April 8, 2015

March MLS® Sales Up 9%

 

 

WINNIPEG - More spring-like weather this March compared to the previous few years helped spur more sales activity. MLS® sales climbed over 1,000 and ended up being just 2% off the ten-year March average of 1,025. First quarter sales activity showed a similar pattern, also off 2% from the ten-year average of 2,318 MLS® sales. 

 

MLS® dollar volume of $276 million was up 11% over March of last year and up 9% over the ten-year average.

 

New and available listings continue to be impressive when compared to last March.  New listings entered on the MLS® in March increased 33% while the active listings or existing inventory were up 29% to 4,338 MLS® listings. Whatever is being sold is more than being replenished by the entry of new listings on the system.

 

You have to go back to 1999 to find as many listings available for sale at this time of year and back to 1995 when there were more new listings entered on MLS® in March. For the first quarter, 5,499 listings have been entered on MLS®, an increase of 37% over the 10-year average.

 

March MLS® unit sales were up 9% (1,005/919) while dollar volume increased 11% ($276.23 million/$249.1 million) in comparison to the same month last year. Year-to-date MLS® sales increased less than 5% (2,265/2,164) while dollar volume was up just over 5% ($600.0 million/$570.9 million). The 5,499 listings entered on MLS® for the first quarter are up 26% from the same period in 2014.

 

“Conditions are ideal for buyers to take advantage of a healthy supply of listings and historically low mortgage rates,” said David Mackenzie, President of WinnipegREALTORS®.  “Our mortgage brokers are telling us we have likely not seen rates as low as we have now since the 50’s or 60’s.”

 

MacKenzie added, “The much more balanced market has kept prices totally in line with last year so affordability remains a real strength of our local market compared to other Canadian cities.”

 

The most active residential-detached price range in March was the $250,000 to $299,999 price range at 19%. It eked out a slight edge over the $200,000 to $249,999 range which represented 18% of total sales. 3 out of 4 residential-detached sales in March were between $150,000 and $350,000.  

 

 

 

For condominium sales activity in March, the busiest price range was from $150,000 to $199,999 at 28%. Not far behind was the range from $200,000 to $249,999 at 25%.

 

The average days on market for residential-detached sales was 28 days, 6 days quicker than last month and the same pace as March 2014. The average days on market for condominium sales was 45 days, 3 days faster than last month and 13 days off the pace set in March 2014.

 

 

March 2015

Above List Price

At List Price

Below List Price

Residential-Detached

21%

9%

70%

Condominium

15%

14%

71%

 

 

 

For further information, contact us! 204.952.3334

 

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PRESS RELEASE

April 8, 2013

 

                                                  

A BELOW AVERAGE MARCH FOR MLS® SALES

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MLS® Sales Down 26%; Dollar Volume Off 15%

 

WINNIPEG - Will someone turn the pilot light back on and warm up our MLS® market?  You have to go back to the old Winnipeg Jets era when the likes of Teemu Selanne and Thomas Steen were entertaining fans at the Winnipeg Arena to find the last March where sales were lower than March 2013. It just so happened to be the 1994-1995 NHL lockout season where only 48 games were played. Sound familiar! And lack of scoring or conversions of listings to sales clearly hurt sales activity in March. To use another sports analogy, many buyers decided to sit on the sidelines and not venture out onto the field of play.

 

Listings were not the issue as new ones coming on the market were down less than 7% while the active inventory at the end of March remains up 4% over the same time last year. A collective buyer pause seemed to engulf the local real estate market. If it helps restore some supply-demand balance to what has been one of the tightest resale housing markets in the country, this development should be viewed favourably by buyers feeling unduly pressured by a lack of listings.

 

The extent of the decline in sales activity is evident when you consider March 2013 MLS® sales were 19 per cent below the 10-year sales average of 1,043 for March. You more or less expect March now to consistently deliver over 1,000 MLS® unit sales.

 

On a quarterly basis you only have to go back four years to find a poorer MLS® sales performance and dollar volume is the third highest on record behind the previous two years.

 

March MLS® unit sales decreased 26% (844/1,138) while dollar volume was off 15% ($224.7 million/264.7 million) in comparison to the same month last year. Year-to-date MLS® unit sales are down 13% (2,156/2,483) while dollar volume dropped 6% ($550.4 million/$589.0 million) in comparison to the same period last year. Listings entered on MLS® for the first three months have decreased less than 4% in comparison to the same period in 2012.

 

“Instead of March madness it was Match calmness with buyers noticeably absent from our MLS® market at this time of year,” said Richard Dettman, president of WinnipegREALTORS®. In looking more closely at what happened, the drop off in buyer activity was three times greater in the first-time homebuyer price ranges than in the upper ones. In fact, our highest price range of over $500,000 clearly outperformed March 2012 in sales, less days on market and having a higher sale price of $1,650,000.”

 

In a recent membership survey WinnipegREALTORS® conducted this year over 90 per cent of the respondents stated they either strongly agree, agree or somewhat agree that they are having difficulty finding homes for first-time buyers which they can afford. This result has never been more definitive in its conclusion. 

 

While some vendors may be unrealistic in their expectations for what sales price they expect to get for their home, Winnipeg still has some of the most affordable home prices in the country so other front end costs such as high provincial land transfer taxes (no first-time homebuyer exemption in Manitoba) have to be considered when you do further analysis on this affordability issue.

 

“ Good or bad, we do not overreact either way as one month does not make a trend so we will be watching April very closely to see if spring thaw brings many more buyers out of the woodwork and MLS® sales are more in line with our expectations,” said Dettman.

 

The most active residential-detached price range in March was from $250,000 to $299,999 at 22% of total sales activity. Second most active was the $200,000 to $249,999 range at 18%.  For condominiums, the busiest price range was from $150,000 to $199,999 at 30 % of total sales. The $200,000 to $249,999 price range had another 21% of condominium sales.

 

The average days on market for residential-detached sold properties in March was 28 days, one day off last month’s pace and 3 days slower than March 2012. As for condominium sales, the average days on market was 27 days, 19 days quicker than last month and 4 days ahead of March 2012.

 

 

  

Questions or concerns ? Call me Cool

 

Sebastian Sotello

c. 204.9523334

Royal LePage Prime

 

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