Winnipeg, MB

Move or Renovate?

Thank you everyone that showed up and made our Belize school fundraiser a super success!! We managed to raise almost $1200.00 for a school in Calcutta Belize. Thank you for the people that donated prices, all the people that came to the park to participate in our activities and a special thanks to the close friends that helped with setup and serving and most of all Barbara-Ann who was a fabulous help. Last but not least the band "Oh mother where art though" were wonderful!! Thank you all of the kind generous people.

John S

Are you a User or an Investor? There are two main types of commercial customers:

1. The Users who are seeking a property that will house their business. Their main concerns are location, visibility and the prestige that will accompany a particular property or location. Buying decisions will be affected by the buildings' age, or newness of the property, the neighborhood, safety for staff, security, lighting, office size, window placements, and primarily whether the property enhances business opportunities. Their buying decisions are largely focused on the question "'What's in it for my business" and whether this property will offer the opportunity for growth without excessive increases in overhead costs.

2. The Investors who are motivated by three slightly different factors of influence; What is the rate of return they can expect to receive on their capital investment? How secure is the rate of return, is it guaranteed, or reliable? What are the risks or chance of losing the investment? And most importantly what is the potential for capital growth? Investors often have a desired rate of return established prior to beginning their property search. While attractive settings and decors may be desirable, they are not at the top of the list for Investors.

A User may be 'Buying an Income Dream', whereas an Investor is 'Buying an Income Stream'

Well, this year appears to be started off with a bang here in Winnipeg! While total sales are down by 8%, the total dollar volume for sales has set a new record for January.

The real success story this year appears to be a 43% increase in condominium sales. This is a welcome change as they seemed to be a little more sluggish last year than was hoped. The number of listings has also increased this year from last year by 13%.

Only 26 % of homes were sold at or above list price this January. This is quite a change from the busy market that Winnipeggers were seeing most of the last few years. It just goes to show that even in a slowing market, if your house is exceptional, you have a good chance of getting what you are asking for and maybe even more this year.

As you can see from the below chart, the most active section of the market is still the $100,000 - $199,000 market with 45% of the total sales.

Winnipeg remains a very affordable city to live in with a strong economy and job market. Our rental vacancies are still among the lowest in Canada, which is putting some upward pressure on property values and rents.

Statistics were provided by Winnipeg Real Estate Association.

Winnipeg, Manitoba Outlook for 2009

Winnipeg remains one of the hottest markets in the country for residential real estate, reporting record setting sales for the first nine months of the year.

The market, however, pulled back in the fourth quarter due to rising economic concerns. As a result, an estimated 12,900 homes are expected to change hands in Winnipeg by year-end, a modest decrease from peak levels logged in 2007.

Housing inventory was relatively tight through 2008. With a limited supply of listings for most of the year, values smashed all previous records with the average price up 22 per cent over one year ago from $170,502 to $207,882. Many purchasers experienced frustration with bidding wars but there were fewer than in 2007.

Multiple offers are still occurring and will continue in isolated situations but not nearly as frequently.

Inventory has increased in the last quarter and what was previously a seller's market has become more balanced. As a result, average time on market required to sell a home will increase from 29 days in 2008, to 35 days or more in 2009.

Spurred by move-up buyers looking for bigger homes and better amenities, the most active price range has been in the mid-range from $160,000 to $199,000. First-timers, including new immigrants and children of baby boomers, fuelled activity in the $130,000 to $159,000 range. With even greater demand from retirees, the condominium market is playing a bigger role than ever before. New buildings geared to retirees are underway in The Forks and on Waterfront Drive.

More affordable warehouse conversions are also springing up, thanks to incentives from the city to invigorate the downtown core. Luxury homes were also coveted in 2008, with a record number of $1million+ homes changing hands. Despite consumer uncertainty created by volatility in the stock markets and the global economic crisis, Winnipeg's local economy remains healthy. New home construction is expected to continue at a breakneck pace with 5,200 new units projected. Net migration will be a dominant factor driving demand. International migration will be among the highest levels on record, owing to Manitoba's successful Provincial Nominee Program. With one of the best employment rates in Canada, the loss of migrants from Manitoba to other provinces will also remain

low by historical standards. A robust labour market continues to be both a sign and source of vigour for the Manitoba economy. The province is benefiting from a softening Canadian dollar and high commodity prices for grains and base metals supporting provincial income growth.

Th e market for 2009 will be balanced as slow, steady growth continues. Inventory levels are expected to

increase by 10-to-15 per cent over 2008. Values will remain stable with minimal increases. The average

selling price is forecast to appreciate two per cent to $212,000 by year-end. The number of homes due to change hands is forecast to match 2008 levels.

Remax Western Canada Hosing Outlook 2009