Winnipeg Real Estate Market Update January 2011

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Each month, Winnipeg's Real Estate Blog produces a Real Estate Market Update by taking a look at the previous month's sales and listing stats on the MLS®.   We report on the total numbers of homes sold in Winnipeg during the previous month, and then take a look at how many Winnipeg homes are available on the last day of that month. By combining the two factors, we get a good idea of which direction the Winnipeg Real Estate Market is heading.... into more of a Sellers market, or slowing down into a Buyers Market. See last month's Winnipeg Real Estate Market Update.

I also separate the homes along the price line of $250,000, as homes below this price usually sell at a more brisk pace, while homes in the higher price ranges tend to take a little longer.

So, during the month of December 2010, a total of 293 homes of all types, price ranges and styles sold in Winnipeg. At the end of the month, there were a total of 468 homes available. By diving one number into the other, we arrive at a figure of "Months of Inventory" left on the market. This is like saying "If no more homes were listed in Winnipeg after today, how long would it take before all remaining homes are sold". Obviously, the lower the number, the hotter the real estate market. The Winnipeg real estate market remains one of the hottest in the country, with just under 1.6 months (6 weeks) of inventory remaining. By comparison some parts of Calgary are measuring inventory in terms of YEARS.... as in 1.4 YEARS of inventory.

We then take a look at homes below $250,000 and found that during the month of November, we sold 170 homes in this price range, and at the end of the month, a total of 248 such homes were available, meaning an even tighter market at 1.45 months of inventory.

Finally we can report that sales of homes OVER $250,000 have slowed a little, at least by Winnipeg Real Estate standards. We sold 123 such homes during November, and have 220 homes available on December 31st..... meaning a 'glut' of inventory sitting at 1.78 months.

What does all this mean? I believe we are heading towards a VERY busy spring market. If and when you are ready to sell, please call me anytime for a straight forward assessment of your home and the best chance to sell for top dollar.

Bo Kauffmann   204-333-2202

All home owners want to sell their properties for top dollar, but many of them make crucial mistakes throughout the process that prohibit them from doing so.

Selling your home for top dollar requires not only that you make your home appealing to buyers, but that you are also aware of the “tricks of the trade,” as well as the many things that can sabotage your chances of selling your home for top dollar. Keep in mind that you ARE up against other homes. For a look at all available Remax Listings in Winnipeg, go here.

Here is our list of the top four things you can do as a seller to better your chances of selling your home for top dollar:

1.     Work closely with your real estate agent to determine a fair sales price for your home. Today’s market is still a strong buyer’s market, and pricing your home high in hopes of getting an offer won't yield any results. In fact, not pricing your home to fit the local market conditions can have serious effects on your ability to sell your home at all. In other words, if you want to sell your home for top dollar, you must also realize that the market will only allow tolerate a certain range, so work closely with your real estate agent to study the comparables in the area and make the right choice when it comes to pricing your home.

2.     Give your buyers a little extra. Aside from presenting a lovely home with all the latest updates, simply providing your buyers with a little “extra” will make them feel as if they are getting a great deal when purchasing your home. For example, new kitchen appliances are always a big selling point, as are new window treatments and built-in closet organizers. Spending just a few hundred dollars can have a huge impact when it comes to selling your home for top dollar!

3.     Remain flexible when it comes to open houses and showings. Certainly, getting up at 8 am on a Sunday morning isn’t your idea of fun, but if it means accommodating an eager buyer, then it should be. Selling a home is probably one of the most stressful things you can go through, and that includes being willing and able to leave the home at a moment’s notice so that a buyer can tour it. However, saying “no” time and again to requests to view your home will likely result in a lack of interest and a common consensus among other real estate agents that you are a difficult seller.

4.     Make your home shine! Clean homes sell faster and for more money than their dustier counterparts. Take the time to empty the sink of dirty dishes, make the beds, and clear the shoes and coats from the entry before a showing or open house. If you don’t have the time in your schedule to keep your home neat and tidy so that it can be shown at a moment’s notice, hire a cleaning service to do it for you. We guarantee the money spent on a cleaning service will be more than worth it when it comes time to sell your home for top dollar!

Even in a buyer's market, you can sell your home for top dollar, as long as you implement the right selling, pricing, and presentation strategies!

The gold ole’ days of buying a home with little or no down payment are long gone now, thanks in part to the near-collapse of the credit sector and financial system that started in 2007. Due to the fallout from the sub-prime mortgage mess and subsequent losses that resulted from foreclosures and short sales, lenders are more particular than ever about whom they will lend money to for a home loan. By the way, to get a look at all available Remax Condo Listings in Winnipeg, go here.

Today's Lending Environment

In particular, first time buyers may find that obtaining a home loan is decidedly more difficult today than it was just a couple years ago. Aside from the obvious qualification of possessing an excellent credit score, lenders are now looking for large down payments from first time buyers.

Considering that today's lenders expect a 20% down payment, first time buyers must save tens of thousands of dollars, thereby making the process of becoming a first time home owner all that more difficult.

If the thought of saving tens of thousands of dollars for a down payment is simply too daunting, you may be over-thinking it. Instead of looking at the big picture of having to save a large sum of money, think smaller. Think in terms of saving on a weekly, even daily, basis, and soon that large number won’t seem so large anymore.

4 Smart Down Payment Saving Tips

Here are our essential tips for saving for your first home:

·      Make a budget and stick to it. You won’t know how much money you can afford to save each month if you don’t know how much you need for bills each month. Once you have made a budget, commit to saving a certain amount of money (think 10 percent). Don’t be overambitious, though, as this simply wouldn’t be realistic. Instead, consider realistic living expenses each month and save the rest.

·      Set up automatic debit from your paycheck or bank account each month so you never miss the money. The best way for first time buyers to get started saving for a down payment is to simply have the money deducted from your bank account or paycheck each month. Chances are you won’t even miss the money each month.

·      Keep your house savings account separate from your other accounts. A good rule of thumb for first time buyers when saving for a down payment is to set up a separate bank account (choose a competitive, interest-bearing account) from your regular savings and checking accounts.

·      If you don’t think you can afford to save each month, rethink your spending habits and your budget. Simply put, if becoming first time buyers is important enough to you, you will find the money to set aside for a down payment. If necessary, rethink your budget and cut back on spending, as needed. For example, rethink your television cable package (Do you really need premium channels?), your dining choices (Can’t you pack your lunch and save?), and your caffeine fixes (Have you thought about what those fancy coffee drinks are costing you each month?). These little spending changes can add up to a large down payment for a house!

Today's first time home buyers are expected to come to the table with good credit, solid employment, and a strong down payment. Thankfully, with these tips, you can save the money you need for the down payment of the home of your dreams! Check here for a look at the current real estate market update.