WINNIPEG —; Condo hunters in Winnipeg are in for a deal right now.
Royal LePage Prime Real Estate’s survey released Wednesday showed a nearly four per cent drop in condominium prices from the same time last year. Royal LePage said the median price is just over $206,000.
Peter Squire with the Winnipeg Realtors Association said the price drop is thanks to a few key reasons.
“There is an oversupply presently in our market. As a result there is some downward pressure on prices,” said Squire.
He explains an over-supply means a competition vying for the buyers’ attention.
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“It’s really a competition between single family homes and condos. So, again it makes the value proposition for condos a little more challenging. Not only competing against other condos because there are so many, but they’re also competing against some affordable family homes in the city.”
Royal LePage and the Winnipeg Realtors Association both explain an easy way to understand Winnipeg’s condo prices is to remember the rules of supply and demand.
“Rise in inventory gives buyers more selection. They can go in to a lot of different buildings right now. Generally speaking then that means prices tend to go down when the demand isn’t there,” said Michael Froese with Royal LePage.
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Squire says condos and homes competing for the same buyers is a situation almost unique to Winnipeg. Especially when you look at the drastic climb in cost in cities like Vancouver and Toronto.
Both experts agree while the competition continues, they can expect in the next one to five years, condos will increase in cost once again.