The GVS Market Rundown
As uncertainty has spread across the real estate market we wanted to offer some insight on what has been happening and where we may be headed in the months to come.
What happened this month?
On the heels of one of the best quarters in Winnipeg real estate sales history, COVID 19 has thrown a bucket of water on a hot market. As you know, May and June are typically the two hottest months for real estate sales in the Manitoba market. According to recent data released from Winnipeg Realtors, April sales were down 30% and new listings dropped 42% compared to the same period in 2019.
From a dollar volume perspective, the first three months of 2020 saw rapid growth and all signs pointed to a seller’s market, prior to the onset of the COVID crisis. Even in the midst of the ongoing crisis though, April was not all bad; it is noteworthy that 20% of single family detached homes sold for over list price in April which indicates a strong confidence in the market.
What can we expect in the next few months?
Although April’s wait and see approach seemed to have slowed down the market, there are many signs that indicate it is not all doom and gloom. From a year to date perspective sales are only down 2% from last year overall, and it’s 3% when compared to the past 5 years. With government restrictions showing signs of lifting, buyers may be able to catch that hot spring market yet. If you are looking to refinance, you may be relieved to know that even with the low sales numbers in April there has not been much indication of a decrease in value of standard homes. This is good news if you have equity in your home and require a HELOC to get you through some short term challenges.
Lastly we would like to leave you with a ray of light in these trying times; the biggest challenge April saw was the lack of listings on the market. This does not necessarily mean prices have dropped, merely that prospective sellers are holding off due to social distancing restrictions or other barriers to the market. In fact, the month of April recorded the highest condo sale in Winnipeg history and was logged at $1,790,000. As we move into warmer weather and longer days, we also enter a time of hope and prosperity.
GVS news
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We maintain our commitment to safe inspection practices including virtual inspections, desktops and drive-bys, as well as using PPE and minimal contact while in your members’ home.
