Winnipeg Real Estate Market Statistics - October 2024
October 2024 Real Estate Market Report for Manitoba
The Winnipeg real estate market showed strong performance in October 2024, with gains across All MLS® sales, average prices, and dollar volume compared to the previous month and October 2023. Winnipeg saw active demand, with notable increases in residential detached homes, condominiums, and residential attached properties, setting the stage for one of the most dynamic months of 2024.
October 2024 Key Metrics:
All MLS® Sales: 1,337, a 7% increase over September and a 19% increase from October 2023.
Total MLS® Dollar Volume: Over $508 million, marking a 28% increase from last October.
Active Listings: 3,624, down 10% from October 2023 but still above the 5-year average.
Residential Property Performance
Residential Detached Homes:
Sales: 927, up 19% from October 2023.
Average Price: $427,237, representing a 7% increase year-over-year.
Popular Price Range: The $600,000-$699,999 range was the most active, accounting for 10% of sales (90 homes).
Condominiums:
Sales: 212, a 24% increase from October 2023.
Average Price: $265,083, an increase of 2% over last October.
Top Sales Locations: Osborne Village and Waverley West recorded the highest condominium sales.
Popular Price Range: $150,000-$174,999, representing 12% of total sales.
Residential Attached Homes:
Sales Growth: Up 27% over October 2023, continuing to drive increased market activity and demand.
Year-to-Date (YTD) Metrics (January to October 2024)
Total MLS® Sales: 12,822, up 12% from 2023.
Total Listings: 20,692, up 2% from the previous year.
Total Dollar Volume: Over $4.8 billion, up 18% year-over-year.
Residential Detached: 8,848 sales YTD, with an average price of $423,217, up 6%.
Condominiums: 1,923 sales YTD, with an average price of $275,777, up 6%.
Residential Attached: 885 sales YTD, with an average price of $365,218, up 10%.
Market Insights and Advocacy Efforts
The Winnipeg Regional Real Estate Board has continued its advocacy work, joining other Canadian real estate boards at the Canadian Real Estate Association’s PAC Days Conference in Ottawa. The Winnipeg Regional Real Estate Board emphasized solutions to the current housing crisis, including recommendations for offsite construction, national housing initiatives, and extending tax relief to non-profit housing providers. Marina R. James, CEO of Winnipeg Regional Real Estate Board, reaffirmed the board's commitment to addressing housing affordability and supporting meaningful community solutions.
Notable Neighborhoods in October
Waverley West recorded the highest residential detached sales within Winnipeg, followed by Polo Park.
Outside of Winnipeg, Steinbach and Morden/Winkler were the leading areas for detached home sales.
Osborne Village led in condominium sales, with Waverley West close behind.
Luxury Market
There were 17 residential detached homes sold at or above $1 million in October, nearly doubling from 8 in October 2023. The highest sale reached just over $2.3 million.
Summary
October 2024 was one of the most active months on record, reflecting Winnipeg's strong market fundamentals and buyer interest across property types. Continued growth in both urban and suburban areas, coupled with proactive market support from Winnipeg Regional Real Estate Board, positions Winnipeg as a thriving and resilient market moving into the final months of 2024.
Deciding to Buy or Sell in Winnipeg
Buying Real Estate: Overcoming Hesitations and Understanding the Market
Buying real estate is a major decision, and many people feel they need help deciding when to make this choice. In today's competitive market, waiting too long could mean missing out on great opportunities. Understanding current market dynamics and addressing personal hesitations can make all the difference.
Key Factors Influencing the Real Estate Market
External factors such as economic conditions, government policies, social trends, and interest rates shape the real estate market. Understanding these market factors can give you an edge when navigating real estate.
Here’s how they impact your decision-making:
Economic Health: The economic conditions of employment rates, GDP growth, and consumer confidence, affects people's ability to buy homes. People may be less likely to buy when the conditions of the economy are not well, leading to less demand and potentially lower prices on properties.
