Winnipeg saw home prices soar at end of 2021

New data from Royal LePage shows that the home prices in Winnipeg soared at the end of 2021.

The Royal LePage House Price Survey released on Friday shows the aggregate price of a home in Winnipeg increased 9.6 per cent year-over-year in the fourth quarter of 2021. This increase brought the aggregate home price – which is the weighted average of the median values of all housing types -- to $357,000.

When looking at individual housing types, the median price of a single-family detached home increased 14.7 per cent to $390,800; and the median price of a condo increased 16.1 per cent to $233, 600 at the end of 2021.

Michael Froese, a broker and manager with Royal LePage Prime Real Estate, said inventory shortages caused by buyer fatigue, particularly among first-time buyers, suggest a lot of pent-up demand will transfer to 2022.

"We've been experiencing this since May of 2020, so it’s almost been two years now of the pandemic in the real estate market and it’s been headline news throughout. We just haven't had the amount of supply to support the growing demand," he said.

"The importance of home ownership has really skyrocketed through this pandemic. Our homes have become our libraries, our classrooms for all those teachers out there this week, our gyms, our coffee shops, home has become really important."

Froese said the demand has been booming but because the supply hasn't been able to keep up, prices are being pushed upward.

He said he expects this trend to continue in the spring.

"Supply is not solved overnight. Homes aren't built overnight. Homes aren't built in a month, or six months and sometimes even within a year," Froese said.

"The supply issue is not going anywhere and so we do expect this trend to continue into the spring market."

Froese added that Winnipeg’s condos are seeing strong price increases due to a low supply of detached homes that is continuing to drive demand for more affordable housing. He said while detached homes are typically the most highly sought-after housing type in Winnipeg, some buyers are considering alternative property types that are more affordable.

Royal LePage noted that it is projecting that the aggregate price of a home in Winnipeg will increase six per cent in the fourth quarter of 2022 compared to the same period in 2021.

Nationally, the aggregate price of a home increased 17.1 per cent to $779,000 year-over-year in the fourth quarter of 2021.