Winnipeg house prices continue to rise
- Improving economic conditions and low interest rates create active market in 2010 -
Winnipeg's real estate market continues to prosper in 2010, according to the latest Royal LePage House Price Survey. The survey released today, showed strong price appreciation across all housing types in Winnipeg for both the first quarter of 2010 and year-over-year.
City-wide, detached bungalows posted the largest year-over-year price increases climbing 11.9 per cent to $259,313. Prices for standard condominiums rose 11.2 per cent to $162,157, while standard two-storey homes were up 9.6 per cent year-over-year to $277,375.
"Our market continues to stay competitive," said John Froese, broker, Royal LePage Prime Real Estate. "Prices are continuing to rise as first time home buyers take advantage of low interest rates in a very economically viable market."
Housing types, such as detached bungalows, standard two-storey homes and standard condominiums all saw year-over-year price increases from as small as a few per cent to almost 25 per cent in some Winnipeg areas. Detached bungalows increased from 4.2 per cent in Charleswood, rising from $240,000 to $250,000, to increases as large as 18.8 per cent in River Heights, rising from $229,000 to $272,000.
Standard two-storey homes increased from 4.3 per cent in River Heights, rising from $287,750 to $300,000, to 24.7 per cent in Westwood, rising from $223,000 to $278,000. While standard condominiums saw increases from 1.7 per cent, rising from $141,000 to $143,400 in Westwood, to 20.4 per cent in South St. Vital, rising from $140,000 to $168,600.
Compared to last quarter, house prices also increased in almost all areas of the Winnipeg market as well. Standard two-storey homes were the only exception, with slight decreases occurring in Westwood and in the North East, decreasing from $280,000 to $278,000 and $280,000 to 254,000 respectively. Both locations are entry points into Winnipeg and are more conducive to condominiums rather than single family homes.
"Inventory levels are down 6.3 per cent year-over-year," said Froese. "We had such a mild winter in Winnipeg that potential buyers continued to buy throughout the year. The months of October, November and December all saw double-digit house price increases with multiple offers becoming much more common in the market."
Froese predicts that home prices in Winnipeg will continue to rise through the second quarter of 2010 for most housing types, as long as interest rates remain reasonable and first time home buyers continue to remain active.
In comparison, the national average price of a detached bungalow in Canada rose 11 per cent to $329,209 in the first quarter year-over-year, while standard two-storey homes rose 10.3 per cent to $365,141 and standard condominiums increased 10.9 per cent to $228,963.
"National averages from our first quarter report are not particularly useful in painting a picture of the country's neighbourhood real estate stories. House sale data from the past two year period shows tremendous variances in terms of how different cities reacted to the recession," said Phil Soper, president and chief executive, Royal LePage Real Estate Services. "In Vancouver and Toronto, for instance, the dramatic unit sales fluctuations exhibit a significant degree of market irrationality: inordinately fearful when faced with poorer markets; and overly enthusiastic when the tables turned. Montreal is an example of a city where the market has been much more stable and homeowners there seem quite happy with the relatively slow pace of change."
In addition to strong price appreciation in the first quarter of 2010, the volume of sales in Canada also increased year-over-year as pent-up demand from constrained supply of homes for sale in 2009, coupled with unseasonably warm weather, prompted a spike in home sales in the country's largest housing markets from January through March.
About the Royal LePage House Price Survey
The Royal LePage House Price Survey is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast. This release references an abbreviated version of the survey, which highlights house price trends for the three most common types of housing in Canada in 80 communities across the country. A complete database of past and present surveys is available on the Royal LePage Web site at
www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the first quarter. A printable version of the first quarter 2010 survey will be available online on May 7th, 2010.
Housing values in the Royal LePage House Price Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts. Historical data is available for some areas back to the early 1970s.
About Royal LePage
Royal LePage is Canada's leading provider of franchise services to residential real estate brokerages, with a network of nearly 14,000 real estate professionals in over 600 locations across Canada. Royal LePage is the only Canadian real estate company to have its own charitable foundation; the Shelter Foundation which is dedicated exclusively to funding women's shelters and violence prevention and education programs. Royal LePage is managed by Brookfield Real Estate Services, and is part of a brand family that includes Royal LePage, Real Living, Johnston and Daniel, and La Capitale Real Estate Network. An affiliated company, Brookfield Real Estate Services Fund, is a TSX listed income trust, trading under the symbol "BRE.UN."
For more information visit
www.royallepage.ca.
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