House sales slow down in Steinbach, analyst says market is changing

A market analyst says the Steinbach housing market is shifting.

Peter Squire with Multiple Listing Service says it was clearly a seller's market in 2021 and is now more of a balanced market and in some cases even a buyer's market. Squire says like other areas of the province, things are slowing down in Steinbach.

Squire reminds us that 2021 was a record-shattering year for Steinbach. Through the first nine months this year, there were 400 single-family home sales from 580 listings. The number of sales is down 16 per cent from the same period a year ago when there were 474 sales from 578 listings. 

Squire says 2020 and 2021 were incredible years. 

"Those historic low interest rates really did kickstart an accelerated market that didn't really stop until we got into 2022," notes Squire. 

He says 2022 had a very poor start, largely due to the rough winter we experienced in southern Manitoba. This delayed the spring market. Squire says late May, June and even July were really good months before things started to slow down in August. 

"Definitely, September showed a real marked drop off compared to last year," he points out. "And I think we're going to see the same thing in the fourth quarter."

In September, there were 45 sales, compared to 53 a year ago. Squire says the most expensive sale registered with MLS last month in the Steinbach market was for $633,000.

With the first three quarters of 2022 having almost exactly the same number of listings as 2021, Squire says the difference lies in the number of listings being converted into sales. Last year, 82 per cent of listings became sales, whereas this year that percentage has dropped to 66 per cent. He notes last year those listings were selling very quickly.

"Now, listings are sitting on the market longer and in some cases, they are being taken off the market or withdrawn or price adjustments," he explains.

Though the conversion rate might be dropping, the average selling price certainly is not. Through nine months this year, the average single-family home in Steinbach sold for more than $367,000. That is up $40,000 from $327,000 through nine months last year.