market starts to get in full gear.

The most active price range for residential-detached sales in April was from $250,000 to $299,999 at 21% of total sales. Closely matched in second place were the $300,000 to $349,999 and the $200,000 to $249,999 price ranges at 15 and 14% respectively. The highest sales price was $1,250,000 with the lowest being only $9,500.The average number of days to sell a home in April was 26 days, 2 days quicker than April 2015.

The most active price range for condominiums in April was $150,000 to $199,999 at 34%. The next busiest price range was from $200,000 to $249,999 at 20%. The highest condominium sales price was $770,000. The lowest sales price was $56,000. The average number of days to sell a condo was 41 days, 8 days ahead of the pace set in April 2015.

Established in 1903, WinnipegREALTORS® is a professional association representing over 1,885 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.

For further information, contact Peter Squire at (204) 786-8854.