Winnipeg's Real Estate Blog

Market Update for Winnipeg! October 22nd, 2008

Here are the latest sales stats for homes and condos located in areas 1A to 9A, which is basically inside Winnipeg, but includes East St Paul and Headingley North and South:..

Homes:  As of October 22nd, 2008, in the city of Winnipeg, we currently have   1399 homes listed on M.L.S.

Over the past 30 days,  584 homes have sold in that same area.

This means that we have sufficient inventory for   71.8 days worth of sales.

Compare this to the past spring and summer, when our inventory was sufficient for approximately 16 days of sales.

Condominiums:  Currently we also have  250 condos for sale.

Over the past 30 days,  69 condos have sold.

This means we have sufficient inventory for approximately 108  days worth of sales.

Compared to the spring and summer, when we had 38 days worth of inventory.

Bottom Line:  Now is an excellent time to buy, either a home or a condo. 

Listing Expired? House did not sell? What is the next step?

Did your listing expire, but you're still interested in selling the home?  What's the next step?

First of all, don't despair!  Even at the height of our busiest times in the past few years, approximately 25% of listings did not sell during the first listing period.  So you are not alone.  But now is the time to take a closer look at why the listing failed to sell.  Here are a couple of the major reasons this could be:

1) Inadequate Marketing:  One side-effect of a super-hot market is 'complacency'.  Real Estate Agents, who are traditionally known as some of the best marketers in business, start to believe that every house will sell, even without advertising and marketing.  The thinking went: "Just put it on the M.L.S. and it will sell".  That may have been sufficient in most cases, but in a slower, more level market, it will not be enough.

Add to this a huge influx of new real estate agents, lured by the promise of 'quick and easy money', and who need to spend more time and money promoting themselves rather than their clients listings.

So question is:  did your home receive adequate coverage, in printed newspapers, magazines and on the internet?

For a look at my marketing plan, click on Marketing Plan..

2) Selling in "As-Is" Condition:  Another side effect of the hot market is that home-owners start to believe that every house will sell.......no matter what!  I recently toured a home where nearly half of the light-bulbs were burned out.  After going into yet another dark bedroom, flicking the light-switch in futility, I suggested to the owner that they replace the burned out bulbs.  The response was "We're selling it "as is".....if someone wants our home, they can replace their own bulbs".

This is a bit of an extreme example, but you get the idea. 

3) Price:  Actually, this has always been the main factor for failure to sell.  And these days, it will be even more important to get the 'asking price' correct, right from the start. 

4) Be out of the home when it shows:  This is where the private sellers completely 'miss the message'.  The fact is, most buyers want to be able to examine a home in peace and leisure, with their agent, so that they can discuss various options and features of the home, without having the owner overhear what they are saying.   Don't believe me?  Think of it this way:  the next time you go to test drive a car, do you want the salesman to drive you, or do you want to go for a drive with your spouse or significant other, so you can discuss the car, test it, etc etc, without a pushy salesman nattering in your ear? 

These are some of the main reasons why a home might not sell right away.  As our Winnipeg market starts to level off a little, going from a super hot sellers market to a more balanced one, these reasons become even more important.

For a copy of my brochure titled "Selling...How to avoid the 10 biggest mistakes", contact me, Bo Kauffmann, at 204-333-2202  or e-mail me at bokauffmann@remax.net

The U.S. Housing Crisis: How will it effect Winnipeg Buyers?

It seems that we have no choice but to watch and listen to the news report, as the U.S. stock- and housing-markets fall.  First of all, let me repeat what I had said in an earlier article:  Manitoba (and Winnipeg) housing markets are NOT subject to the same problems that are plaguing the U.S. now.  For reasons, please read:Housing Market in Winnipeg

Will their turmoil effect us?  To some extent, that is inevitable.  As consumer spending tightens, so does the need for exporting our goods.  As exports dry up, job losses follow.  Job losses means (in some cases)  home-losses etc etc.  This is a very condensed version of what could happen.

However, our housing market is not subject to the bad loans and poor building practices which occurred in the U.S.

