Best Time to Buy a House in Winnipeg? Yes, and Here’s Why
June 5, 2020 | Posted by:
Do you wish you bought Apple stock back in 1980? Amazon stock in 1997? Google in 2004? While those may be extreme examples, in ten years (or so) from now many people will be wishing that they invested in Winnipeg real estate back in 2020. Don’t become one of them. Instead, take control of your destiny today by getting a mortgage and laying the foundation for a very wise investment. Here’s why it’s a great idea.
4 Reasons Why the Spring/Summer of 2020 is the Perfect Time to Invest in a Winnipeg Home
New Listings Are About to Flood the Market (but temporarily)
The forced economic shutdown stopped nearly everything in its tracks, and the real estate market was no exception. New listings in April and early May fell significantly as homeowners and new development sellers took a “wait and see” stance. However, the tide is already turning, spurred not only by the reopening of the economy, but the fact that Winnipeg and Manitoba as a whole fared better than nearly all other cities/provinces across Canada when it comes to the health crisis. The curve was almost instantaneously flat in Manitoba, and this has renewed confidence in our central Canadian neck of the woods. Prospective sellers are now putting their homes on the market, which will increase the number of options available to both first time buyers and seasoned investors. However, this increase in supply will be short-lived as buyers, who are also experiencing renewed confidence, will start snapping up homes at very reasonable prices.
Much More Resilient Than the Rest of the Country
In markets such as Toronto and Vancouver (traditional real estate investment hotspots) the drop in sales has been around 70%. Uncertainly remains in those markets, whereas as mentioned above, Winnipeg MB has been far more resilient. This is true not just from a public health perspective, but from an economic one too. Yes, home sales and inventory dropped, but nowhere near as dramatically as with the other Canadian metropolises. This provides new buyers and investors with peace of mind that even should there be another national or international “event” Winnipeg will remain to be more isolated from the economic fallout. Real estate is almost as as good as gold over here.
Winnipeg Still Has Lots of Rural (less densified) Residential Communities
While Winnipeg continues to grow, it is not even close to being as densified as its counterpart cities to the east and west. There are a wide number of rural residential communities and suburbs in the greater Winnipeg area. With people looking to move away from tight-fitting multi-residential complexes in mixed residential/commercial areas to more spacious and less dense communities the demand for appropriately located housing will grow for years to come. By buying a house in one of these communities you will be making a very lucrative investment. The demand for detached houses in and around this city will persist.
Creates New Income Opportunities
Buying a house in Winnipeg today isn’t just about making a sound investment that will payoff in ten years or so when you may decide to sell. You can turn it into income soon after the closure of your purchase. This can be accomplished by putting the home on the vacation rental market. For obvious reasons the hospitality industry took a major hit in 2020, and hotels/resorts in particular won’t recover for quite some time. Vacationers of the near future will simply not be comfortable staying in hotels and in rooms where hundreds of people before them also lay their heads. The hallways, elevators, lobbies, and on-site amenities must be shared which is now a pretty big turnoff. For this reason the vacation rental industry will thrive in Winnipeg. If you’re investing in a second home you can pay off your monthly mortgage with monthly income coming from the influx of tourists who are looking for private accommodations. Learn more about why buying a house for this reason makes great sense along with a few vacation rental marketing tips to help you realize a faster ROI.
Don’t put off this opportunity any longer. At the very least you will want to consult with a reputable mortgage broker to discuss your options. Contact Ron Chan today at 204.290.9950.
