Winnipeg real estate is cooling down
More new listings are coming onto the market
Winnipeg’s real estate market is still strong but shows signs of cooling off just a little. Although the housing market is up since last year in just about all respects, we have seen a slight shift as of late, with more new listings coming onto the market. June 2022 saw 2867 new listings coming onto the market, up 25% from last year.
The average single-family home price is down from May 2022 to June 2022, with the average house price in May being $454 832, whilst the average house price in June was sitting at $426 541. Looking back to June last year, the average home price was $395 576, so housing prices, in general, are still significantly up year on year.
In terms of the selling price, we have seen more homes sold below the asking price in June (37%) as opposed to both the preceding months of April 2022 (25%) and May 2022 (28%).
However, there were still 45% of single-family homes selling above their asking price in June, which is a decrease from both May (64%) and April (67%), so there is still a good percentage of properties selling above their asking price.
What can we expect next?
With the significant number of new listings coming onto the market, we should slowly see an end to the “bidding war” which we have seen across so many real estate markets, where the demand for property is so great that multiple people are bidding for what little inventory there is on the market, significantly pushing up the prices of real estate.
With the number of new listings entering the market, buyers have more properties to choose from and subsequently more options and are less likely to be overpaying for properties. Accordingly, sellers need to be more realistic about the price they hope to receive for their property.
As with all red-hot markets, they cannot last forever, as the real estate market in Winnipeg is showing signs of slowing down and cooling off. Don’t be mistaken; this is still a sellers’ market, as prices remain near an all-time high, but the trend of buyers simply snapping up whatever they can at overpaid prices seems to be waning.
Traditionally, Winnipeg’s real estate market has been less volatile than other markets, which will likely remain as we see the property market in Winnipeg and the rest of Canada cooling off.
Economic outlook and real estate
A large part of what has contributed to the sky-rocketing real estate prices over the last few years has been the unique circumstances facing our world, with the onset of the COVID pandemic towards the end of 2019 and the beginning of 2020. We saw interest rates falling to very low rates and people
rushing to buy properties whilst they could lock in low interest rates. Additionally, countries issued stimulus checks to cope with the pandemic, creating a perfect situation to push housing prices up.
As the world adjusts to life post COVID, we have seen some significant shifts in the economy, which are still ongoing, making home buyers a little more tentative and considerate about getting into the housing market. The Bank of Canada has raised their interest rates, and this has caused buyers to consider carefully before taking a mortgage. In addition, inflation has been surging, with the inflation rate rising to 8.1% in June 2022, the highest inflation rate since 1983.
Inflation is diminishing Canadians’ purchasing power and eating away their disposable incomes. People are therefore more considerate about making a big, life-changing purchase such as buying a home, especially as inflation does not appear to be slowing down, at least for the time being.
Ensuring you get the best price when selling
With more inventory coming onto the market, more competition is emerging amongst sellers and ensuring that you get the best price for your property is likely to become more challenging. The notion that a property will sell itself without marketing or attention to its presentation is false. A property needs to be well presented and marketed just as much as any other goods or services. It is now estimated that 97% of people use online search to help them find their home. This means that if your home is listed online but not in an appealing way, you are potentially losing a large percentage of the home buyers.
Many home buyers will begin their hunt for the dream home online. If you fail to capture the interest of potential homebuyers, you could miss out on potential buyers, not only on potential buyers but even on getting the best possible price. Suppose you have more than one person interested in buying your property. In that case, you have a better chance of getting a higher price, as the sellers will compete amongst themselves for your property, each trying to outbid the other. By making your property as appealing as possible to potential buyers, you are positioning yourself to receive the best price possible.
Presenting your home in the best way
You must market your property well if you want the best price possible. One of the best ways to do this is by your online presentation of your property. Old phone pictures taken with outdated cameras won’t do the job, nor will amateur videos with poor lighting. You need to partner with a professional who understands how to sell a property. This is where Snaphouss comes in. We offer a bouquet of different services to take your property and make it stand out from the crowd.
From professionally enhanced photos to 3D virtual tours, beautiful twilight photos and more, we know how to make your property stand out. We offer various packages with different add-ons starting from $99. We currently service Canada and the United States and complete our projects in 24 hours or less.
Please get in touch with us, as we would love to bring your property to life and help you get the best possible selling price!
