The Winnipeg Realtors Association recently released their latest sales figures and it was good news once again.
Coming into 2011, the expectation was that the local market would be cooling considerably compared to previous years. The prevailing thinking was that this market has been hot for almost a decade and that this trend couldn't continue.
However, this year has proven to be just the opposite as volume and prices continue to rise.
Many people would question what the resale market has to do with the new home market. Some would even consider it the competition and think that more resales would hurt new-home sales. Nothing could be further from the truth.
The new-home and used-home markets work hand in hand for the benefit of both. A typical pattern in Manitoba is that owners need to be able to sell their current home to step up to a new home. Therefore, the greater the number of used-home sales, then the greater the opportunity to sell new homes.
The fact that resale homes are moving faster and frequently above list price gives the new-home buyer additional leverage when looking for that perfect new dream home. A flat market would mean that people are staying where they are and are not interested in making the move to a new residence.
Resale activity indicates there is mobility in the market and that all options are open for consideration.
As is repeatedly noted in the news, apartment vacancy rates in Winnipeg are under one per cent and among the lowest in Canada. With mortgage rates and terms as low as they are, buying is an extremely attractive option.
New homes tend to be in new neighbourhoods in newer subdivisions. When one combines the equity of selling their current home (two-thirds the price of the average new home) with the current mortgage rates, moving up to a new home has never been easier.
The Winnipeg Realtors Association and the Manitoba Home Builders' Association work very closely in monitoring the market and promoting housing affordability to consumers.
Whether it be legislation, professional practices, research or the promotion of product in a fair manner, both organizations work to ensure that the Manitoba home owner is the winner. The pride of home ownership is a key to both.
Mike Moore is president of the Manitoba Home Builders' Association.
