RTB shuts down their reports for the summer months, that being July & August.

We look forward to updated numbers come September.

- Provided by Garret Wong, Upper Edge Property Manager

The federal government released draft legislation to allow individuals to open a Tax-Free First Home Savings Account (FHSA) at some point in 2023 to help them save for a first home. Contributions to an FHSA will be tax-deductible and the income earned in the account will be tax-free. Qualifying withdrawals (i.e., amounts used to make a qualifying first home purchase) from an FHSA will be tax-free but any withdrawal for other purposes will be taxable.

To open an FHSA, individuals must: (1) be at least 18 years of age; (2) be resident in Canada; and (3) not have lived in a home that they owned at any time during the year they opened the account or during the 4 preceding calendar years. They are limited to make non-taxable withdrawals from the account for only one property during their lifetime. Once they have made their non-taxable withdrawals to buy their home, they must close their account within a year after the first withdrawal and are not allowed to open another account during their lifetime.

Effective for 2023, individuals can contribute up to $8,000 per year and $40,000 during their lifetime to the FHSA. Any portion of the $8,000 annual contribution limit not contributed in a year can be carried forward to a subsequent year. Individuals may hold more than one account but their total contributions to the accounts cannot exceed those annual and lifetime limits.

Individuals may transfer FHSA funds to an RRSP (before they turn 71) or a RRIF. These amounts will not be taxed when they are transferred but will be taxed when the funds are withdrawn from the RRSP or RRIF. Those transfers will not affect the RRSP room or FHSA contribution limits. An FHSA must be closed if it has been open for 15 years and funds have yet to be used to buy a qualifying first home. Unused FHSA savings may be transferred to an RRSP or RRIF or withdrawn on a taxable basis. RRSP funds may be transferred to an FHSA on a tax-free basis, subject to the $8,000 annual limit and $40,000 lifetime limit, but without any effect on the individuals’ RRSP contribution room.

An FHSA is permitted to hold the same types of qualified investments that are currently allowed to be held in a TFSA or RRSP, including mutual funds, publicly traded securities, government and corporate bonds, and guaranteed investment certificates. The prohibited investment rules, which prevent investments in investments to which the holder is closely connected, will also apply to FHSAs.

Note that individuals cannot make both a home buyers’ plan (HBP) withdrawal and an FHSA withdrawal in respect of the same qualifying first home purchase.

Active listings: In July 2022 were 3,699 which is up 26.7% year over year but down 17.5% over the 5-year average.

New listings: In July 2022 were 2,359 which is up 8.6% year over year and down 2% over the 5-year average.

Commercial Real Estate listings: July 2022 68 New Listings VS 40 New listings in July 2021.

Number of total MLS Sales: In July 2022 were 1,542 which is down 8.1% year over year and down 2.8% over the 5-year average.

Number of total MLS Sales Year-To-Date: 9,589 which is down 18.7% year over year and up 1.7% over the 5-year average.

Sales to Active Listings: July 2022 41.7% vs 57.5% in July 2021

Sales to New Listings: July 2022 65.4% vs 77.3% in July 2021

Detached home sales for July 2022 were 1,124 which is -4.5% year over year and -1.8% over the 5-year average. The average sales price for a detached home this month was $399,780 which is down 6.6% from $426,500 in June 2022.

Attached home sales for July 2022 were 84 which is -32.3% year over year and -15.7% over the 5-year average. The average price for an attached home this month was $323,478 which is down 4.8% from $339,230 in June

Condominium sales for July 2022 were 221 which is -1.8% year over year but up 8.5% over the 5-year average. The average sales price for a condominium this month was $271,900 which is a 24% drop from the month of June.

Five most active areas in Winnipeg for July 2022:

2J (Bonavista, Island Lakes, Royalwood) 19 listed 19 sold

3M (Canterbury Park, East Transcona) 39 listed 25 sold

4D (Margaret Park, Scotia Heights, West Kildonan) 35 listed 23 sold

1G (Charleswood) 20 listed 18 sold

2D (St Vital) 25 listed 21 sold

Year-to-date appreciation in Winnipeg:

Residential-detached homes: 13.29%

Residential-attached homes: 14.3%

Duplexes: 9.1%

Condominiums: 7.6%

REMARKS:

Main contributors for the significant drop in number of home sales is a COMBINED effort of interest rates going up AND we are coming off of the hottest selling months of the season.

A notable development is the healthy increase in inventory as upposed to earlier in the year. The first half of the year saw months with under 2,000 listings, whereas July has reached 3,700 listings.

Absorption Rate:

Sellers market = 0-3.5 months of inventory

Balanced market = 3.5-4.5 months of inventory

Buyers Market = 4.5+ months of inventory

Absorption rate in June 2022 was 1.93 months of inventory

Absoprtion rate in July 2022 was 2.4 months of inventory

This suggests that we are still in a sellers market, but could be on our way to more of a balanced market for buyers and sellers.