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Fall Market Report – 2020
How has Covid-19 affected the real estate market?
We have been answering this question since COVID-19 entered all of our worlds, and it’s a fair one. Every industry has a different experience, and our local real estate industry has been spared many of the woes that friends in other industries have not.
In the local Southern Manitoba market, when COVID arrived in March, the normal Spring incline of new listings and sales significantly slowed down and we experienced a few weeks of very low activity. However, as we entered June, we felt things pick back up as more and more people were eager to sell or buy before the next school year and the cold hit – in a market that has already demonstrated over the last few years to be hot. As seen in the chart below, local sales this year were similar to 2019 even with the COVID interruption.
Stats are provided by the MLS (Multiple Listing Service). All statistics are based on all MLS listed Residential and Condominium sales.
In the overall Canadian market, it was several months of little activity as the majority of the country did their best to self-quarantine. And then July hit.
In July and August, the Canadian Real Estate Association (CREA), which represents 130,000 Realtors from across Canada, released it’s statistics for the Canadian market. First, July set major records. And then August topped July, with more home sales across Canada than any other month in recorded history. The sales that would have happened in Spring have burst out of the gate in summer and continue now in fall – as some predict more quarantining in the winter months. Not only that, but as more and more people are working from home, many in big cities are moving away from downtown and out where there’s more space.
- The average sale price in Canada was $571,500 – up 14% from July 2019
- 30% more home sales than July 2019
- The average sale price in Canada was $586,000 – up 18.5% from August 2019
- 33% more home sales than August 2019
It’s very interesting to note that the inventory level, which is the total amount of homes available for sale, has not been this low in Canada in 16 years – a huge contributor to why Canadian resale activity and average prices have not just jumped back up to normal levels, but to new record highs.
Economists say there is plenty of reasons to doubt that this pace can be sustained. Time will tell as we wait and see what the spring market brings.
However as we zoom back in to our local market, our average sale price in the City of Winkler alone – $270,000 from Jan.1st to September 30th – demonstrates that the local affordability is still very good. The average sale price is up 9% in Winkler, 15% in Morden and 10% in the Southern Manitoba area.
The low inventory of homes on the market due to COVID-19 and other factors has contributed to the recent urgency on homes selling quickly – many with multiple offers – especially in the most desired price range of $150,000 – $270,000. This is great news for homeowners as the equity in their homes is increasing.
The strong housing demand is also a compliment to our local community and employers, that are continuing to draw many newcomers to the area. As a final note, it is good to see the recent strong sales for residential lots, leading us to expect a strong construction market and many new homes in 2021.