Real estate enjoyed record year in 2020

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This article was published 17/12/2020 (2127 days ago), so information in it may no longer be current.

It has been a difficult year for many industries, but that doesn’t include Manitoba’s real estate sector.

Home sales figures actually improved in 2020 compared to 2019, according to stats released by the Manitoba Real Estate Association on Wednesday.

Last year, there was $4.27 billion worth of home sales. This year isn’t even over yet, but $4.81 billion worth of homes have been sold so far in 2020.

A total of 15,818 units have been sold to this point, including 2,060 in July and 1,231 in November.

The association’s president, Glen Tosh, said in the release that this was achieved despite an 8.4 per cent drop in new listings this year.

He also said that low interest rates have been a boon to buyers this year, something echoed by Brandon Area Realtors president Mandy King.

“We’ve had a really good year,” she told the Sun on Wednesday. “November, our numbers were down about 30 per cent, but year-over-year is just phenomenal.”

King, who runs No Place Like Home Realty, said that the source of this year’s good fortune was a hot topic at a recent cross-country call between real estate agents.

“Borrowing is cheap, right? Interest rates are so low right now that (real estate) is a great place to invest your money.”

She said that it has been hard to discern specific trends in buying this year in part because that lack of available houses for sales is driving demand differently than normal.

According to her, house prices are up an average of four per cent so far this year compared to last year as well. Overall sales are up approximately 10 per cent in Brandon compared to last year.

Part of why sales were so successful in June, July and August, she believes, is because supply was higher over those months until higher levels of health restrictions due to COVID-19 were introduced.

“People weren’t done shopping when we shut down, so I don’t think demand is going to be any different when we open back up.”

Despite the industry quickly having to figure out virtual home showings when restrictions started being implemented, King doesn’t believe they’ve dampened buyers’ enthusiasm.

“I think it’s really exaggerated the needs (for the industry) to adapt to new technology,” she said. “I’m shocked the measures Realtors will go to keep people safe. It’s a little tougher because when we have relocations and they can’t come, because of quarantining and stuff like that, they buy houses sight unseen by video. It changes the legal parameters of the purchase, but it still happens.”

She also said that the last three years have seen lower than normal numbers for real estate, and she sees this year as the market getting back on track.

While COVID-19 might have exacerbated figures, she predicts that strong sales will persist into July 2021.

“We don’t understand it all, but we’re happy to have it.”

» cslark@brandonsun.com

» Twitter: @ColinSlark