Condo Living

February 7, 2025 Published by Manitoba Chapter - By Alan Reiss

The Reiss Report: Real Estate Outlook January 2025

From the CCI Manitoba Winter 2025 Condominium News and Views Magazine

Real Estate Rebounds in '24

The past year was a time of recovery and rebound for the Winnipeg Regional Real Estate Board market, with an increase in condo sales of 13 per cent in 2024 as compared with the year before. In particular, the fourth-quarter sales were 24 per cent higher than for the same quarter in 2023 and just short of the highest fourth-quarter sales record set in 2021.

The 6 per cent increase in average price ($274,201 in 2024) was influenced by an increase in the number of condos sold above list price — 20 per cent in 2024 versus 14 per cent in 2023. While many condos were sold below list price (66 per cent), the vast majority were barely so. Also worth noting, the average number of days to sell a condo in 2024 was 30 days, three days more quickly than in 2023.

The interest rate cuts from the Bank of Canada certainly helped with the improved performance in the market but the shenanigans going on south of  the border will have a great influence on what happens in 2025. Regardless, our local market is one of the most affordable condo markets in the country.

In 2024, a total of 2,200 condos were sold in the market and the 260 listings for sale at year end represent only 2.2 months of inventory if there are comparable sales in 2025. Typically, four to five months of inventory represent a balanced market, so without further increases in inventory, condo prices could rise. That said, new condominium builders are becoming more active with a variety of offerings. There are approximately 60 new construction condo listings available within the Winnipeg Regional Real Estate Board market region and there may well be more in the offing this year given how well the condo market performed in 2024.

Despite the 6 per cent increase in the average sale price of condos in 2024, the gap in average sales price between single family homes and condominiums grew in 2024. The average single-family home price in 2024 was $423,878, whereas condominiums came in at $274,201. This represents a $150,000 difference, so there is a clear advantage 

for first-time home buyers who are looking to get a foothold in the ownership market.

Those governments claiming to be working to address the affordability crisis should review their policies in relation to condos to take advantage of the $150,000 price gap.

Another motivator for those who are currently renting and want to become first-time buyers is to build equity and pay themselves instead of their landlord, especially since average rents for a one-bedroom apartment in Winnipeg rose 5.6 per cent in 2024 to $1,416 and rose 3.5 per cent to $1,771 for a two-bedroom unit (according to https://rentals.ca/national-rent-report).

Finally, with respect to affordability when it comes to property taxes, the provincial government education property tax rebate with a maximum credit of $1,500 is most conducive and favourable to owners with less-expensive condominium properties ($285,000 and below - New Tax Credit for Homeowners will Save Manitobans More Money).

Alan Reiss is a director of CCI Manitoba, is a member of several CCI committees and a condo specialist with RE/MAX PROFESSIONAL.