Winnipeg real estate board optimistic despite dip in April sales

Winnipeg’s real estate market is in the midst of a slump compared to the last five years, with experts citing reverberations from inflation and interest rate uncertainty as possible culprits.

The Winnipeg Regional Real Estate Board (WRREB) released April 2023 market data, showing while the number of MLS sales continues to rise, it was not at the same level seen last April or over the five-year average.

However, the market area's active listings continued to see growth, with increases over last month, last year and the five-year average.

According to the board, of the 1,103 sales across the market region, 729 were in Winnipeg with 374 in rural areas outside of Winnipeg.

Of the 3,584 active listings in April, 1,600 were in Winnipeg and 1,984 were in rural Manitoba areas.

The board’s director of external relations and market intelligence Jeremy Davis says inflation and interest rates could be driving the neutral sales results.

He notes the market is in an interesting time when it's difficult to find points of comparison.

“Aside from the obvious impacts to the economy and individual financial circumstances from the pandemic, you'd have to go back about 15 years to find the last year that Bank of Canada interest rates were at the same level as they are now, and that’s not really a useful time to compare to,” he said, citing a slew of factors like the pandemic, the economy and immigration.

He notes the real estate market naturally ebbs and flows, and numbers were bound to come down after the red-hot pandemic sales boom and with the introduction of the first interest rate hike in May of 2022.

Despite the short term market fluctuations, Davis says the overarching belief is that the local market outlook is favourable, but May and June will be watershed months.

“That is really the time that the market really tends to increase and pick up, so I think what happens in May and June will be a good indicator of how the rest of the year fares.”

APRIL SALES, LISTINGS UP COMPARED TO LAST MONTH

Other key takeaways from the data – MLS sales in April were 90 per cent higher than January, 68 per cent higher than February and nine per cent higher than March.

April listings were 28 per cent higher than January.

Residential detached homes made up 69 per cent of all home sales in April. Southwest Winnipeg had the most sales in the city, representing 30 per cent of all Winnipeg residential detached home sales.

On the condo front, active listings were up 42 per cent compared to 2022 but down 19 per cent compared to the five-year average.

Of the 171 total condominium sales in April, 142 were in Winnipeg.

WINNIPEG CURRENTLY IN BALANCED REAL ESTATE MARKET: WRREB

Davis says Winnipeg is currently in the midst of a balanced market, meaning there are equal opportunities for both buyers and sellers.

He notes now is a good time to either list or buy, but there are still many factors to consider.

“Speaking with a realtor is the best course of action because they can help strategize, best plan of attack."