March home sales down from last year, up from pre-pandemic levels: MREA

According to the Manitoba Real Estate Association, 1,519 residential properties were sold last March in the province, with total sales of $578.3 million. (File Image)

Winnipeg — March home sales in Manitoba missed breaking the record set a year ago, but continue to far outpace pre-pandemic levels, according to the Manitoba Real Estate Association (MREA).

The association released its March 2022 figures Tuesday.

It said 1,519 residential properties were sold last March in the province, with total sales of $578.3 million. That is down 24.7 per cent and 15.3 per cent respectively from records set in March 2021.

“A number of factors are at play in the market,” said MREA president Stewart Elston. “Low inventory levels have spurred competition among buyers pushing sale prices to new heights. Meanwhile, interest rate hikes are increasing the cost of borrowing but a countervailing effect on buyer demand may not be readily apparent as supply remains incredibly tight.”

MREA said new listings are down 23.4 per cent year-over-year. The average sale price is $380,707, which is up 12.5 per cent to the highest point ever.

A typical, pre-pandemic March in Manitoba would generate about 1,100 home sales, MREA said. Elston noted 2,018 properties sold in March of 2021.

He notes supply continues to be a critical factor.

“The last time the province had fewer than 2,000 new listings in March was 2014. Manitoba requires a sustained increase in the supply of homes listed for sale to pull the market back to more balanced territory," Elston said.

The association said new listings are down 25 per cent from the quarter mark of last year.

It estimates 2021 home sales generated over $1 billion in additional economic spinoff activity, including spending on moving costs, furniture, appliances, renovations and professional services.