Winnipeg Home Prices See Moderate Increase in the Fourth Quarter of 2018

Healthy local economy reflected in a steady increase in home prices

WINNIPEG, Jan. 11, 2019 /CNW/ - According to the Royal LePage House Price Survey¹ released today, the aggregate price of a home in Winnipeg saw a moderate increase in the fourth quarter of 2018, rising 3.1 per cent year-over-year to $305,763.

When broken out by housing type, the median price of a two-storey home increased 4.4 per cent year-over-year to $328,859. During the same period, the median price of a bungalow increased 3.2 per cent year-over-year to $297,059. Meanwhile, the median price of a condominium decreased 5.8 per cent year-over-year to $230,197.

"The consistent and healthy growth of the local economy is reflected in the continued home price gains seen in Winnipeg's detached home segment," said Michael Froese, managing partner, Royal LePage Prime Real Estate. "There are a variety of external macroeconomic factors impacting the region, from fluctuation in the political climate, to changes in the regulatory environment, to instability in the commodities market. However, population growth and a strong local economy have played a significant role to Winnipeg's housing market price gains.

"Younger millennials and baby boomers are very active across Winnipeg's housing market," added Froese. "While in other regions of the country, the millennial population of homebuyers is in their late 20s or early 30s, we have seen a significant increase in the number of homebuyers in their early 20s. At the other end of the spectrum, baby boomers continue to dominate the real estate market as they purchase new properties in their retirement years."

Froese added that a steady influx of immigrants is also increasing housing demand, as high-skilled workers continue to come into the region to live and invest.

Nationally, year-over-year home prices made healthy gains in many regions across Canada in the fourth quarter of 2018. The Royal LePage National House Price Composite, compiled from proprietary property data in 63 of the nation's largest real estate markets, showed that the price of a home in Canada increased 4.0 per cent year-over-year to $631,223 in the fourth quarter of 2018. When broken out by housing type, the median price of a two-storey home rose 3.9 per cent year-over-year to $745,007, while the median price of a bungalow climbed 1.5 per cent to $516,950. Condominiums continued to see the highest rate of appreciation nationally when compared to the detached segment, rising 7.2 per cent year-over-year to $447,915.

"The invisible hand that guides our complex economy hit the real estate reset button in 2018 and that is a good thing," said Phil Soper, president and CEO, Royal LePage. "Major market home price inflation through much of the decade had led to dangerous overheating in our most populous regions. Government regulatory intervention and rising interest rates, when combined with property price overshooting, triggered the correctional cycle we find ourselves working through today."

__________________________

¹ Aggregate prices are calculated using a weighted average of the median values of all housing types collected. Data is provided by RPS Real Property Solutions.

SOURCE Royal LePage Real Estate Services

Nick de Pass, Kaiser Lachance Communications, 647.216.5897, [email protected]