Winnipeg Real Estate Market Update January 2021

Tips, News & Advice For Home Buyers, Sellers And Owners
Winnipeg
Real Estate Times
What Buyers Should Do
Right Now to prepare
for the Spring Market!
Winnipeg Market
Update
January 2021
10 Reasons To Use
a Mortgage Broker

MARKET UPDATE - JANUARY 2021
WHAT’S THIS ABOUT?
Welcome to our new and improved
Winnipeg Real Estate market report in
PDF Format.
Hi, I’m Bo Kauffmann of REMAX
performance realty, and welcome to the
most unique real estate report available
today.
New and Improved? Previously, the
segments were organized according to
available listings, sold homes, and
Inventory levels. But if you’re looking
at buying or selling a $300,000 dollar
house, you probably don’t care about
how $750,000 homes are selling.
So we’ve organizes the sections in a way
that makes sense.
First up are the entry level houses,
priced under $250,000.
Up next are houses between 250,000
and 500,000 dollars
T h e t h i r d s e g m e n t f o c u s e s o n
Condominiums under $250,000, and
the final segment looks at all condos
over $250K.
Each price band is fully examined and
reported, with numbers of available
listings, solds over the past month,
inventory levels, average days on
market and more.
Why a PDF? It allows the reader to stay
on a section he or she is most interested
in (as opposed to a video). Plus it
affords the time to examine the
information more closely.
It also allows us to embed the audio
description of what you’re looking at. If
the audio annoys or distracts you,
simply shut it off. The button is located
at the bottom right
c o r n e r o f e a c h
dual-page layout.
Any ads you find
a r e a l s o
i n t e r a c t i v e ,
meaning you can
click on certain
s p o t s a n d g o
d i r e c t l y t o t h e
a d v e r t i s e r s
internet sites. I
only accept ads
from trusted and
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providers.
Finally, if you are
l o o k i n g a t t h i s
report on a small mobile screen, do me a
favor and turn it sideways so you can
take full advantage of the two-page
spreads.
These reports are a labor of love, and I
really would appreciate your feedback,
and any suggestions you might have of
improving them.
And please remember…. Bo Knows Real
Estate.

MARKET UPDATE - JANUARY 2021
Winnipeg
All right. So let's take a look at an
general market overview of
Winnipeg's real estate market.
The first thing we need to look at
is how many houses and condos
are available right now. And the
total number of houses available
in Winnipeg right now is 479. I
believe that's the lowest numbers
in many years that I can
remember.
Compared that to 1100 houses available
last year, same time, similar pictures and
condos. Not quite as extreme. There are
four, 341 condos available right now
compared to five Oh six last year. Same
time next. Let's take a look at how many
houses and condos have sold over the
past month. And the biggest chunk of the
market over 50% of all sales are houses
between two 50 and 500,000.
Those houses in that price range that we
sold 219. The next biggest piece of the pie
is 106 houses under $250,000.
And the smaller slices are the
condo sales still fairly robust,
for a condo market. We've got
condos under a quarter million.
We sold 43 condos over a
quarter million. We sold 34 and
that's all the way up to the
highest price range.
houses we sold between the two 50 and
$500,000 range. That's nearly doubled
our one 24 of last year condos, similar
picture condos under a quarter million.
The 43 we sold in a month to December
is nearly double the 23. We sold the
previous year. And condos over a quarter
million, we sold 34 of those compared to
five. Last year, listings are down, sales
are up. So you can imagine what
happens to the prices, lots of bidding
Wars and increased prices.
Okay. Let's see how those sales
compare against last year. Over
the past month we sold 106
houses under a quarter million,
and that's quite a bit more than the 69
we sold last year. Same time. The 219

