Local housing market stable

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This article was published 09/08/2023 (968 days ago), so information in it may no longer be current.

Brandon’s housing market has remained stable amid price instability witnessed in the real estate industry across the Prairies.

Data gleaned from the latest price-per-square-foot survey for 2023 — conducted by Century 21 Canada between 2018 and 2023 — reveals that compared to significant changes in housing prices in neighbouring cities, Brandon’s market has been consistent.

According to the survey, Brandon’s detached houses have witnessed a gradual increase from $248,000 in 2018 to $276,000 in 2023.

In contrast, Saskatoon takes the lead with detached homes commanding $344,000. This figure, according to the survey, underscores the attractiveness of the region for families seeking larger living spaces at lower costs.

In other nearby cities, Regina and Winnipeg have experienced varying degrees of change. Regina’s detached homes, for instance, started at $254,000 in 2018 and reached $275,000 in 2023, following a roller-coaster pattern of value fluctuations. Meanwhile, Winnipeg faced a more turbulent trajectory, with detached house prices ranging from $282,000 to $315,000 before settling at $291,000 in 2023.

Brandon’s condo market similarly displays a trend of stability. Condo prices in the city began at $196,000 in 2018 and saw a gradual increase to $236,000 in 2023, with a minor decrease of 2.88 per cent in 2022. This consistent pricing, according to the survey, serves as an attractive feature for potential buyers and investors seeking steady investments in the housing market.

Real estate experts attribute Brandon’s stability to several factors, including its relatively smaller market size, steady population growth and interest rates. They say the city’s manageable rate of expansion has ensured that housing demand remains relatively constant, preventing drastic price fluctuations.

The affordability of Brandon’s market compared to other parts of Canada is an attraction, according to Jen Anning, the executive officer of Brandon Area REALTORS.

“Brandon and Manitoba as a whole remain one of the most affordable markets in the entire country. The price of a single-family home would easily be triple, or more, elsewhere in Canada, like Toronto or Vancouver,” Anning said.

Anning also highlighted the impact of continued migration into Manitoba on housing demand.

“Continued migration into Manitoba keeps demand for housing consistent,” she said.

There’s also a distinct nature to Brandon’s market, Anning said.

“We are a small market and rarely do we see big swings like many of the larger cities. We generally experience a balanced market.”

Anning underscored the importance of collaboration between various stakeholders.

“It is important to note, it is critical that all levels of government and industry work together constructively to create more housing supply and make homeownership more affordable and accessible for all Canadians,” she said.

Another realtor attributed the development to rising interest rates.

“That’s what really shifted things,” Cory Rae of Royal LePage said. “During the COVID period, they were at an all-time low, almost encouraging people to make their move. But now, with rates climbing four or five points, there’s a sense of apprehension. People are wondering whether they should hold back and see if they’ll come down again.”

The fluctuation in interest rates from the remarkably low one per cent during the pandemic to the current range of five to six per cent, has been a market-altering phenomenon, according to Rae, reshaping the motivations of buyers and sellers alike.

Brandon, as Rae highlighted, is experiencing an influx of new residents, contributing to the growing demand for housing.

“It’s not just about buying; rentals are in demand too. Many properties are filling up, and new construction is booming. People are arriving, and they need a place to call home. Everyone needs a roof over their head,” he said.

Rae compared the scope of the Brandon housing market with that of larger cities.

“Brandon’s market is primarily in the range of $250,000 to $350,000. We have the lower and medium ends, and then we gradually climb to the higher end. In contrast, larger cities like Winnipeg offer a much wider array of options across different price ranges.”

On the impact of government policies in shaping market stability, Rae says “I do recall they were offering grants and funding to first-time homeowners. That, I believe, would be significant. Saving for a down payment has become quite a challenge, especially with rising expenses. This assistance could really make a difference.”

To Rae, investor sentiment, which is a driving force in any market, also has its place in Brandon.

“Investors see the steady growth and reliable property values in Brandon, and that has certainly attracted and retained them over the years,” he said. “Real estate has a reputation for being a solid investment, and the market here reflects that.”

However, amid the positive currents, potential challenges loom on the horizon.

“We must remain watchful of interest rate spikes,” Rae cautioned. “They can significantly alter the market dynamics. Aside from that, it’s crucial that people can save for down payments, particularly for first-time homeowners. If interest rates remain stable, and the affordability factor is addressed, we can anticipate a fairly consistent market.”

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