Resale Homes
Resale Homes
Winnipeg housing market stands up to recession
As Winnipeggers, we're used to taking a beating from our fellow Canadians about where we live. Long, cold winters and mosquito-infested summers are just some of the things we are criticized for. (OK, I'll admit that after the weather this past week, even I wonder why we live here!)
But as the rest of the country deals with the impacts of the recession in most sectors, including the real estate market, Winnipeg has one shining light that puts us ahead of most Canadian cities: the local real estate market is holding its own and not taking the hit that many other markets have experienced.
In most other centres, housing prices have taken a sharp fall as the economy has come falling down. According to Adrienne Warren, a senior economist with Scotiabank in Toronto, most real estate markets in Canada have shifted to become buyers' markets, where supply is exceeding demand. She says that's a strong shift from what we've seen in recent years.
"There is a slowdown in the market as there is quite a bit of concern out there among consumers," says Warren, who specializes in the real estate market and produces a quarterly market report. "Demand for houses has softened as the economy has turned down in all parts of the country."
That is, except for Winnipeg. It's become a bit of an iceberg, standing on its own in the real estate world. As other cities' real estate markets have plummeted, housing prices in Winnipeg are still up year over year.
Take a look at the average home price in Winnipeg compared to the rest of the country. The national average price for a home was $281,971 in February 2009, a drop from $310,379 at the same time last year. On the flip side, the average sale price of a home in Winnipeg increased to $188,795 in February 2009 as compared to $173,809 in February 2008.
"Most places have seen a real deterioration in affordability," notes Warren. "But prices are still fairly affordable in Winnipeg and lower than most other markets."
The Canadian Real Estate Association says sales of existing homes fell by 17.1 per cent across Canada in 2008 and is predicting another drop of 16.9 per cent in 2009. Home prices fell on average by 9.6 per cent across the country from February 2008 to February 2009.
For Manitoba, however, the Canadian Real Estate Association says the province will get off much better in the housing downturn. CREA is forecasting only modest declines in home sale prices in 2009. While that is a contrast from the six per cent increase it originally forecast, it's still much better than many other places.
So there you go. We may have relentless cold and a never-ending winter, but we still have a very warm housing market. And, for people like my close friend who is being outbid on houses in River Heights after putting in many offers well over the list price, you might even call parts of our real estate market "hot."
Stay tuned for more on that story next week.
Resale Homes
Sold
North End
Address: 868 College Ave.
Asking Price: $105,900
Sold Price: $116,000
Taxes: $1,045.23
Square Footage: 1,072
Bedrooms: 2
Bathrooms: 1
Lot Size: 25 x 91
Listing Agent: Michael Leclerc, Century 21 Carrie.com, 987-2166
St. James
Address: 106-1460 Portage Ave.
Asking Price: $89,900
Sold Price: $85,000
Taxes: $ 1,717.81
Square Footage: 810
Bedrooms: 1
Bathrooms: 1
Listing Agent: Sandy Lopston, Coldwell Banker National Preferred, 985-4300
Transcona
Address: 113-1683 Plessis
Asking Price: $119,900
Sold Price: $119,000
Taxes: $1,294
Square Footage: 903
Bedrooms: 2
Bathrooms: 1
Listing Agent: James Born, Newman Greenberg & Associates, 784-3378
Fort Richmond
Address: 422-3081 Pembina Hwy
Asking Price: $139,900
Sold Price: $138,500
Taxes: $1,672.00
Square Footage: 1,132
Bedrooms: 2
Bathrooms: 1
Lot Size: N/a
Selling Agent: Shawn Sommers, Century21carrie.com, 987-2100
North Kildonan
Address: 259 Strood Avenue
Asking Price: $189,900
Sold Price: $195,100
Taxes: $2,596.36
Square Footage: 809
Bedrooms: 2
Bathrooms: 1
Lot Size: n/a
Listing Agents: Marnie and Laura Ross, Newman Greenberg & Associates, 784-3555
Offered At
St. John's
Address: 386 Aikins Street
Asking Price: $89,900
Taxes: $755.62
Square Footage: 1,520
Bedrooms: 4
Bathrooms: 2
Lot Size: 30 x 100
Listing Agent: Shawn Sommers, Century21carrie.com, 987-2100
Westwood
Address: 282 Whitegates Crescent
Asking Price: $229,900
Taxes: $2,948.36
Square Footage: 1,118
Bedrooms: 3
Bathrooms: 2
Lot Size: 52 x 107
Listing Agent: Michael Leclerc, Century 21 Carrie.com, 987-2166
Tuxedo
Address: 310 Laidlaw Boulevard
Asking Price: $449,900
Taxes: $ 4,490.74
Square Footage: 1,902
Bedrooms: 2
Bathrooms: 3
Lot Size: 75 x 130
Listing Agents: Marnie and Laura Ross, Newman Greenberg and Associates, 784-3555
Real Estate Professionals:
We're looking for your recently sold homes to feature in Sold!
Please submit the information listed here as well as a high-resolution photo (200dpi). Appearing in Sold is free. Send your home information to Tracey Thompson at tracey.thompson@mts.net.
Resale Homes
House prices falling all over, but not in Winnipeg
IF you're in the market for a new home this spring, local realtor Bo Kauffman has an important piece of advice.
"If you are seriously looking for a house in Winnipeg, turn off CNN," says Kauffmann, a realtor with Re/Max Performance Realty.
He says Winnipeg makes up only two per cent of the national housing market, a small fraction of the big real estate picture. While the real estate market may be plummeting in other cities across Canada, and particularly in the U.S., Winnipeg housing values are holding their own.
"The real estate market is very local," Kauffman says. "It's as tough as ever to get a good house in Winnipeg."
Kauffman shared his advice with potential homebuyers at a seminar last week that included the views of Lewis Penner of Crosstown Civic Credit Union and David Vincent of the Tacium Vincent Orlikow law office.
This is the third year that the trio has put on the free seminar to give first-time buyers and others who haven't been in the market for awhile an education on market conditions and information on what to expect in the home-buying process. Combined, the realtor, lender and lawyer provide information on all angles of buying a house.
"In real estate, buyers have the same questions over and over again," Kauffmann says. "My best friend is an educated buyer."
The Winnipeg market is as hot as ever, Kauffmann tells clients, so don't expect discount deals. Just last week, Kauffmann sold a house in St. Norbert for well over the asking price. Listed at $159,900, there were 26 showings and seven offers. The house sold for $180,000, with the four top offers all within the same price range.
"Winnipeg is certainly not like other markets," he notes.
If you are looking for a home priced higher than $350,000, Kauffmann says there are good houses going for good prices. The $150,000-to-$200,000 market that is the most competitive.
"The starter homes are really driving the Winnipeg market now," he points out.
Part of that is because interest rates are so low.
"Now is the lowest it has ever been in my nine years in the business," Penner says. "I have never seen variable rates this low."
Whatever type of house you are looking for, Penner stresses the importance of being pre-approved for a mortgage.
"That way, when you go to make an offer, you know what budget you can afford," he explains.
Penner stresses there are other costs to keep in mind that can make a difference in your budget -- taxes, interest and heating costs all add up.
There's also the land-transfer tax to consider, adds Vincent, who specializes in real estate law.
"The biggest single factor changing legal costs is the land-transfer tax," he explains. For a house that sells for $200,000, the land-transfer tax is $1,700. It goes up at two per cent of the value after that. That money is outside the selling price or lawyer's fees and it's due the day you take possession of the new house.