Government Policies: Taxation rebates, plans and incentives can either stimulate or slow market activity. For instance, tax credits for first-time homebuyers increase demand, while higher property taxes may deter it. Provincial policies will vary.
Social Factors: Demographic shifts, such as more new home buyers entering the housing market, can push demand. Changing lifestyles or the rise of remote work and home based businesses can influence what types of properties are most attractive. More people immigrating to Canada or expanding their families can increase demand.
Interest Rates: Low interest rates make borrowing cheaper, boosting home buying activity. On the other hand, high rates can reduce buyers' purchasing power by reducing the amount with one has to budget for. Offering insights into current rates, Winnipeg Regional Real Estate Board updates this information weekly on their website. For the most accurate current interest rate, it is best to check with your lender, wether it be a bank or through a mortgage broker.
Housing Inventory: When there’s a low supply of homes, competition increases, often leading to bidding wars. A high supply gives buyers more negotiating power.
Making the Decision to Buy
It’s normal to have questions about purchasing a home. Although taking on a mortgage may seem daunting at first, the long-term benefits—building equity, financial security, and creating a home that’s truly yours—far outweigh the initial doubt.
Start by understanding the process, the current market, and your financial readiness. Having a great real estate agent who understands your needs and goals is impportant.
3 Factors That May Influence Your Decision to Buy
CommitmentHomeownership is a major financial commitment that in the long-term builds financial stability, offers personal fulfillment, and roots you in a community. Being informed about the process, from securing a loan to negotiating a deal, through a real estate agent will ensure you find a home that fits both your needs and budget.
LocationChoosing the right location is crucial—not just for the house itself but for your overall lifestyle. Your choice of city may be determined by your place of work, family and friends. If you know the city you want to buy in, research neighborhoods thoroughly, looking at factors like schools, amenities, accessibility to work and future development. Visiting at different times of day and talking to residents will give you a feel for the area. Ultimately you want to feel a sense of ownership pride in a community that you feel connected too.
AttachmentEmotional factors often play a bigger role in home buying than we realize. Whether it's the fear of leaving behind memories or the desire to find the "perfect" home, these feelings can complicate your decision-making. Strike a balance between what you want emotionally and what makes practical sense. Your real estate agent can help you find a home that meets your needs while considering your personal preferences.
Listing Your Property: 11 Reasons That May Influence Your Decision
Selling a home is a big decision that involves personal, financial, and emotional factors. The decision to sell should align with both your financial goals and personal needs. Being ready and prepared to list your home may not be as easy as it seems, several factors can create doubt.
1. Emotional Attachment
A home is more than just a physical space; it’s where memories are made. Whether it’s raising a family, celebrating milestones, or spending years in a neighborhood, emotional connections to the home can make it difficult to let go. When it comes time to making the decision to sell, you may feel a strong attachment to the memories associated with your home, which can cause delay in the decision to sell.
2. Uncertainty About Finding a New Home
The fear of not being able to find the right new home can be a big reason for hesitation. In a competitive market, sellers worry that while they may sell their current home quickly, they might struggle to find or afford a new one. Concerns about tight inventory, bidding wars, or increased prices in the area they want to move to can make selling feel like a risky move.
3. Market Conditions
Some sellers may hesitate if they believe it’s not the right time to sell. For example, in a buyer’s market, where there is an abundance of homes for sale and less demand, sellers may worry they won’t get the best price for their property. Alternatively, if they expect the market to improve in the near future, they might hold off, hoping for better prices down the line.
4. Financial Considerations
Selling a home comes with costs beyond just moving. Sellers may hesitate if they’re concerned about:
Capital gains taxes (if the home has significantly appreciated).
Transaction fees like real estate commissions, legal fees, and closing costs.
Mortgage penalties for breaking a mortgage early. Additionally, if the homeowner’s mortgage balance is close to or higher than the home’s market value, selling may not provide a significant financial gain, causing them to hesitate.