10 Reasons To Use A Mortgage Broker
These days, every home or condo buyer
in Winnipeg knows that, at a very
minimum, they need to be preapproved
before shopping for a new
home. But being pre-approved by the
RIGHT lender is just as important. With
almost unlimited choices, between
Banks, Credit Unions, private lenders
and mortgage brokers, whats the best
choice for today's home buyer? Many
are turning to a Mortgage Broker, for a
variety of reasons. Here are some very
important ones to consider:
1. Choice
A mortgage broker has access to
mortgages from a huge range of lenders
– so their clients have by far the best
choice of rates and mortgage options.
With partnerships in a vast network of
over 50 lending institutions, including
banks, credit unions, trusts, national
and regional lenders, and nontraditional
lenders, your broker can help
design the perfect mortgage for you.
2. Independence and
objectivity
A broker actually works for you, not for
any one lender. That kind of objectivity
means that you – the client – are the
focus. They fit the mortgage to the
client, not the other way around.
3. Negotiating power
A broker has negotiating power because
the lenders compete for their business.
You’ll get the best rate for your
situation.
4. Access to rate
promotions
You may not realize it, but there are
sales and promotions in the mortgage
world, too. Lenders often offer special
rate promotions, for example. Your
mortgage broker will know about these
special offers, and whether they might
work in your situation.
5. Expertise
An AMP-designated broker is a
financial specialist. That’s the kind of
expertise you want to guide you through
today’s plentiful lending market. With
35-year amortizations, re-advanceable
mortgages (mortgage combined with a
line of credit), no income
documentation products for the self
employed, credit repair and debt
consolidation solutions, today there are
mortgages for almost any situation. And
your independent mortgage broker
knows them all.
6. A focused specialist
A mortgage is a very significant
financial event. A certified broker is in
only one business, and they do it
exceedingly well. That’s what you want:
someone who’s focused on the
mortgage marketplace and your needs.
cont.’d next page…

Property Insurance - Residential - Condo - Commercial

10 Reasons To Use A Mortgage Broker
7. Rates
9. No cost to you (o.a.c)
Getting a lower rate can potentially
save you thousands of dollars. That’s
why more homeowners are more likely
to call a mortgage broker to check out
their options for their first home loan
and at renewal. Call early; your broker
can usually guarantee an interest rate
for 90-120 days.
8. One credit inquiry
Rate-shopping on your own can
actually be hazardous to your credit.
Every time a lender checks your credit,
the credit bureaus take notice. Too
many inquiries and your credit rating
can weaken, possibly affecting the rate
and terms of your mortgage. Your
certified broker does one inquiry only,
regardless how many lenders you’re
looking at.
As a rule, the winning lender pays
compensation to your mortgage broker
for the services and solution provided.
10. Personal attention
You need a mortgage plan that is a
custom fit for you, and a broker who
keeps in touch with you during your
mortgage years. Keep in mind that their
business is built primarily through
referrals from satisfied customers, so
your positive loan experience is
essential for their ongoing business
growth. Your mortgage is a big decision
and a powerful financial tool.
So if you are in the market for a new
home, or need to re-finance a current
home, consider using a mortgage broker
to get the best deal possible.

HOUSES under $250K
Currently we have 136 available
compared to last month, which was 227.
The most important comparison I feel is
always against the last year, same time
period. So last year, same time we S we
had available 312 houses, median days
on market. I'm just starting to track that
this month. It's the first time I'm
tracking. It was 42 days on market.
Now sold houses under a quarter million
dollars to 106, we sold in December
compares to 142 the previous month,
but it it also compares quite well against
the 69. We sold last year, December.
Inventory days currently are 40 days
compared to 48, the previous month.
But that's way down from 140, the
previous year and inventory days
basically means the lower, the number,
the hotter, the market average salt price
in December in this price range was
185,700 down, slightly from the
previous month and actually down from
about a year ago.
And the average days on market till it
got sold was 29 days, which is quite
reasonable considering it was
December.

HOUSES $250K - $500K
Now let's move on to houses in the
quarter million to half million dollar
range. We have 195 available right now
compared to 306, the previous month
and way down from last year's 521. And
the average days, median days on
market is 37.
I am going to track that over the next
next few months. Sold houses in this
price range between a quarter and a half
million dollars. The 219 we saw during
December is down from the three 14 in
November. But again, it's way up from
the one 24, the previous year and
inventory days.
You can see last couple of months, 28,
29.
That's a very hot market compared to
130 a year ago. Average sold price in
December was 355,000 in that price
range. And the days on market. Is 20,
which is relatively low compared to last
year in January last year, we had 44.

