Market Health Check
It's certainly been an interesting Spring market...
Yes, homes are selling. Many are even selling above list price. But certainly the Winnipeg real estate market overall is down.
New listings to market are down and with that sales are down as well.
The good news? Well, we've all been told to stay home and practice social distancing and we've definitely been doing that. We have some of the lowest number of cases across Canada and certainly across North America and around the World!
This is actually great news.
The public has done a fantastic job helping to "flatten the curve" and have allowed our healthcare professionals to fight this virus.
We've already started to notice a positive trend in the number of property showings week over week. Buyer confidence is returning and people are excited to get out of the house and continue their home search. This could also be attrributed to the warm weather we are getting which is very common with the Spring market.
We are getting closer and closer each day to things getting back to normal and it's looking like we'll still get to enjoy another beautlful summer in Winnipeg.
I'd also like to address is the idea of home prices "falling off a cliff." I've heard some concern about this and wanted to make sure you had the facts.
Royal LePage Canada put out an article last week that said if things get "back to normal" by June 1st, we wont see any price softening in Winnipeg at all. If they don't get back to normal by the Fall or closer to the end of the year, we may see a 2% redcution in home values over 2019.
A quick reminder that 2019 was a flagship year, so to see just a 2% softening in home values is not the end of the world.
Simple economics shows that home values drop in price when there are an abundance of new listings coming to market and a reduction in the active number of buyers.
Right now, that's not the case.