As we all get caught up in the summer Olympics and cheer on our Canadians, it can be overwhelming how many different sports there are to follow. Unless you are really paying attention and glued to your television set, you are bound to miss some events. Of course, there are always going to be higher drawing attractions, such as swimming, gymnastics and track and field but how can you not marvel at the incredible beach volleyball stadium right on Copocabana Beach? There’s plenty to watch during the world’s biggest multi-sports spectacle.
So how does this relate to Winnipeg’s MLS® market and its activity which happens every day, not once every two years if you include the winter Olympics? It has to do with the different property types sold on MLS®. And like the multitude of Olympic sporting events where some will only get highlighted on the ticker tape result bar at the bottom of the television screen, the less active MLS® property types — in terms of sales and dollar volume activity — share somewhat similar exposure as the main events that hog the Olympic spotlight.
No better example exists this year than single-family detached homes. One reason why this most sought-after property type — one of the symbols of the Canadian dream — is getting even more attention this year is its meteoric rise in prices in Canadian housing markets, such as Vancouver and Toronto. These markets are both on fire with single-family home prices reaching unfathomable levels. July 2016 in Toronto saw detached-home prices sell on average for $1,202,753, a price increase of 21 per cent. Outside the city of Toronto in the 905 area code, house prices went up 22 per cent to $888,565. In Metro Vancouver, the average single-detached benchmark house price in July 2016 went up 38 per cent from July 2015 to $1,578,300.
As for market share activity in July 2016, single-family homes represented 46 per cent of total MLS® sales in Toronto. In Vancouver, this coveted property type only captured a 33 per cent market share, while condominium sales were well out front at 50 per cent of total sales.
Should this be a surprise with the benchmark average price being $510,600 or over $1 million less in price?
WinnipegREALTORS® market share in July 2016 for detached homes was 73 per cent, with the average price coming in at $302,073. One out of every four, or 25 per cent, of the sales happened outside the city of Winnipeg. Condominiums are well back in market share at only 12 per cent of total MLS® sales. The average condo sale price was $231,907.
One of the take-aways is that single-family homes remain highly sought after similar to a ticket to the Olympic 100 metre final with Usain Bolt ready to strike again. Where you are seeing clear separation in sales activity between Canadian housing markets is on pricing. In Vancouver, detached sales are easily supplanted now by condominiums. In fact, in July 2016, Winnipeg’s 987 detached home sales were not far off Greater Vancouver’s 1,077 sales.
The other take-away is let’s not overlook how important lesser profile property types are to those involved. For someone owning a side-by-side townhouse or a duplex, they are very much engaged in wanting to know all the metrics relating to their property type. This is no different than a trainer and coach tracking and measuring their athlete’s progress.
These much smaller market share MLS® property types are enjoying a strong year relative to the same period in 2015. Many are seeing double-digit increases in sales. For example, townhouses are up 93 per cent, mobile homes have increased 25 per cent and resort properties 12 per cent.
Enjoy the Olympics and its many events. At the same time, remember there are other MLS® property types besides single-family homes and condominiums to follow. Call your REALTOR® for more information.