As was the case during the 1997 “Flood of the Century,” the local housing market dipped noticeably in April this year due to widespread flooding.
“Protecting one’s property or helping another save theirs will always take precedence over marketing your home, which includes our REALTOR® members who were in many instances involved in flood-related efforts,” said WinnipegREALTORS president Deborah Goodfellow.
But it was really a tale of two entirely different markets. In the first half of
the month, MLS® dropped 29 per cent and dollar volume sales were down
25 per cent when compared to April 2008.
In the second half of the month, sales and dollar volume were just down two per cent compared to April last year.
“Considering where we started in April and how we finished the month,
I believe the MLS® market had a healthy rebound which gives us hope going
into May that our traditionally strong spring market has finally arrived,” said Goodfellow.
“You also have to keep in mind that we are comparing this April to the best April (2008) on record when MLS® sales for the month surpassed 1,300 units, a figure never before attained,” she added.
For the entire month, MLS® sales dropped 15 per cent and dollar volume sales fell 12 per cent when compared to the same month last year.
Yet, April was the second-best month on record for dollar volume sales and unit sales were among the top-10 for the month.
Goodfellow said a resurgence in listings and sales entering May is being helped by low mortgage rates.
“When you look at mortgage rates today, they are lower than most of us have seen in our lifetime,” added Daryl Harris, the Manitoba director of the Canadian Association of Accredited Mortgage
“The Bank of Canada has records
going back to 1950 on average fixed-rate and long-term mortgage rates,” he added, “and the best rate was five per cent in early 1950.
“Discounted five-year rates available today through accredited mortgage professionals are under four per cent, so it really is an opportune time to take advantage of such favourable mortgage
The most active segment of the April residential-detached housing market was in the $150,000 to $199,999 price range, which accounted for 24 per cent of all sales. Next was the $200,000 to $249,999 price range with 21 per cent of total sales.
In addition, 45 per cent of all residential-detached homes sold at or above the MLS® list price.
Homes spent an average of 31 days on the market in April, one day behind the previous month and nine days off the fast pace set in April 2008.