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Winnipeg Real Estate Shows Healthy Growth in the 3rd Quarter

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WINNIPEG, October 12, 2017 –

The price of a home in Winnipeg increased a healthy 5.5% year-over-year in the third quarter of 2017, rising to an average price of $305,413, according to the Royal LePage House Price Survey released today. When broken out by housing type, the median price of a standard two-storey home and condominium both rose 6.1% year-over-year, to $333,145 and $249,856 respectively, while the median price of a bungalow saw a healthy increase of 4.7% year-over-year to $287,487.

“Increased demand from a growing population and a healthy economy has resulted in low inventory and price appreciation in all surveyed housing types,” said Michael Froese, managing partner, Royal LePage Prime Realty. “Buyers are coming home to Winnipeg. Those who had left for employment in Calgary continue to return and we are seeing an increasing number of buyers from Toronto who don’t want to carry a large mortgage. Winnipeg is an affordable place to live and good place to have a career.” Froese believes that price gains will be resilient throughout the remainder of the year although he is expecting sales to dampen with ongoing compounding external factors such as a potential enhanced mortgage stress test and proposed federal tax changes that affect small businesses.

“In addition to regulation directly aimed at the real estate market, buyers have had to budget two interest rate increases and the looming possibility of a further enhanced stress test,” continued Froese. “Also, uncertainty caused by the proposed federal tax changes will continue to affect sales as small business owners and their staff wait to see the outcome.”

Nationally, the price of a home in Canada increased 13.3% year-over-year to $628,411 in the third quarter. When broken out by housing type, the median price of a standard two-storey home rose 13.9% year-over year to $748,049, and the median price of a bungalow grew 9.5% to $525,781. During the same period, the median price of a condominium rose 15.2% to $413,670.

Meanwhile, on a quarter-over-quarter basis, home prices in Canada’s five most populated housing markets are rising at a similar, healthy pace – the first time this has occurred in six years.

“For now, the Toronto and Vancouver housing markets have returned to earth,” said Phil Soper, President and CEO, Royal LePage. “After a period of unsustainable price inflation and sharp market corrections, we are seeing low single digit appreciation in each.

Calgary has shaken off the oil-bust blues and Montreal appears to be at the beginning of a new era of economic prosperity.

Rounding out the ‘big five,’ the Ottawa market is behaving like it usually does – a picture of healthy market growth. “Uneven regional economic growth has plagued Canada for much of the past decade, a challenge most evident in the nation’s housing markets,” continued Soper. “For the first time since 2011, we are seeing real estate in all five of our largest cities appreciate at a manageable, healthy clip. Canadian housing is enjoying a Goldilocks moment – not too hot, and not too cold.

 

 

About the Royal LePage House Price Survey

The Royal LePage House Price Survey provides information on the three most common types of housing in Canada, in 53 of the nation’s largest real estate markets. Housing values in the House Price Survey are based on the Royal LePage National House Price Composite. Commentary on housing and forecast values are provided by Royal LePage residential real estate experts, based on their opinions and market knowledge.

 

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About The Author
Phil Mosher

Whether you are looking to buy/sell an existing home or a full customized build, I'd love to be of service! As a Realtor with Royal LePage Alliance as well as being "Winnipeg's New Home Expert", I take pride in drawing on twenty years of industry experience to assist families with the most important personal purchase decision of their lives. So, if you are in the market now or just wanting to see if we may be a fit in the future, feel free to contact me for a no obligation consultation. It would be my pleasure to go to work for you!

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