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Winnipeg Real Estate Market Starts to Crack...





WINNIPEG – The city’s home sales market suffered a major slow down summer 2014...

Home sales in the city dropped 12.1 per cent in August compared to the same month in 2013, according to figures released Monday by the Canadian Real Estate Association. There were 1136 sales in August 2014 compared to 1292 in August 2013.

Meanwhile the number of houses listed on MLS in Winnipeg took a big jump: there were 2,106 new listings in August, a 22 per cent increase over the 10-year average.

“It’s more of a buyers’ market than a sellers’ market,” says Peter Squire of Winnipeg Realtors. “Buyers are in a better position than they have been in years, and aren’t feeling same sense of urgency to buy.”

The significant drop in sales activity resulted in fewer dollars changing hands. Dollar volume in Winnipeg in August 2014 was $301.2 million, compared to $326.9 million the year before, a staggering drop of $26 Million.

Bidding wars are becoming less common: fewer than one in five residential detached sales went for above list price.

Winnipeg isn't the only metropolitan area in Canada to see double-digit percentage drops in home sales. Activity in Sudbury ON, Halifax NS, and the Saguenay region of Quebec and Toronto also fell.

Here is a handy summary:

Realty Market Status
– Pace of Sales = Over Sold
– Decelerating Current Pace vs Peak Pace 89%
– Decline Year End 2015 Projection = 20%
– 25,705 drop in sales projected in 2014
– Year to Date /Fail to Sale Ratio 51.3%
–  November Fail to Sale Ratio 49.9%
–  Buyer Risk = EXTREME
–  Seller Risk = Low
– 12 month Price Prediction = Negative

While summer home sales in Winnipeg were very disappointing, Winnipeg Realtors continue to pump the spin to media and in their weekly Real Estate News publication.

Here are a few things about the market you won’t see published, that any potential buyer or seller should know.

•Detached home sales across Canada have declined.

•The real estate board once again secretly revised its 'year-ago' statistics, and has overstated sales. Surprise.

•Since last April there’s been negative growth in average prices.

•In fact the average price of a Winnipeg property last month is less than the average price was back in the start of summer 2014.

•The average home price is dropping by $10,000 less each month.

•After land transfer closing costs and commission, someone who bought a year ago and sold today has lost money – about $5,000 . However, this was the spin that we read in the paper: “According to the Real Estate Board today, the average price surged 7.4 per cent. The MLS benchmark price rose even faster, by 7.7 per cent.”

Of course, the housing market is still attracting enough fools to engender bidding wars in the hot zone ($700,000 to $ 1 million). Beaters like the one I showed you in a past report on Euclid Ave. are still changing hands far beyond the homes true value.

Canadians are still adding $10 billion a month in net new mortgage debt. And the banks are still handing out home loans like candy at the lowest interest rates in history, while the financially illiterate masses continue to swoon under the realtors’ spell.

This will NOT END WELL...

Kevin

Winnipeg Report

6 comments:

  1. Anonymous says:

    I try and explain to people what is happening and they look at me like I'm from another planet. Most people I know honestly believe that their house value will continue to go up forever. Can you say MORONS? When the decline accelerates, the only people who will survive are those with either no mortgage, or those who purchased in the 1990's.

  1. Alex_G says:

    Man I warned my Dad and my sister NOT to buy a house last year. Both did. My Dad spent over $600,000 and my sister (who now has a baby) spent $550,000. They are both heavily mortgaged. I stayed in my house that I bought back in 1997, and will be mortgage free in 2 years. Only reason I'm not mortgage free now is I built a big garage /shop on my property and gave up the lease on the shop I was renting. I'm getting ready for the big collapse, too bad the sheeple can't see what's happening right in front of their own eyes. Thanks for the excellent article Kevin, keep 'em commin.

  1. Johnny Rotten says:

    Real Estate Agents & Banks are screwing everybody 10 ways to Sunday. I bought my home in 1994 and it's long paid off. I also have no debt, but I still realize that when the SHTF we're all screwed because the Governments will take us to war.

  1. Anonymous says:

    The Real Estate Agents are totally to blame here 100%. Back in the 1990's, when houses cost reasonable amounts, we met the owners. Heck I even had tea with the old lady I bought my first house with! You'd chat about what you wanted to get and spend and talk through making an agreement. the Real Estate Agent would then write up the paperwork.

    Now, it's a friggin auction. You NEVER meet the home owners and you wind up having to "make an offer" on a set day & time. Listen, it is NO LONGER a home sale it's an "Auction."

    So, no wonder the house prices have been going through the bloody ceiling over the last decade. the agents have hi-jacked the entire process and screwed it over so they benefit from these STUPID high home prices.

    The agents and the Real Estate board, the MLS... all of them should be thrown in prison for what they've done.

    A Real Estate Agent is pretty much the fucking lowest, piece of shit there is. They are total SCUM.

  1. Jack E. Smoith says:

    The Banks are to Blame as well. Giving out money to suckers like it was candy. You'd have to be a total ASS HOLE to work as a bank "Mortgage Specialist" or whatever... Fucking BullShit artist is more like it.

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