5. Reluctance to Deal with the Stress of Moving
Moving is often seen as a major life event, and the process can be stressful. Preparing a home for sale, dealing with showings, negotiations, packing, and the logistics of moving to a new place can feel overwhelming. This stress can cause people to delay or avoid selling altogether.
6. Uncertainty About Future Plans
If homeowners aren’t sure where they want to live next or what their future plans are, they might hesitate to sell. Maybe they’re considering relocating but haven’t decided on a specific area, or they’re unsure if they want to downsize, upsize, or rent. This uncertainty can lead to delays in making a firm decision.
7. Fear of Change
Selling a home often represents a significant life change. Whether it’s moving to a new city, downsizing after children leave, or transitioning to a different phase of life, change can be intimidating. The comfort of staying in a familiar place can outweigh the perceived benefits of selling, leading to hesitation.
8. Investment Potential
Some homeowners may view their property as an appreciating asset and hesitate to sell if they believe its value will continue to rise. They may choose to hold on to the home as an investment, especially in hot real estate markets where prices are climbing steadily, thinking they can sell later for a higher return.
9. Concerns About Renovations or Repairs
If the home needs significant repairs or updates to appeal to buyers, sellers may hesitate due to the cost, effort, or time involved in getting the property ready for sale. The idea of dealing with home improvements or renovations, especially if they’ve been postponed, can make selling feel like too much of a hassle.
10. Fear of Losing Out on Rental Income
If the property is an investment or rental property, the homeowner may hesitate to sell if the rental income is reliable and profitable. They may prefer the steady flow of rental income rather than taking a lump sum from selling the property, especially if they rely on the income for their lifestyle or retirement.
11. Timing Around Personal Life Events
Personal factors, such as upcoming life changes (retirement, children moving out, job relocation, etc.), can impact the timing of a sale. Sellers may hesitate because they’re waiting for a better personal or financial situation to align with the sale.
Overcoming the Hesitation to Sell
While hesitation is natural, many of these concerns can be addressed with careful planning. A good real estate agent can help homeowners navigate these challenges by:
Providing accurate market insights so they know when it’s a good time to sell.
Guiding them through the buying and selling process so they don’t feel overwhelmed.
Helping with financial assessments to ensure the decision is sound.
Suggesting ways to make moving less stressful, such as recommending movers, stagers, and repair professionals.
Benefits of Listing Your Property
Listing your home for sale opens the door to a wide range of opportunities—whether it’s financial gain, lifestyle improvements, or simply making a change that aligns better with your current needs. If you’ve been considering making a move or capitalizing on the current market, it can be a rewarding and smooth process that sets you up for future success.
Working with a trusted real estate professional can make the process easier and more manageable.
Here are some key benefits to putting your home on the market:
1. Unlocking Equity
One of the biggest benefits of selling your home is unlocking the equity you've built over the years. Whether you've paid off a substantial portion of your mortgage or your property has appreciated in value, selling allows you to convert that equity into cash. This can be used for:
Purchasing a new home.
Investing in other opportunities.
Paying off debt or funding major life events (like retirement or your children's education).
2. Taking Advantage of a Hot Market
If the real estate market is currently favorable for sellers (a seller's market), listing your home can lead to higher offers, competitive bidding, and a faster sale. In such conditions, low housing inventory and high demand may allow you to sell at a premium price, maximizing your return on investment.
3. Downsizing or Upsizing to Fit Your Needs
If your current home no longer fits your lifestyle—whether it's too big now that your kids have moved out or too small for your growing family—selling gives you the opportunity to find a home that better suits your needs. Downsizing can also lead to lower monthly expenses, while upsizing may provide the extra space or amenities you've been dreaming of.
4. Moving to a More Desirable Location
Selling your home can be the key to relocating to a more desirable neighborhood, closer to work, family, or amenities. If your current home no longer aligns with your lifestyle or if you're seeking a change of scenery, listing your property gives you the flexibility to move to an area that better suits your preferences.
