Amidst the financial challenges brought about by the COVID-19 pandemic, Manitoba has seen a remarkable surge in home sales, surpassing the record set in 2019. According to a recent release by the Manitoba Real Estate Association (MREA), over 15,000 properties were sold in the province in 2020, amounting to a staggering $4.81 billion in sales. These numbers have exceeded the overall sales record of $4.27 billion set in 2019.
"It's been a banner year for residential real estate in Manitoba," exclaimed MREA President, Glen Tosh. Despite the ongoing pandemic, home buyer demand has remained high as Manitobans seek additional living space to weather the storm. The year-to-date individual sales have also witnessed a 13% increase compared to the same period last year, with a total of 15,818 homes being sold.
A Record-Breaking Year
November 2020 stands out as the month with the highest home sales on record, reaching a remarkable figure of 1,231 sales. This represents a significant increase of 25.4% compared to the previous year. July witnessed the highest number of sales for the year, with 2,060 houses finding new owners.
Notably, the average home price in Manitoba saw a 4.3% increase, reaching $304,150. This rise in prices has created a seller's market, which can be frustrating for some buyers. Elizabeth Saftiuk, who recently bought a home in Winnipeg, experienced this firsthand. "I thought I went in with a very good, strong offer. But as it turns out, there were 17 other offers for that particular home, and it went for $106,000 over asking," she shared on CBC Radio's Up to Speed.
Overcoming Challenges
While the situation may seem challenging for buyers, many have found ways to navigate the competitive market successfully. Feliz Ebora, for instance, managed to avoid a bidding war by purchasing a house that requires some work. "I'm excited that we got in when we did and that we're kind of avoiding all of the the price hikes and also very excited to kind of grow our family in this area," she expressed.
However, MREA President Glen Tosh has expressed concern about the continuous growth in house prices. "We'll certainly be watching the market closely heading into the new year. As realtors, we want to see a housing market in Manitoba that is balanced and affordable," he emphasized. Ensuring an ample supply of available homes for purchase is crucial to maintaining affordability for buyers.
The Driving Forces Behind the Boom
One key factor contributing to the soaring home sales is the combination of high buyer demand and low-interest rates. This increased purchasing power has led to a competitive housing market, ultimately driving up home prices. The trend of increased sales is not limited to Manitoba alone; it has been observed across Canada throughout 2020.
The average home price in Manitoba rose 4.3 per cent to $304,150. The Manitoba Real Estate Association says it's a seller's market, which can cause some stress for buyers. (Image source: Katherine Holland/CBC)
In conclusion, despite the challenging circumstances presented by the COVID-19 pandemic, Manitoba has experienced an unprecedented surge in home sales. This remarkable achievement has been fueled by high buyer demand and favorable interest rates. While the competitive market can be frustrating for some, buyers are finding ways to navigate the challenges and secure their dream homes. The real estate market in Manitoba continues to flourish, with stakeholders keeping a close eye on ensuring the market remains balanced and affordable for all.