Winnipeg house prices likely to stay flat in 2020: forecast

The federal government is instituting significant changes to Canada's mortgage rules aimed at ensuring homeowners will survive an increase in interest rates. (File image/ The Canadian Press

WINNIPEG — The real estate firm Royal LePage has released its annual Market Survey Forecast for 2020, and the report says Winnipeg will buck a national trend toward housing price increases.

The report issued Thursday said Winnipeg home prices are expected to remain flat.

The report said the aggregate price of a home in Winnipeg will stay at the year-over-year mark of $321,000.

The report suggests median condominium prices will experience a growth rate of 1.5 per cent while prices for detached houses will decrease about a quarter of one per cent.

Aggregate prices are calculated using a weighted average of the median values of all housing type transactions collected in a specific region.

“Winnipeg is a vibrant city that attracts young professionals looking to live in an affordable place where beautiful homes are not financially out of reach for most residents, ” said Michael Froese, who is a broker and manager at Royal LePage Prime Real Estate.

“Winnipeg’s diverse economy and steady employment insulate us somewhat from external economic factors, including a potential 2020 recession in the States.”

Froese attributes part of the Winnipeg region’s appeal to its expanding tech hub, with population growth continuing to fuel sales.

“The Canadian dream of owning a two-storey home in a family-friendly community with access to excellent schools is attainable in Winnipeg for newcomers with more modest savings,” said Froese. “According to Royal LePage’s newcomer research released in October, over 40 per cent of home buying purchases in the Prairies are made by newcomers to Canada.”

Meanwhile, the report said the aggregate price of a home in Canada is forecast to rise 3.2 per cent year-over-year to $669,800.

Again, the nation’s highest housing prices are found in Vancouver and Toronto, although the report said the markets likely to experience the highest price increase percentages are growth in prices are Montreal (5.5%), Toronto (4.75%) and Ottawa (4.5%).

The report said besides Winnipeg, Regina is the only other market where prices are expected to stay flat.