5. Upgrading to a Newer or More Modern Home
If you’re looking for more modern features, energy efficiency, or better amenities, selling your older home could help you upgrade to a newer property. Newer homes often come with lower maintenance costs and modern conveniences that can improve your overall quality of life.
6. Relieving the Financial Burden
If maintaining your current home has become financially burdensome due to high mortgage payments, property taxes, or ongoing maintenance costs, selling can provide relief. Moving to a more affordable home or downsizing can reduce financial stress and free up cash flow for other needs.
7. Gaining Flexibility with Renting
If you're not ready to commit to buying another home right away, selling your property allows you to explore renting options. This can give you the freedom to test out a new neighborhood, travel, or wait for more favorable market conditions before purchasing again.
8. Capitalizing on Home Improvements
If you've recently invested in home improvements, like a kitchen remodel or new landscaping, selling soon after can help you capitalize on those upgrades. These improvements can increase the market value of your home and make it more appealing to buyers, allowing you to recoup your investment and potentially more.
9. Avoiding Future Market Downturns
Real estate markets can be unpredictable, and waiting too long to sell could mean missing out on favorable conditions. If there are indications that the market may cool down or if economic factors suggest a potential decline in property values, selling sooner rather than later could help you avoid a decrease in your home's value.
10. Lifestyle Change or Major Life Events
Life changes like retirement, job relocation, or family milestones may prompt the need to sell. Listing your home gives you the flexibility to adapt to these changes, whether it’s moving to a more convenient location, a retirement-friendly community, or closer to loved ones.
11. Eliminating Maintenance Stress
Owning a home comes with ongoing maintenance and upkeep responsibilities. If the costs or effort involved in maintaining your property are becoming overwhelming, selling can relieve you of that burden. This is particularly true for older homes that require more repairs, time, and money to keep in shape.
12. Opportunity to Make a Fresh Start
Selling your current home gives you a chance to start fresh, whether it's in a new city, a different type of property, or simply a home that better aligns with your current stage of life. Moving into a new home can be an exciting opportunity for personal growth, new experiences, and a better fit for your needs and lifestyle.
Choosing a Fixed Rate Mortage or a Variable Rate Mortgage
Understanding Competitive Interest Rates
The interest rate is one of the biggest factors in determining the total cost of your mortgage over its term. Look for:
Fixed vs. Variable Rates: Decide if you prefer the stability of a fixed-rate mortgage (with consistent payments) or the potential savings of a variable-rate mortgage (which may fluctuate based on market conditions).
Compare Rates: Shop around with different lenders to find the most competitive rates. Even a slight difference can save you thousands over the life of the loan.
Annual Percentage Rate (APR): The APR includes both the interest rate and any additional lender fees, so it’s a better representation of the total cost of borrowing. Compare APRs rather than just interest rates.
Advantages of a Fixed Mortage Rate
A fixed-rate mortgage provides the security of stable payments, protection from rising interest rates, and easier financial planning, making it a solid choice for buyers looking for long-term stability and predictability in their housing costs. Here are some key benefits:
1. Consistent Monthly Payments
With a fixed-rate mortgage, your monthly payments remain the same throughout the loan term, regardless of market interest rate fluctuations. This consistency makes budgeting easier since you’ll always know what your mortgage payment will be.
2. Protection Against Rising Interest Rates
In a fixed-rate mortgage, your interest rate is locked in at the beginning of the loan. This protects you from any potential future interest rate hikes. If rates go up, your payments won’t be affected, unlike with adjustable-rate mortgages (ARMs) that can increase over time.
3. Long-Term Financial Stability
A fixed-rate mortgage offers peace of mind, especially if you plan to stay in your home for the long term. You won’t have to worry about your mortgage payments increasing unexpectedly, which can help ensure financial stability over the life of the loan.
4. Easier Financial Planning
It’s easier to plan for other financial goals when your mortgage payments remain consistent, like saving for retirement or a child’s education. There are no surprises or sudden increases in payments, so you can manage your budget more effectively.
