I get asked daily what is driving this Winnipeg Real Estate Market? Today, I will give you my analysis as your local Winnipeg Realtor to let you know just what is driving this market!
#WinnipegRealEstate #MovingToWinnipeg #LivingInWinnipeg
So let’s start with one of the most basic aspects driving this market – and its back to your Economics 101 course that taught you ALL about supply and demand. When a market is in oversupply, it causes prices on goods to drop, when it is undersupplied, we see prices go up. When supply and demand are equal, I believe they called it at equilibrium, and prices stay relatively the same. What we are seeing in Winnipeg is a serious undersupply of property. This is driven by a few factors. When you look at the annual net migration for Manitoba, you will notice that our province grows every year – usually at a rate of around 10,000 people per year. With the exception of 2020, where we actually had negative net migration of approximately 900 people. However, in Manitoba in any given year we have not been seeing the number of housing starts we should be to accommodate this net migration. A lot of this is compounded by the fact that many residents are taking advantage of the low interest rates and buying secondary properties – either as vacation property – or some are purchasing investment properties.
That brings me to my next point – the low interest rates. Anytime you see interest rates hit historic lows, there are going to be people looking to enter the market to take advantage of those low borrowing costs. As I said above, that made things very attractive for investors – where the interest rates are so low that carrying a few mortgages was not as concerning. But it attracted many others. Potential buyers, who were looking at the cost of renting vs. buying started to find that a monthly mortgage payment might be more affordable than paying rent. The purchasing power was much higher given the low interest rates.
Now combine that with a market in the first quarter of 2020 that was uneasy or leery of COVID. We didn’t know what COVID was yet or how it would impact people it affected. At that time, we weren’t even that certain about how transmissible it was, or what the long-term implications were. It was scary stuff that nobody wanted to be at risk for. Remember how quiet the streets were if you drove anywhere? It was a ghost town out there -nobody wanted to leave the comfort of their house. And many sellers, selling their houses also didn’t want people in their homes. Understandably so! We saw many people remove their listings from the market. We also saw many people that had intended to list their homes that spring choose to hold off and see what might happen. There was a severe shortage of resale options entering the market in 2020 and that carried on into 2021 (and is true even today).
Another factor to consider. Many people that DO want to sell their homes will oftentimes want to find something to buy, too. The fact that it has become so difficult to purchase a home has caused many of these potential sellers to tap the brakes. It really is a vicious cycle!
Another thing we forget, is that our lifestyles changed. What became important during COVID was not the proximity to work. Not when you are working remotely. What people started valuing were larger yard spaces, room for a home office, room for a home gym. The commute doesn’t matter when there is no commute.
One final factor we have to look at is the length of time it now takes to build a home as well. Pre-COVID, where we weren’t seeing supply-chain issues, it wasn’t uncommon to hear of build times of 6-8 months. However, as COVID continued and there were shortages in both supply and labour, we now started to see longer and longer wait times for building.
Many people think that us Realtors are just loving and thriving in this market – but trust me, the majority of Realtors are NOT! You have to remember that most Realtors work with buyers and sellers alike, and we ride that same emotional roller coaster with our buyers when they are getting outbid. It isn’t fun for anyone.
While I list more homes than the average agent, I still don’t love it. The desperation to get into a house is absolutely devastating particularly when we are reading letters that come with the offers. The majority of Realtors that I talk to say they would do anything for just a more balanced market – and I agree with them.
Anyways, that’s where we are now and what I’ve seen that has driven the pricing. What do you think?
👉 Follow us for additional content and shenanigans here:
✨ Facebook: [ Ссылка ]
✨ Instagram: [ Ссылка ]
✨ TikTok: [ Ссылка ]
📧 Jennifer@JenniferQueen.com
📍 The Jennifer Queen Team and RE/MAX Professionals
📱 (204) 797-7945
🌐 www.JenniferQueen.com
