Thursday, February 4, 2010
Winnipeg Real Estate
Winnipeg’s Real Estate market shook off early year recession concerns and another major flood to post a much better second half and end the year with a strong result. It is a reflection of strong market fundamentals and the continued strength of the local economy which is supporting increased population growth.
MLS Real Estate sales numbered 12,182 in 2009, off only 7.4% from the record setting year of 2007. The average days on the market for sales was 29 days in 2009, 33% of all sales sold for greater than list price, 10% sold at list price and 57% sold for less than list price. Most impressive was the fact that the dollar volume of sales was 2.5 billion dollars, a new record for Winnipeg.
Resale housing transactions generate significant economic activity in and of themselves. For every house sale, it generates $40,000 worth of economic spin-offs. If you put MLS residential sales in 2009 at 11,382 allowing for removal of vacant lots, commercial properties, mobile homes and rural properties, you arrive at a total economic impact of over $450 million. Direct and indirect jobs are created as well.
In December the Bank of Canada had floated the idea of raising interest rates to cool off Canada’s hot Real Estate market. On January 11th in a speech in Edmonton, bank official David Wolf ruled out increasing interest rates to discourage mortgage lending. That would mean cooling off all economic activity. Wolf said “We would, in essence, be dousing the entire Canadian economy with cold water, just as it emerges from recession."
It appears with sustained low interest rates and consistent demand for housing 2010 will be yet another strong year for Real Estate sales in Winnipeg.
I am available at anytime to discuss the Real Estate market. Get the FACTS. Whether buying, selling or if you just have questions, call me anytime. I would be pleased to assist you, your friends or your family with your Real Estate needs.