The Winnipeg housing market is booming. However, with strong interest from buyers and investors, the city is facing a lack of inventory. According to a report in MoneySense magazine, Winnipeg’s average price for a single detached home was $327,959 as of March 2018, a 3% increase from the average 2017 price of $319,549.
While the residential, detached market is the most expensive property type, it’s also one of the most vulnerable to government policy, the article notes, such as the mortgage stress test, which is aimed at slowing down Canada’s housing market. “Recent price increases were a bit of a surprise considering the 7% drop in sales, when you compare the first quarter of 2018 to the 10-year average,” MoneySense said.
“The city’s greatest growth period was in the early 1900s,” said Mary Pidlaski, a realtor with Re/Max, in an interview with MoneySense. “Now, in the last decade, Winnipeg has experienced a similar amount of growth,” she added. Part of that growth is due to Winnipeg mayor Brian Bowman, who has focused on building the city up since he was elected in 2014.
“The new mortgage rules have prompted people to stay where they are,” says Pidlaski, “and this has translated into a lack of supply across the city, and particularly in the high-demand neighbourhoods. I’ve been in the business for almost a decade and continue to see prices rise in Winnipeg. I don’t think it’s a mistake to invest in this city.”
The Rental Side
Kris Thorkelson, owner of property management company, My Place Realty, is confident in the future of the Winnipeg rental property market, mentioning that real estate continues to be a smart investment. Thorkelson also adds: “More importantly, it’s incredibly rewarding to provide quality homes to Winnipeg residents and to be able to restore older, heritage-style buildings in the area.”
The Changing Face of the Rental Market
With that said, the reality is that, outside of how real estate markets are performing, the online marketing of rental properties is changing the industry. Specifically, online ratings and reviews are now consulted by prospective tenants regularly and that’s influencing the demand for properties.
“As a property owner and manager, it is extremely important to provide quality service to your tenants,” Kris Thorkelson mentions. “In the past, it was very hard for new tenants to find out what the service was like in a certain apartment building. Now it is quite simple to see property ratings. This is changing the sector. Some owners are changing; others are falling behind.”
Ownership Still Growing
Despite the rising price of real estate in Winnipeg, the sector continues to experience growth, according to a survey of realtors conducted by MoneySense. Two-thirds of realtors said that prices would “continue to rise” this year, adding that most home seekers (67%) believed that they “wouldn’t find anything suitable.”
Whether you are a buyer or a renter, there’s likely a place for you in Winnipeg, or other similar large cities. Prices vary widely across the country, ranging from the $1 million-plus homes in Vancouver and Toronto to the relatively inexpensive East Coast cities, such as Halifax, where the average cost of a house is less than $300,000. Choose your next home carefully.
