Winnipeg Real Estate News Updates - July 2020
July 27, 2020 | Posted by: Ron Chan
We’re thick in the middle of a balmy Winnipeg summer which means that it’s time to kick back in some shade and read the latest news of local real estate and mortgage rates. Sound exciting? It is when you’re in the market for a new home. Let’s review.
Three Recent Developments in the Winnipeg Real Estate Market You Need to Know About as of July 2020
Impossible to Pass-Up Mortgage Rates Persist
Last month we reported that mortgage rates in Winnipeg (and Canada for that matter) were nearing all-time lows for key categories. We quickly topped that report off with news that interest rates continued in their free-fall, resulting in a free-for-all for new buyers and investors. In addition, this trend has resulting in a great opportunity for those considering mortgage refinancing, debt consolidation, and home equity loans. The great news is that these low mortgage rates are persisting deep into the summer months. For a more comprehensive look at the five ways Winnipeg is taking advantage of record breaking drops in the interest rate, click here.
Bank of Canada Hints - No Interest Rate Hikes Until 2023!?
We knew that there would be no hike in the prime lending rate through the remainder of 2020, even with a COVID 19 vaccine on the near horizon. But some expected the rate to climb somewhat at the onset of 2021. It doesn’t look like that’s going to happen as the Bank of Canada wants to give the country the opportunity to rebound along with the economy, and they know it will take some time for that to happen.
This month, Bank of Canada Governor Tiff Macklem commented that the BoC’s overnight lending rate of 0.25% is at an effective level to help the country accomplish its goal, and that the BoC has no plans to change that any time soon:
“Interest rates are very low and they are going to be there for a long time. Canadians and Canadian businesses are facing an unusual amount of uncertainty, so we have been unusually clear about the future path for interest rates.” (Canadian Mortgage Trends, July 2020)
Economists and other expert observers followed up on Macklem’s comments to state that it implies the BoC has zero plans to raise rates again until at least 2023. The record low mortgage rates (as per above) and this news has sparked some serious interest in Winnipeg real estate.
Manitoba Broke Home Sales Record in June
Can you imagine real estate sales hitting record numbers in the summer of COVID 19? Only in Manitoba folks! While low rates persist across the country, our province’s ability to escape most of the pandemic’s ravages has solidified our place as one of the most livable provinces in Canada. A perfect storm for buyers and investors has unfolded and as a result the Manitoba Real Estate Association reports that June saw a record number of home sales in a single month. We’re talking well over 2,000 residential properties sold at a combined value of over $616 million in total dollar volume!
If you had any doubt that Winnipeg was the place to call home for your household and/or investment dollar, you can now rest easier than ever. The time to act is now. It all starts with a call to Winnipeg’s most trusted mortgage broker and specialist, Ron Chan. Call Ron today at 204.290.9950.