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Choice Realty Market Update – Spring 2016
Spring Market Update
As demonstrated in the chart below, sales are lower in both Winkler and Morden (as well as the rest of the Pembina Valley) compared to last year at this time. That said, this years market is considered “Balanced”; meaning there are benefiting factors for both buyers and sellers. Buyers have an advantage because there are a lot of listings to choose from and if a home is priced right, the sellers can expect a quick sale near the asking price. Specifically, within this year’s hot price range of $215,000-$225,000, sellers can experience a very fast sale of list price or higher – sometimes within a week!
We believe the reason for the lower sales numbers this year is that there are a lot of listings available in similar price ranges so buyers do not have any urgency to make an offer on a home. It takes the right home priced accurately to generate offers, and to turn into a successful sale.
In a balanced market, pricing your home right is of utmost importance. The market is price sensitive because if a home is priced above market value, it will likely sit on the market, require reductions, and may become stale (when a house is listed too long and it loses all buyer interest). A listing will generate the vast majority of interest in the first week of advertising making your initial price very important. As shown below, the average listing posted on our site will reach 800-1000 people in the first day of advertising! Then, viewer traffic will reduce substantially as time goes on.
Days on the Market (DOM) are an indicator of market strength. This data shows us how many days it takes to sell the average property or home.
The DOM statistics for Spring 2015 are very similar to 2016 with both Winkler and Morden varying slightly but remaining around 1 month to sell a home on average.
Code Changes That Will Effect The Cost To Build
Recent energy code changes have resulted in a large spike in building permits taken out by local developers in early 2016. MSTW Planning District recently announced that there is a province wide movement to lower home energy use by 20%. The new code will result in heightened standards for window & door energy retention, insulation, additional testing for joints and seals, and the requirement for drain water heat recovery systems.
The extent of the cost increase to new builds is unknown at this point but expenses will definitely increase to some degree. Permits purchased after April 1st 2016 will have to abide by the new energy codes. In the coming year, you may notice an increased price of developer spec homes due to these code changes.
If you have any questions about anything discussed in this newsletter, or are interested in buying or selling a property visit our website or give us a call!
Choice Realty Ltd
*stats provided from MREA