New construction continues to slow in Winnipeg.
The Winnipeg real estate industry has seen a significant pullback in the building of new homes that is predicted to continue through 2017 and possibly even into 2018. The number of starts in September of 2016 is barely over half the number from September of 2015. The drop from 636 starts to 348 starts year-over-year for the month of September shows just how substantial this pullback is. Since it hit its highest point in 2013, the inventory of existing homes in Winnipeg remains high, so builders aren’t seeing a need for as many new builds.
There are still new homes coming onto the market in Winnipeg, with 306 home that were under construction being completed in September. The decrease in new home construction, however, has contributed to the rise in the sale of existing homes.
So far, the market for existing homes has stayed relatively stable since around the middle of 2009. That trend is expected to change in the near future, with a slight increase of an average of 300 additional sales per quarter.
Following a year of improved employment rates and personal income, Winnipeg mortgage rates have also seen improvement recently. Mortgage rates are predicted to rise slightly going into the beginning of 2017 though so now is the time to buy!
The price range of $250,000 to $299,999 was the most active range for residential homes in September of 2016 receiving 21 per cent of total sales. The price range of $200,000 to $249,999 came in second with 17 per cent of the total sales for September. Of the total sales made in Winnipeg, $1,598,327 was the highest purchase price and $21,000 was the lowest. Homes sold 5 days faster in September of this year compared to the same month of last year, leaving most listing on the market for only 30 days.
As your trusted Winnipeg mortgage broker, I know that with the heightened demand for homes and the shortened time homes are on staying on the market, we need to act fast to get you into your dream home! All of these factors, including a steadily improving economy, allow me to offer my clients competitive rates on a Winnipeg mortgage.
If you have any questions for us at Ideal Mortgage Solutions or would like some more information or mortgage advice, please feel free to call or email us today! We look forward to hearing from you!