5. Straightforward and Simple
Fixed-rate mortgages are easy to understand compared to adjustable-rate mortgages. There are no complex adjustments, caps, or resets to worry about, making them a straightforward option for first-time homebuyers or those who prefer simplicity in their financial planning.
6. Potential for Refinancing
If interest rates drop in the future, you have the option to refinance to a lower rate, potentially reducing your payments. However, with a fixed-rate mortgage, you avoid the risk of your payments rising if interest rates were to increase.
7. Good for Long-Term Homeowners
Fixed-rate mortgages are especially advantageous if you plan to stay in your home for many years. Over time, as your income increases and inflation occurs, your mortgage payment will feel relatively smaller, giving you more financial flexibility in the long run.
8. Stable Housing Market
A fixed-rate mortgage can be beneficial in a stable or slowly rising housing market because it ensures that your housing costs won’t escalate even if the market shifts.
Advantages of a Variable Mortage Rate
A variable-rate mortgage can be a smart choice if you are looking for lower initial payments, anticipate selling or refinancing before the adjustable period, or expect interest rates to decrease in the future. It's best for buyers who have flexibility in their timeline or financial situation and are comfortable with the potential for future rate adjustments. Here are some of the key benefits:
1. Lower Initial Interest Rates
Variable-rate mortgages often come with a lower initial interest rate compared to fixed-rate mortgages. This lower starting rate can result in reduced monthly payments during the early years of the loan, making it more affordable upfront.
2. Potential for Decreasing Payments
If interest rates in the market decrease, your mortgage payments will also decrease. This flexibility can be beneficial if you anticipate a declining interest rate environment, allowing you to save money over the long term.
3. More Affordable in the Short Term
A variable-rate mortgage is ideal for buyers who plan to sell or refinance within a few years. The lower introductory rates can result in significant savings if you're not intending to keep the mortgage for the full term.
4. More Home for Your Money
Because the initial payments on a variable-rate mortgage are lower, you may qualify for a larger loan amount, potentially allowing you to buy a more expensive home than you could with a fixed-rate mortgage.
5. Flexibility
Variable-rate mortgages often have fixed-rate periods at the start (such as 3, 5, or 7 years) during which the rate stays constant. After that, the rate adjusts based on market conditions. This structure can be ideal if you plan to move or expect changes in your financial situation before the rate starts to adjust.
6. Benefit from a Downward Rate Trend
If market interest rates fall over time, a variable-rate mortgage allows you to take advantage of these decreases without needing to refinance. Your interest rate will adjust downward automatically, potentially reducing your monthly payments and overall interest cost.
7. Potential Savings Over the Loan Term
If you expect that interest rates will remain stable or drop in the future, you could end up paying less over the life of the loan than you would with a fixed-rate mortgage. This can be a long-term money-saving strategy, depending on the market environment.
8. Early Payoff Opportunity
Some buyers who anticipate a salary increase or other windfall may opt for a variable-rate mortgage. They can take advantage of lower payments in the early years and pay off the loan before the interest rate adjusts upward.
9. Fewer Upfront Costs
Some variable-rate mortgage options come with lower initial fees and closing costs than their fixed-rate counterparts. This can make it easier to get into a home with less cash needed upfront.
Mortage Considerations Beyond the Rate
When searching for a good mortgage, there are several key factors you’ll want to consider to ensure you're getting the best deal possible. A good mortgage goes beyond just a low interest rate—it includes terms that fit your financial situation, your long-term goals, and your lifestyle. Here’s what to look for:
Loan Term
The loan term (the number of years over which you’ll repay the mortgage) directly impacts your monthly payments and the total interest you’ll pay over time. Common terms include:
15-Year Mortgage: Higher monthly payments but less interest paid over time.
30-Year Mortgage: Lower monthly payments but more interest paid over the life of the loan.
