Condos expected to become more affordable in 2023

As we roll into the New Year, one home type might become more affordable than the others.

After going through a couple of years of bidding wars, price increases and sales over the asking price, the market is expected to balance out.

"This market is going to be one of balance, one of reason and rational home buying and home selling," said Michael Froese with Royal LePage Prime Real Estate.

While the market for single-family detached homes will be less chaotic – a one per cent price increase – it's predicted that condos will be a different story according to numbers from the 2023 market survey forecast.

In Winnipeg, the median price of a condominium is forecast to drop three per cent to just over $234,000 in the fourth quarter of 2023.

"There's some larger projects coming to market in 2023, which will create more inventory, which therefore affects the pricing."

Froese said the detached housing market will also impact the price.

"With prices softening in the residential detached market, maybe now they can look into getting into one of those, whereas a year ago, eight months ago, it was really tough to get into."

That's exactly what mortgage specialist Daryl Harris is seeing.

"People were looking at condos because of affordability and availability because single-family homes were in such demand," said Harris, who is with One Link Mortgage and Financial. "(We are) starting to see that trend maybe change a little bit, where more people are looking at single-family homes because they can put a condition of financing, they can have a home inspection, not as much competition."

Froese is expecting the year ahead will be relatively flat, but stable.

"People still want to buy homes, they want to move. It just might not be with the same intensity and frequency that we've seen in the last year," said Froese.

Royal LePage is predicting in the fourth quarter of next year the median price for a single-family detached home will be just over $410,000.