Having said that, we will most likely see a 'levelling off' of the market.  THIS IS A GOOD THING.  Up until now, we have had an extreme "Sellers Market", with some sellers enjoying 10 to 20 offers on a house.  This may come to a stop and I repeat, THAT IS A GOOD THING. 

What will this mean for the average buyer:

First Time Buyers:  Now is a great time to buy.  Especially if you only have that 5% down payment, and were up against 10 other offers in the past, (many of which were unconditional), now is an excellent time to shop.  I've seen a couple of real 'gems' on the market, which only about a month ago would have received multiple offers, but are now sitting on the market, waiting for an offer.  At this time, there are over 1200 listings available in Winnipeg, well up from the 500 to 600 available thruout the spring.  Work with a Realtor who is a trained and certified Buyer Representative, and who can show you all of the listings on the market.  And yes.....I am a certified A.B.R.  (Accredited Buyer Representative)  For more info, contact me, Bo Kauffmann by emailing, bokauffmann@remax.net..

Down-sizing?:  Again, now might be a great time to do that.  If you are selling a higher-end home and looking to purchase something cheaper, by waiting to see if the market drops, you could actually loose.....(if the lower price home drops 10%, and your home also looses 10%, you loose more than you can save on that smaller home)...

Selling Your Home?  A more level market will demand 2 things: more 'accurate pricing' and more 'involved marketing'.  Here is what I mean: in the past, setting an unrealistically low asking price for a home was an accepted practice....after all, with so many buyers, the homeowner could (and often did) receive a multitude of offers, and the house would sell for well above the asking price.  However, with fewer buyers, the chance of getting that 'bidding war' is diminished, and sellers (and their agents) who underprice a listing may end up with just one offer....at asking price. 

In addition, selling homes will now require a marketing plan which goes beyond simply 'listing it on the M.L.S.'   A little more effort needs to be invested to find the buyers, wherever they may be.  Here is where the Realtors who have invested in websites, Internet marketing, magazine advertising and other forms of marketing will be most successful.  For a look at my marketing plan, click on: Marketing Plan ...

Selling Privately:  The days of selling a home by simply "plunking a colorful sign in the ground' may be coming to an end.  NOW more than ever, buyers will turn to a Real Estate professional for proper advice and guidance.  This advice they CAN NOT receive from the home owner directly, but only from a qualified Real Estate Agent.

In the end, a more balanced market (IF that is what is happening)  is a GOOD THING.

Please keep in mind that the above is simply my take on the situation........certainly not officially endorsed by any Real Estate Broker, Organization or Company.

Selling your Home on your own? The Market is Changing!

Update for October, 2008

"The Market is Changing!"

By now everyone has heard about the US market and housing melt-down.  While we here in Manitoba are somewhat insulated from this, we are beginning to feel a change in the market.

Houses which were getting multiple offers, are now selling at 'list price', and other are taking longer to sell.

The first ones to feel the pinch will be (and are) the Private Sellers, who for years have been told that its 'easy to sell your own home'....you don't need a Realtor." 

Well, for years it was easier, mainly because there were so many buyers out there.  Once the flood of buyers has started to slow down, the remaining buyers now have a choice of homes to look at, and are doing so WITH A REALTOR.   Having a choice means "Less Competition", and so these buyers are no longer forced to consider the often overpriced, always inconvenient alternative of "private sales".

The time of being able to sell a house by simply 'plunking a colorful sign in the ground' is coming to an end.  This may have worked for some homes in a market which was flooded with buyers.  But in a more level market, where buyers no longer outnumber sellers by 10-to-1, finding the right buyer for your home requires a little more than a spot on the internet and a color ad in a magazine.  It requires teamwork and an organization with a proven track-record of over 100 years of success and service.

That type of teamwork is available ONLY thru a Realtor.  By listing your home, you will immediately gain access to all 1400 Realtors in Winnipeg, and all of the buyers working with them.

So if you are considering spending $700 on a Do-It-Yourself kit, please think about this:  Buyers who are looking for a house on their own will ALWAYS look at a "Listed House" (listed with a Realtor), but buyers who are committed to working with a Realtor will almost NEVER look at a "Private Sale".  Get access to All the buyers.........List with a Realtor!

For a look at my marketing plan for YOUR home, click on  Marketing Plan