Home sales continue post-pandemic plunge

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This article was published 25/01/2024 (603 days ago), so information in it may no longer be current.

Residential single-family home sales in Brandon hit a 10-year low last year, showing no sign of recovery after a record high in 2021.

The number of listings sold, which excludes condominiums, stood at 486 last year, reflecting a slight decline from 496 in 2022 and a significant drop from 673 in 2021.

It was also the lowest number recorded since 2013 when 568 sales were reported.

Also, the dollar volume from sales amounted to $150,777,894, showing more than a 25 per cent drop from $204,208,587 two years ago. The trend also affected new listings, which fell from 817 in 2021 to 643 in 2023.

Attributing the decrease to a combination of factors, Brandon Area Realtors president Zach Munn said the number of new listings was 174 fewer in 2023 compared to 2021, adding with less residential inventory available, there were only 10 fewer sales than in 2022.

“The abnormality of 2021 due to COVID, owing to the very low-interest rate environment, contributed to the stark contrast in sales figures,” he said. “A significant factor contributing to low inventory in 2023 is the opportunity many homeowners had in 2020 and 2021 to secure historically low interest rates and since then we saw a significant surge in rates.”

The trend is not limited to Brandon. The Canadian Real Estate Association confirmed the nation’s housing markets witnessed some of the lowest annual sales volumes in more than a decade.

In its latest statistics, CREA revealed that the annual home sales total of 443,511 units in 2023 was a decline from about 670,000 in 2021 and “technically the lowest annual level for national sales activity since 2008.”

“While December did offer up a bit of a surprise in sales numbers to cap the year, the real test of the market’s resilience will be in the spring,” CREA chair Larry Cerqua said. “There are only a couple of months left until that gets underway. If you’re looking to buy or sell a property in 2024, you’ll want a game plan, so contact a realtor in your area today.”

Interest rates, CREA explained, have been a major influencing factor in the markets during the last few years and this is expected to continue in 2024 and 2025.

CREA’s recent forecasts predict a higher number of interest-rate cuts in 2024 than expected, contributing to a more optimistic outlook for housing sales activity this year.

The national forecast predicts a 10.4 per cent increase in residential property sales, with Alberta expected to see significant gains. Manitoba will experience a 5.1 per cent increase in sales activity in 2024, with another 8.4 per cent increase anticipated in 2025, according to the forecast.

“This outlook is contingent on factors like the impact of interest rate hikes by the Bank of Canada last summer,” Munn told the Sun. “CREA’s Manitoba outlook should be fairly accurate at a local level if rates continue to decline as many expect. Major banks have had multiple reductions on fixed interest rates as of late. A source confirmed one of the banks has reduced six times since November 2023.”

As Brandon navigates through these shifts in the real estate landscape, Munn added the expectations for 2024 will be closely monitored, with the dynamics of interest rates playing a pivotal role in shaping the market.

» aodutola@brandonsun.com

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