20 or 25-Year Mortgage: May offer a compromise between monthly payments and total interest costs.
Choose a term that fits your financial situation and long-term goals.
Speed Up Your Payments
If you are currently paying a monthly mortage payment, you can accelerate these payments by switching your payment schedule. This will lower your principal amount and save you money over the term of your loan by reducing the interest you will pay on the life of the mortage.
Low Fees and Closing Costs
In addition to the interest rate, be aware of the various fees associated with taking out a mortgage. These can include:
Origination fees: Charged by the lender for processing the loan.
Appraisal fees: For valuing the home.
Underwriting fees: For verifying your application details.
Prepayment penalties: Fees for paying off the loan early.
Some lenders may offer lower fees or cover part of the closing costs, so ask about these charges upfront and factor them into your comparison.
Flexible Down Payment Requirements
The amount of your down payment will influence the size of your mortgage and whether you need to pay mortgage insurance:
Conventional Loans: Often require a 20% down payment to avoid private mortgage insurance (PMI), but some lenders offer options with as little as 5% down.
Government-backed Loans: As a housing finance solution, Canada Mortage and Housing Corporation (CMHC) provides mortage loan insurance, allowing for lower down payments of 5%. This is beneficial especially for first-time homebuyers, or those with a smaller down payment. Your lendor will be aware of this support at the time of your pre-approval.
Consider how much you’re able to put down and the flexibility offered by the lender. To avoid paying mortage insurance, consider a down payment of 20% or more.
Prepayment Options
Look for a mortgage that allows you to make extra payments without penalty. Paying a lump sum toward the principal can significantly reduce the total interest paid and shorten your loan term. This amount is usually determined on a per year basis as a one time payment, outside your regular payments. Some lenders offer:
Open Mortage: You can increase your payments, pay in full, refinance or renegotiate at anytime through out the mortage term without a prepayment penalty charge.
Closed Mortage: An annual pre-determined amount, allows you to put extra money toward the principal when you can. This can be done in a lump-sum or through the increase of your payment amount.
Portability
If you think you might move during the mortgage term, a portable mortgage can be beneficial. Portability allows you to transfer your mortgage to a new property without incurring penalties or needing to refinance. This feature can save you money and hassle down the line.
Penalties and Fees for Changes
Some mortgages carry stiff penalties for breaking the mortgage early (for example, if you sell your home or refinance before the term is up). Ensure you understand the costs involved with:
Early repayment: If there are fees for paying off the loan before the term ends.
Breaking the mortgage: Look into how much you would be charged if you decide to sell or refinance before your mortgage term is up.
Customer Service and Support
Consider the quality of customer service your lender offers. A good mortgage experience is not just about the numbers, but also about the support and advice you receive throughout the process. Look for:
Responsiveness: How quickly the lender responds to your inquiries.
Flexibility: Will the lender work with you if your financial situation changes?
Reputation: Read reviews and ask for recommendations from friends or family who’ve had positive experiences with their lenders.
Special Programs or Incentives
Some lenders offer special mortgage programs, such as:
First-time homebuyer incentives: These may include lower rates or down payment assistance.
Green home programs: Offering incentives for energy-efficient homes.
Interest rate lock-ins: Some lenders allow you to lock in an interest rate for a certain period, protecting you from rising rates during the homebuying process.
Flexibility in Loan Terms
Depending on your financial situation, you may want a mortgage that offers flexibility, such as:
Convertible mortgages: Allows you to switch from a variable-rate to a fixed-rate mortgage during the loan term if market conditions change.
Open mortgages: Let you pay off the loan early without penalties, though they may have higher interest rates.
In Summary
A good mortgage offers a balance of competitive interest rates, manageable fees, flexible terms, and responsive customer service. It’s important to compare multiple lenders, understand the long-term costs, and ensure the mortgage fits your current financial situation and future goals.
If you’d like help comparing specific mortgage options, feel free to reach out!
Tara Zacharias
Phone:+1(204) 293-0933