Cold complainers like me aren't the only ones celebrating the arrival of spring. The real estate market is entering its busiest time of year and the market is picking up.
"We're seeing a lot of action in the market," says Darlene Clare, president of WinnipegREALTORS. "It is really amazing -- and it's been a very cold winter."
Now that it's finally warming up, buyers are anxious to get out and start looking for the perfect house. The combination of the milder temperatures and the extra hour or so of daylight at the end of the day has had a positive influence on home buying activity.
"It's just made a huge difference," says Clare. "When its - 46 in February, it's hard to get out there and look -- you have to be really motivated."
Yet, despite the cold weather, sales activity in the real estate market was strong in the winter months. In February, for example, there were lots of multiple offers on houses and properties on average sold for seven per cent above the list price.
As people get into the market now with the hopes of buying this spring in order to move in by summer, Clare says the challenge is getting more houses on the market. She says it is still a strong seller's market, with limited supply and many properties still receiving multiple offers. And that's disheartening for many potential homebuyers.
"There are buyers who have written eight or nine offers on different houses and are very discouraged," notes Clare. "For realtors, it's difficult to keep those buyers motivated."
Clare says she hopes more homes will come on the market this spring, which will balance out the tight demand-and-supply phenomenon and even out the market.
Realtor Greg Michie, of Sutton Group, says there is a definite need for more houses to come onto the market because there is not nearly enough supply to fill demand. He says he thinks the supply situation is even tighter than it was last year and there are even fewer listings for buyers to choose from.
While that's not good news for buyers, it has been a boon to sellers.
"My personal experience is that so many houses are selling for more than they were last year," says Michie, adding the infamous bidding wars are a continuing trend in this market.
Perhaps the newer trend is that bidding wars are becoming more common now in the higher-priced homes, where they were predominantly in the more affordable segments of the market.
"People are stepping up the ladder," Michie notes. " Bidding wars are more severe and are starting to appear at higher levels for those 'special' houses."
Michie is referring to the so-called "turn-key" houses, where buyers can essentially move right in and don't have to do much of anything. Despite the fact they may have to get into one of those bidding wars, homebuyers are often willing to shell out more money for the right house.
"When purchasers spend that extra money, they don't want question marks on what improvement costs will be," says Michie. "Houses that are turn-key are the ones that really go."
That demand for houses that are essentially done, combined with rising property values and continued low interest rates, has led many people to invest in their homes over the last several years.
"A lot of people have refinanced and upgraded their homes because the value is there," says Michael Dubienski, a realtor with RE/MAX professionals.
And that's been a positive for both buyers and sellers. While sellers are able to capture increased value for their homes as a result of the improvements they have made, buyers are getting a better deal, too.
"People are actually getting better houses," says Dubienski.
The strong values are also encouraging people to think about moving. The Baby Boomers are on the move, Dubienski says. He says many are looking at the market, finding out what their house is worth and then deciding now is the time to move into a condo. In most cases, he says they are simply trading houses -- selling their house and turning around and buying a condo for a similar amount.
"I've noticed a huge increase in the condo market," says Dubienski. "I think people are overwhelmed by the prices and are deciding it's time to sell."
Dubienski also offers a ray of hope for discouraged buyers. In recent weeks, three listings in the very popular River Heights area have sold for or even under the list price with only one offer. While many houses are inciting bidding wars and commanding top dollar, he says there are also many good homes selling at more reasonable values.
That's not to say the market is going anywhere near down.
Just like his counterparts, Dubienski is projecting a very positive spring real estate market.
"With interest rates the way they are and supply and demand, I think we're going into a great spring," he says.
