The Pot is Starting to Boil
WinnipegRealtors has just printed the Market Release for September and it is clear: Even as the weather is cooling off, the market is heating up. Both the value of an average home and the number of homes sold in the month are rising despite September typically being a “cooling month” for the market. The average price of a detached home is up nearly 11% and the likelihood of selling that house is extremely high.
There is upward pressure on the market to produce more houses for sale but COVID has caused many to put off plans to sell and therefore decreased supply. Active listings are down by nearly 40% and yet volume of sales has hit unprecedented numbers.
Simply Speaking?
To break it down into simple terms, those who want to move are willing to pay top dollar to do so, and those who do not want to move are not motivated by the premium profit. This pressure is being seen in almost every area of every city and the surrounding municipalities of Manitoba.
What are the Gauges that Suggest this Market is Unusual?
This month has shown 3 key indicators of a shifting market
1. First time home buyers now have to enter the market with more money, which shows the value of homes is on the rise.
2. Vacant land sales have increased 179% from forecasted this year, which indicates more people are planning to build because they cannot buy.
3. Prior to this month, the highest volume of sales occurred in houses between $250,000 - $299,000. However now the highest volume has shifted to the $300,000 - $349,900 range. This demonstrates again that value of homes are rising.
In Short?
If you are thinking of selling your home, now is the time. If you are thinking of buying, be prepared to find less options and more competition. Although this is not true of every area in Manitoba, it seems this trend overall is on the rise.
