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Warmer weather reheats housing market
Jul 11, 2013

 

A solid MLS® sales performance in June finished off a strong second quarter result and brought year-to-date sales closer to the downside risk of a four per cent drop factored into the annual 2013 MLS® market forecast. 
No major road blocks were encountered to conclude a month ranked in the second tier of Junes that edged up to the 1,500 sales level, but could not match sales in 2007, 2008 and 2011. Nevertheless, June sales this year are only off the best June ever by five per cent. June dollar volume set a new record of $392 million for the month, which helped to bring year-to-date dollar volume within less than two per cent of last year’s dollar volume total. 
New MLS® listings rose nine per cent over June last year, leaving an inventory going into July of close to 4,000 units available for sale. You have to go back to the 1990s to find this much MLS® listing supply.
June MLS® unit sales were virtually even (1,480/1,487), while dollar volume was up six per cent ($392.4 million/$369.4 million) when compared to the same month last year. Year-to-date MLS® unit sales were down seven per  cent (6,431/6,921), while dollar volume  dropped off by less than two per cent ($1.68 billion/$1.71 billion) in comparison to the same period last year.
“If a cooler, later spring tempered the multi-year escalating Winnipeg market, our recent weather has reheated sales to equal the June 2012 statistic” said Richard Dettman, president of WinnipegREALTORS®. “Last year was one of the best years on record and repeating this mark is no mean feat.
“Looking ahead, if we can convert or turn at least 35 per cent of our active listings to sales, which is a reasonable expectation given past market performance, then third quarter sales will be off to a very good start,” he added.  “Realistic pricing is an important element in attaining a high listing-to-sale conversion rate. It really is a matter of our 1,600 REALTORS® educating both buyers and sellers as to the current market conditions.” 
An interesting observation to make after the first half of 2013 is just how well condominium sales are doing. While off to a slow start at the beginning of the year, like other MLS® property types, condominium sales are now up 10 per cent over last year and are enjoying a better conversion of listings to sales than residential-
detached properties. Listings have increased 18 per cent. June condominium sales were not only up 11 per cent, but they clearly showed an upward swing in price range movement with 55 per cent of all sales selling above $200,000, while last June it was only 38 per cent. 
The most active residential-detached price range in June was $250,000 to $299,999 with 23 per cent of total sales. The $200,000 to $249,999 price range was next busiest at 18 per cent. Condominium sales were most active in the $150,000 to $199,999 price range with 31 per cent of total sales. Another 19 per cent of condominium sales fell within the $200,000 to $249,999 price range.
The average time on the market for residential-detached sales was 22 days, the same pace as last month and two days quicker than June 2012. Not surprisingly, the most active price range of $250,000 to $299,999 had the shortest period on the market at only 16 days. The average time on the market for condominium sales was 36 days, five days ahead of last month and nine days behind June 2012.