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Follow on Google News | Majority of Homes Sell For Over $200,0002010 february mls® sales up 8% in winnipeg manitoba
By: Tony Rinella - WinnipegRealtor Century 21 March 4, 2010 FEBRUARY MLS® SALES UP 8% - - - Majority of Homes Sell For Over $200,000 WINNIPEG – Besides resulting once again in another month where dollar volume sets a new record for the month as it was up 9% over the previous best dollar volume February in 2008, a significant development this month is a clear shift in overall residential- Similarly, condominium sales activity went upward too in comparison to February 2009 but the only difference from residential- If you wanted to use an Olympic Winter Games analogy, Winnipeggers are reaching for higher levels in terms of house and condo values where Canadian athletes were going for gold. The current low interest environment is the biggest enabler in this regard as it helps keep affordability within the realm of many buyers. Another clear difference this year compared to last is the number of home sales in February that went for over list price doubled from 22 to 44%. Another 44% however sold for under list price. February MLS® unit sales of 712 and a dollar volume of over $150 million would be considered one of WinnipegREALTORS®’ Year-to-date MLS® unit sales are up 1% (1,199/1,184) “February market activity shows a real improvement over January and is more in line with what our expectations are for this month,” said Claude Davis, president of WinnipegREALTORS® Davis added, “We expect to see a continuation of strong market activity with more listings coming on stream as move up buyers will want to take advantage of affordable mortgage rates before interest rates rise later this year.” One huge beneficiary of the trend to higher sale prices over $200,000 is the provincial government. For any amount over $200,000 the highest land transfer tax rate in the country applies. So, at 2%, it means for every $50,000 increment over $200,000, the province collects an additional $1,000 in land transfer taxes from the home buyer. A $300,000 home creates a $2,000 windfall for the province based just on the 2% tax rate and another $1,650 for the amount below $200,000. “You might say bracket creep is alive and well in Manitoba since there have never been any adjustments made to reflect higher sales prices since the inception of this tax in 1987,” said Davis. “There actually has been one change and that was made in 2004 when the provincial government raised the highest tax rate at the time from 1.5 to 2%.” An unfortunate result of this land transfer tax is it has impeded the first time buyer from getting into the market to the same extent as has happened elsewhere in the country where there is no land transfer tax or a first time buyer exemption. For residential- 34% of condominiums sold were from $150,000 to $199,999 while another 28% sold in the next lower price range of $100,000 to $149,999. The average days on market for condominiums was the same as residential- If you are in the market to sell your home please call Tony Rinella at Century 21 Bachman & Associates for a FREE MARKET EVALUATION of your home! You will receive a detailed report of all the comparable homes SOLD and ACTIVE within the last 12 months. Service is absolutely FREE and you are under no obligation to sell. Tony Rinella Century 21 Bachman & Associates 360 McMillan Ave. Winnipeg, MB R3L 0N2 (204) 784-3347 End
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