CONDOS under $250K
And moving on to condos under a
quarter million dollars. The 193 that
we've got available right now is way
down from the two 78, the previous
month and down from the two 72 last
year.
Same time. Median days on market right
now is 53 for those condos. Now, as far
as condo sales go in the past month, we
sold 43 condos under $250,000. That's
exactly the same amount as the previous
month. And it's nearly doubled the
previous year that makes our inventory
at 139 days, which is fairly fast for
condos.
It's much faster than November was
because there are less condos available
and it's way down from the 366 days the
previous year. So in other words, a year
ago, it would have taken a full year to
sell all the condos that are out there
right now. It only takes 139 days.
Average sold price for those condoms
was 169,200, which is down quite a bit.
So there are many of the cheaper condos
being sold. Lower price condos are days
on market only took 36 days. It's fairly
fast for condominiums and Winnipeg.

CONDOS over $250K
Now looking at all available condos.
Over $250,000 to infinity.
There are 148 available that's way down
from two 25 last month and two 34 last
year.
As far as sales go, we sold 34 condos in
this higher price range compared to 22
the previous month and only five. Last
year.
So the inventory days right now sits at
135 days. Three Oh seven was the
previous month and last year because
we only had five sales and we had tons
available that 1400 per 50 days is really
an outlier.

What should buyers do to prepare for the spring
One of the most common questions we
receive is "What is a good time to buy a
home?" While the answer is "Anytime
OTHER THAN the spring time", the
reality remains that home buyers come
out into the real estate market during the
months of March - June. So if you're
thinking of buying a home in 2021 or
beyond, here are a few things you should
be doing right now - to prepare.
Here is a timetable for first time home
buyers in Canada. In the U.S., check your
rules regarding any possible savings plan
for home buyers.
• Save for your down-payment via an
RRSP (1-2 yrs. before)
• Get your credit report (6 months - 1
yr. before)
• Make a final deposit into your RRSP
(3-5 months before)
•
1-2 years before buying a home
Buying a home means you will need a
minimum of 5% downpayment, plus
about 3% for closing costs. The average
house price in Winnipeg is around
$300,000, so that would mean home
buyers require $24,000 in cash at a
minimum.
Assuming you are working full-time,
and/or have the ability to contribute to a
Registered Retirement Savings Plan, I
highly recommend that you start placing
your savings into such a plan. First time
home buyers will be able to retrieve that
money later, without penalties.
spring of next year, you can contribute
your maximum RRSP amount anytime
now, right until the end of February 2021.
(Note: the money must be in your RRSP
account for at least 90 days before you
can withdraw it for a home purchase).
Get a Credit Check for Home
Buyers
About 6 months to a year before buying a
house or condo, get your credit checked.
Mortgage lenders reserve the best credit
rates for home buyers with the best
credit ratings.
Why get it checked this far ahead of
trying to buy a home? Because if there are
any credit blemishes on your record, you
will want to have enough time to repair
it. Credit blemishes could include:
• Liens or loans
• Over extended credit cards
• Unpaid utility bills
• Unpaid parking tickets (yes!)
Even if you run out and fix these items
right away, it usually takes a couple of
months to reflect the improvements on
your credit check. So fix them now,
before you apply for a mortgage.
Not just any credit check will do,
however. Mike Schroeder of Mortgage
Architects tells us that a Home Loan
Credit Check is what's needed. For that,
contact your mortgage lender directly, or
reach out to Mike at Mortgage Architects.
If you're planning to buy a home in the

