Sizzling real estate market
There has been a sustained boom in the Manitoba real estate market three years now, without signs of abatement, states Winnipeg Real Estate Board (WREB) spokesman Peter Squire. The WREB’s sales through its Multiple Listing Service (MLS) have been breaking records every month of this year, passing the $1 billion level early August, the first time it has reached that level so early in the year in the board’s 100-year history.
“There have been double-digit price increases during the last three years,” continues Squire: “But I don’t know if we’ve ever had as strong a year as this one. It is said that interest rates may go up in the fall, but we’ve heard that before. We expect the boom to be sustained well into 2006.
The market’s strength, and the heightened exposure afforded by the MLS website, may be attested to by two indices: the average days on the market fell to 21 this year, from 40-50 in previous years; also, the sales price to list price ratio is reaching 100 per cent, up from say 95 per cent in previous years, according to Squire.
The market is booming across the country but, due to having the lowest built-up inventory among Canadian cities, Winnipeg is right up there at the top. This is having a considerable multiplier effect on building, renovations, furniture sales and the economy in general.
The Canada Mortgage and Housing Corporation predicts that Manitoba will be the only province to increase housing construction this year and the next. Population growth is still ahead of growth in housing stock, generating pent-up demand. Other factors favouring home purchases in Manitoba include relatively low interest rates and unemployment, consumer confidence and a strong economy.
The luxury home segment is outselling low-cost houses for the first time.
Rochelle Blumenthal, a retired library technician, sold her family cottage to her daughter and son-in-law last year. “The deal took about six months to crystallize and, during that time, the cottage appreciated in value 20 per cent more than the price I had agreed to sell it for,” she recalls.
Manitoba’s net population inflow of 5000 during the last year is primarily due to immigration. Many an immigrant makes immediate contributions to the economy via purchases of a car and home. Population growth leads, in turn, to growth in retail sales as well as tax revenues.
This has led to a construction boom as well. Private investors Joe Paletta of the Paletta Group and Joe Bova of Man-Shield Construction are planning to turn the abandoned Canada Packers site at St. Boniface into a $70 billion recreation complex, the biggest in the country. They say things are progressing slowly in the right direction, but are reluctant to comment at this preliminary stage.
The athletic park would include indoor pitches, 18 outdoor soccer fields, bike paths, a skateboarding park, golf links, rock-climbing walls, speed-skating ovals and hockey rinks.
A local landscape architecture firm has made concept drawings, and federal funding for the 171 acres may be in the offing in the fall.
Ron Evans, grand chief of the Assembly of Manitoba Chiefs, has expressed, meanwhile, an interest in building an aboriginal legislative assembly and training centre on the urban reserve he would like to see on part of the site.
[An edited version of this article appeared in Business Edge on September 29 2005.]
“There have been double-digit price increases during the last three years,” continues Squire: “But I don’t know if we’ve ever had as strong a year as this one. It is said that interest rates may go up in the fall, but we’ve heard that before. We expect the boom to be sustained well into 2006.
The market’s strength, and the heightened exposure afforded by the MLS website, may be attested to by two indices: the average days on the market fell to 21 this year, from 40-50 in previous years; also, the sales price to list price ratio is reaching 100 per cent, up from say 95 per cent in previous years, according to Squire.
The market is booming across the country but, due to having the lowest built-up inventory among Canadian cities, Winnipeg is right up there at the top. This is having a considerable multiplier effect on building, renovations, furniture sales and the economy in general.
The Canada Mortgage and Housing Corporation predicts that Manitoba will be the only province to increase housing construction this year and the next. Population growth is still ahead of growth in housing stock, generating pent-up demand. Other factors favouring home purchases in Manitoba include relatively low interest rates and unemployment, consumer confidence and a strong economy.
The luxury home segment is outselling low-cost houses for the first time.
Rochelle Blumenthal, a retired library technician, sold her family cottage to her daughter and son-in-law last year. “The deal took about six months to crystallize and, during that time, the cottage appreciated in value 20 per cent more than the price I had agreed to sell it for,” she recalls.
Manitoba’s net population inflow of 5000 during the last year is primarily due to immigration. Many an immigrant makes immediate contributions to the economy via purchases of a car and home. Population growth leads, in turn, to growth in retail sales as well as tax revenues.
This has led to a construction boom as well. Private investors Joe Paletta of the Paletta Group and Joe Bova of Man-Shield Construction are planning to turn the abandoned Canada Packers site at St. Boniface into a $70 billion recreation complex, the biggest in the country. They say things are progressing slowly in the right direction, but are reluctant to comment at this preliminary stage.
The athletic park would include indoor pitches, 18 outdoor soccer fields, bike paths, a skateboarding park, golf links, rock-climbing walls, speed-skating ovals and hockey rinks.
A local landscape architecture firm has made concept drawings, and federal funding for the 171 acres may be in the offing in the fall.
Ron Evans, grand chief of the Assembly of Manitoba Chiefs, has expressed, meanwhile, an interest in building an aboriginal legislative assembly and training centre on the urban reserve he would like to see on part of the site.
[An edited version of this article appeared in Business Edge on September 29 2005.]
