Winnipeg Real Estate News Updates - Winter 2020
February 3, 2020 | Posted by: Ron Chan
We’re over a month into 2020 which means it’s time for another update regarding mortgage rates and real estate in Canada, especially as it applies to our neck of the woods - Winnipeg. There’s a lot going on, and most of it is good news for first time buyers and real estate investors alike so as always - let’s get to it.
Three Recent Developments in the Winnipeg Real Estate Market You Need to Know About in the Mid-Winter Season of February 2020
Bank of Canada Purchasing 10-year Canada Mortgage Bonds (CMBs)
Leading into February the Bank of Canada announced that it will be purchasing 10-year Canada Mortgage Bonds (CMBs), making it the first time that it has done so on the open market. What does this mean? Before, the Bank had only dove into 5-year fixed and 5-year floating rate note issues. You’ve seen the near-historic lows for the each in 2019, so does this equate the same for 10-year fixed mortgage rates? Most experts say yes. The BoC move will more than likely make 10-year fixed-rate mortgages more competitive and therefore attractive to borrowers - which is indeed the end game as the Bank hopes to stimulate the economy with a flurry of home purchases. Their game is your gain folks - 2020 is prime for entering the market. You next move should be to connect to a local mortgage broker, someone who can connect you to lenders offering preferred and unadvertised rates, be they 5-year, 10-year, or variable. Contact Ron Chan right away at 204.290.9950 to get the ball rolling, or keep reading.
Global Fear and Your Home-Purchasing Power
2020 has started off with a bang, and not in a good way when it comes to panic and fear. For one, political strife between Canada (not just the U.S. anymore) and the Middle East is high. Then there’s the Wuhan coronavirus that has everyone on edge, pondering the economic impact that it may have on our side of the planet. Whether or not fear and panic is justified is beside the point, as it has already had an impact on financial markets as January came to a close. In one day the TSX fell by 142 points while the Dow dropped by over 450 points. In response, Canada’s 5-year bond yield fell dramatically to a 3-month low, which all but guarantees that mortgage rates are heading even lower than what we saw in 2019. Look, we’d all prefer to live in a world removed from such global concerns, but in the end it’s improving your purchasing power as a prospective homeowner. At the very least you can make your world a better place by finding a place for your household to truly call home.
Winnipeg Home Prices - Good for Investors and Buyers Alike
The recent Royal LePage House Price Survey reported that the average price for all categories (condos, detached homes, etc.) of Winnipeg homes rang in at $321,346 as the fourth quarter of 2019 came to a close, denoting 7.4 percent year-over-year increase. That rate of increase is GREAT for investors who have their eyes on the prize. This sort of thing typically scares off new buyers who may wait out rising prices - but that applies to those who are buying in Vancouver, Calgary, Edmonton, Toronto, and all other major metropolises across Canada. Do you know why? Of course you do - you already saw above that the average price was just slightly over $321,000. That’s right, even with a very healthy (from an investment perspective) increase of 7.4% Winnipeg remains to be the most affordable major city housing market in Canada. Why would anyone live/buy anywhere else? Just invest in a warm parka for the winter and mosquito net for the summer and you’re good to go!
Contact Ron Chan today at 204.290.9950 to take advantage of everything addressed above.