market of 2021?
Make one last deposit into an
RRSP (Canada)
I f y o u s t i l l h a v e r o o m i n y o u r
contribution limits, go ahead an make
another deposit at least 90 days before
you go home shopping. You'll be able to
take that money out and use it as a down
payment, and STILL receive the tax
refund as well.
This is actually a neat little trick for
anyone looking to buy their first home.
Check this out:
You have $10,000 saved for a down
payment. On Jan. 2nd, you deposit this
into your RRSP (assuming you still have
the contribution room for the previous
year).
You file your income tax return, claiming
a $10,000 RRSP contribution, which will
get you a refund. The size of the refund
depends on your tax bracket. For this
exercise, lets assume that bracket is
30%.
On April 15th, you pull out the $10,000 to
be used as a down payment on your first
home. This is done WITHOUT penalty or
loss of any kind. (Some lenders may
charge an admin. fee? so check with
them on this)
End of April, our federal govt sends you a
tax refund which is now $3,000 larger
than normal (30% of $10,000). You can
use it as part of your down payment or
closing costs. For more info and to check
this out, contact my friend and expert
Thomas Johnson of Cascade Financial in
Winnipeg.

R e a l E s t a t e F
I really think 2021 will be great! Here is
my real estate forecast! Let’s recap:
Restaurants, airlines, personal service
providers and many others were hit hard
during the pandemic. One of the bright
stars remained the real estate industry,
which was, early on, designated as an
essential service. The reason for this
move is easy to explain and defend:
A single real estate transaction has, on
average, been credited with $40,000
worth of economic spinoff activity:
taxes, realty fees and legal fees, moving
and insurance costs, furniture and
renovation costs and more. On top of
that, real estate transactions can be done
in a safe manner. Aside from Open
Houses (which have largely been
curtailed) buying or selling a property
does not involve crowds and can be
policed and controlled.
After speaking with several real estate
agents in North America, I found that
t h e y a l s o w i t n e s s e d t h e s a m e
phenomenon we did here in Winnipeg. A
surge of buyers, looking to find
a home in an ever-shrinking list of
inventory. It seems that buyers were
there but sellers were hesitant to list
their homes. The result was that while
driving prices up (thru bidding wars)
homes also stood a better than normal
chance of selling.
Take a look at the table above:
This is a list of detached houses, listed
between $300K and $350K, showing the
percentage success rate of sale. So if a
seller listed their home in Winnipeg
between $300 and $350K, they had a
better than 87% chance at a successful
sale, or 5 in 6.
Throughout 2020, the numbers of
available listings have consistently been
down when compared to last year.
Today, (Dec 29th 2020) there are
536 homes on the market in Winnipeg.
This compares to over 1400 on Dec 15th
last year. (I can’t wait to see the number
once a bunch of home listings expire on
Dec 31st, stay tuned for the monthly
update which will come on Jan 3rd

o r e c a s t 2 0 2 1
that with (what I believe will be) higher
listing activity, and we should have a
very good year for selling and buying a
home in our city.
at magazine.winnipeghomefinder.com).
The amazing thing (to me, at least) is
that with all the talk of unemployment,
businesses closing and industries
undergoing pandemic restructuring and
hardships, the buyer activity remains as
high as it did. I can only imagine what
will happen when the overall economic
conditions improve.
REAL ESTATE FORECAST
FOR 2021?
In my humble opinion, I think 2021 will
be a bright one, all around. We can see a
light at the end of the pandemic tunnel,
with 2 vaccines already in production, a
3rd one getting close and another one
(Johnson & Johnson) rumoured to be in
the works.
In the near term, I believe that the first
homes to be listed around Feb/March
will see incredible buyer activity. By
that time, buyers will be itching to get
going again. Many of these buyers had
been unsuccessful in 2020, unable to
compete in bidding wars. So if you’re
looking to sell, being early to market
might not be a bad idea.
G e t y o u r h o m e r e a d y n o w b y
decluttering (you can donate a lot of
the gently used stuff to D’Arcy’s
Animal Rescue Centre, their new thrift
store ‘Annie’s Attic’ will be open soon
at 1560 Main St.)
Fix anything you need to repair, such
as worn out carpets, scuffed or worn
paint etc. And call your favourite
REALTOR for a pre-list examination
and some final tips.
My real estate forecast is: I think 2021
is gonna be wild…..in a good way.
Interest rates are expected to remain low
well beyond 2021, which is the main
driver of the buyer enthusiasm. Couple