The current housing market in Winnipeg

Real Estate, Selling

I have been asked to share a bit about the current housing market…  As most people know, the market is HOT when it comes to sales and sale prices. It seems like every home in a desirable area is getting multiple offers and selling for tens of thousands of dollars over asking.  

Why is that? Here are some of the reasons for the hot market and why it might be a good time to sell:

1. Lower than normal supply:

Possibly due to covid – we are still seeing a lower than average number of homes for sale in Winnipeg.  A friend of mine who works for a large builder in Winnipeg  said that a year ago their new home wait list was 6 months, and now it has ballooned to 16 months! Even with the price of lumber tripling and the price of new homes increasing!

2. Low interest rates:

With record low interest rates, people can afford to increase their purchase ceiling (for the time being) and builders and developers are able to borrow more money to build and develop, at a much lower borrowing cost – also helping to drive the frenzy

3. Properties are appraising out:

We are seeing the majority of homes (purchased WELL above asking) come back with appraisals that support the sale price of the home. This might be due to a combination of factors (like aggressive pricing practices), but also because comparables are usually within the last 6 months, so the latest sale price in your area essentially becomes the new benchmark for value.

What to make of all of this information, especially if you are a first time home-buyer? Check back next week for a new post on buying your first home in the current market!