No Sign that the Local Real Estate Market is Moderating

- From WinnipegREALTORS Real Estate News

Since there was no significant let up in MLS® sales during August, WinnipegREALTORS® reported that the moderating effect being experienced in other Canadian centres has not occurred at the local level.

August not only outperformed July, but turned in a well above average performance for the month. The month’s MLS® sales were only four per cent off the most active August on record in 2005.

Dollar volume was the highest it has ever been for August with close to $300 million in real estate transactions.

During August, 36 per cent of the entire inventory turned over. At the same time, a healthy dose of new listings came on the market.
“We are bucking a national trend which points to moderating local real estate markets,” said Shirley Przybyl, president of WinnipegREALTORS®. “With the most active real estate months behind us now our MLS® sales are right in line with our best historic results for the first eight months of the year and still ahead of last year’s  impressive pace.”
“If we have learned anything from what has happened in Winnipeg over the last few years, it is one resilient housing market that continues to perform remarkably well.”
Peter Squire, the market analyst for WinnipegREALTORS®, said the spring is always the most active period for the local market, but the summer months have been coming on strong for the past decade.
“We usually start slowing down in August, but August last year and this year has been a pleasant surprise.
“On a 10-year running average, August sales were up seven per cent.
“Sales are not moderating locally, nor are they measurably tapering off,” Squire added.
August MLS® unit sales decreased by less than four per cent to 1,241 units, while dollar volume was up almost one per cent to ($298.7 million, when compared to the same month last year.
Year-to-date MLS® sales are ahead by  two per cent to 9,387 units, while dollar volume has increased by seven per cent to $2.30 billion.
Przybyl said listings entered on the MLS® this year are also trending higher than in previous years.
Squire said the normal cycle is to experience a slight market slow down for the last four months of the year, but local MLS® sales remained strong entering September.
“September, while usually a good month for sales, is never as good as the summer,” he added.
The most active price range for residential-detached sales during August continued to be the $250,000 to $299,999 price range, which accounted for 22 per cent of total sales, although the next lower price range from $200,000 to $249,999 was close behind at 21 per cent.
August showed how diverse the WinnipegREALTORS® market is with house sales occurring at a high of $850,000 and a low of $15,000.
Condominium sales were most prevalent in the $150,000 to $199,999 price range, which accounted for 33 per cent of total sales.