Winnipeg to continue as seller’s market in 2021, prices to increase 3%
Winnipeg real estate is likely to continue as a seller’s market in 2021, with an uptick of activity anticipated as many home sellers that were initially hesitant to sell during the pandemic are reassessing their financial situation and are anticipated to decide on up or downsizing in the new year. The average sales price in Winnipeg increased by 4% to $283,652 in 2020 (Jan. 1 – Oct.31), compared to $271,652 in 2019 (Jan. 1 – Dec. 31). The RE/MAX Outlook for Winnipeg real estate in 2021 is an increase of 3% in average price to approximately $291,976.16.
Who’s Driving Demand for Winnipeg Real Estate?
Move-over buyers are currently driving demand in the Winnipeg real estate market, which is expected to continue into 2021. The most popular property type with move-over buyers are single-detached homes.
First-time homebuyers in Winnipeg are typically young couples looking for single-detached homes. These properties range in price from $300,00 to $400,00. Bidding wars have continued to impact both first-time homebuyers as well as move-up buyers from entering the market. Moving into 2021, it may be easier for first-time homebuyers to enter the market, as people will not be in such a panic to move as they were at the beginning of the pandemic.
Move-up buyers in the Winnipeg housing market are typically families, and many have decided to wait on entering the market if their current home continues to meet their needs. This results in a lack of urgency to move.
The condominium market in Winnipeg is most popular with single homebuyers and young couples, with the average price for a condominium in Winnipeg being $241,785. The current condo market in Winnipeg is better than it has been in a while but is still slower than the detached home market. This is expected to continue into 2021.
Winnipeg’s luxury market is currently driven by move-up buyers, with the average starting price for a luxury home in Winnipeg being $500,000. Due to COVID-19, it is taking a little longer for luxury homes to sell, but it is hopeful that this is only a short-term impact on the luxury market in Winnipeg.
Winnipeg’s Hottest Neighbourhoods
Winnipeg’s top-selling neighbourhoods in 2020 were River Heights, St. James and Cresentwood. These neighbourhoods are expected to continue to be popular in 2021 as they offer large properties with more outdoor space and good price points.
Winnipeg New-Home Construction
It is believed that Winnipeg’s new-home construction sales have increased as the gap has been bridged in terms of price point between what resale is being bid up to and what you can purchase a new home for. The current number of homes being constructed in Winnipeg is sufficient to meet the current demand.
Canadian Housing Market in 2021
Canadians are on the move. RE/MAX isn’t calling this an “exodus,” but the re-location trend across the Canadian housing market is real, and it’s just one focus of the RE/MAX 2021 Housing Market Outlook Report. RE/MAX Canada anticipates healthy housing price growth at the national level, with move-up and move-over buyers continuing to drive activity in many regions across the Canadian housing market. An ongoing and widespread housing supply shortage is likely to continue, presenting challenges for homebuyers and putting upward pressure on prices.
Due to these factors, the 2021 RE/MAX 2021 outlook for average residential prices is an estimate of +4% to +6% nation-wide. Here’s the regional break-down:
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Additional report findings include:
- 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021
- 52% of Canadians believe real estate will remain one of the best investment options in 2021
“Despite the tragic impacts of the pandemic, our optimism in the strength of Canada’s housing market has always remained,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “While we’ve seen a significant shift in buyer preferences this year, we believe factors such as the supply issue, pent-up demand and historically lower interest rates will continue to fuel activity in 2021.”
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