If you have read any of the latest issues of the Globe and Mail, watched the national news on TV or heard any recent press releases from CMHC (the federally regulated mortgage insurance company) you would likely think that we are in a housing “bubble” or that our properties are “over valued.” As always, the clearer explanation is a bit more complex and a bit less “black and white.”
Firstly, much of what you may read and hear about the housing market not only refers to the largest markets in Canada but also the ones that are the most volatile such as Toronto,Vancouver and Calgary. These are the markets that drive government policies as it relates to the housing market and influence campaign promises at election time.
Secondly, our local Winnipeg market which has been a very strong seller’s market over approximately the last ten years would still not be considered “volatile.” Even after a strong decade of price appreciation we in Winnipeg still have some of the most affordable housing in the country. Try finding a 3 bedroom home with a garage in good condition and in a quiet safe area for $300,000 in Vancouver or Toronto and you will see what I mean.
Thirdly, even within Winnipeg itself,different area and types of properties will experience different levels of demand. Homes in the newest areas of the city, the south west corner for example, where builders have built large numbers of homes in the $400+ range, will take longer to appreciate in price and sell as there is a clear “over supply” at the present time.
Condos also may experience similar conditions as supply has also increased dramatically and has affected both appreciation and “days in market” for those owners who are selling.
Interestingly, homes in some of the older and more established areas of the city such as Wolseley, River Heights, St.James, Ft.Garry, Norwood,and the St.Vital area are still attracting strong interest and in some cases multiple bids from waiting homebuyers.
Recently the Canadian Real Estate Association ran an ad campaign with the slogan “All markets are local.” As it relates to deciphering the National housing market, I couldn’t agree more.
Wonder what your property is worth in today’s market?
Find out at www.2015WpgHomeValues.com
Do you have a friend or family member in another city who is curious?
Have them check out www.2015CanadianHomeValues.com
Watch for my next blog: Why is my city property assessment different from its market value?