A marked increase in condo fees in several projects – which stemmed from a new regulatory requirement for projects to undergo reserve fund studies – has pushed away potential buyers in Winnipeg, according to observers.
This is despite the median price of a condo unit declining by 2.1% year-over-year during the third quarter, down to $240,933.
Demand in the region’s condo segment has certainly slowed down, especially when compared to markets elsewhere in Canada, according to Royal LePage Prime Real Estate managing partner Michael Froese.
“Condominium inventory has been rising throughout 2018,” Froese said. “Last year we saw a large number of housing starts. Demand hasn’t been strong enough to keep up as those units come onto the market, and this has caused some downward pressure on condo prices.”
Overall, however, Froese assured that “Winnipeg’s housing market has been very resilient, buoyed by the region’s stable and diverse economy.”
“Inventory has crept higher, and sales activity has fallen slightly from the strong 2017 market, but home prices have remained steady. The market is relatively affordable across a wide variety of housing types, which is a positive environment for buyers.”
Across all property types, the median home price in the city increased by 3.3% annually during Q3 2018, up to $309,101.