A new survey is showing the impact of COVID-19 on Winnipeg’s real estate market, indicating that if the virus isn’t contained soon, there will be a drop in year-over-year home prices.
On Tuesday, Royal LePage released its House Price Survey and Market Survey Forecast. It found that Winnipeg saw modest gains across all property types with the average price of a home coming in at $303,523 in the first quarter of 2020 – a year-over-year increase of 1.8 per cent.
“While no major urban city will be able to avoid the negative economic impact of COVID-19, Winnipeg is well-positioned to remain relatively stable through the pandemic due to our strong underlying market fundamentals,” said Michael Froese, a broker and manager for Royal LePage Prime Real Estate, in a news release.
“We are resilient.”
According to Royal LePage, if the virus is contained in the second quarter of the year, it’s predicting average home prices will stay the same at the end of this year, compared to home prices at the end of 2019 at $310,900. But, it said, if business activity doesn’t resume until late summer, then Winnipeg could experience a 2 per cent decrease in year-over-year home prices.
The survey found both bungalows and condos saw year-over-year increases of 2.3 per cent in the first quarter of 2020, putting them at $292,532 and $241,048, respectively. As for two-storey homes in Winnipeg, there was a 1.3 year-over-year increase to $326,627.
“Winnipeg had an excellent first quarter. Sales were up 12 per cent in the first quarter compared to 2019. Demand was high, and consumer confidence was soaring,” said Froese.
“Understandably, activity has slowed at the tail end of March as Manitobans’ priorities have shifted to help flatten the curve.”