Winnipeg Real Estate News Updates - June 2021

June 21, 2021 | Posted by:

Winnipeg Real Estate News Updates - June 2021

The first official week of summer is here! Beyond plans associated with a welcome return to relative normalcy, many individuals and households are wondering about trends in another area - real estate. It’s been a month since we last checked in, to what’s going on with the Winnipeg real estate market. As we prepare to enter July we figured it to be a fitting time for an update for new buyers and investors. Let’s review what you need to know, if you’re considering a mortgage in the month ahead.

Recent Developments in the Winnipeg Real Estate Market You Need to Know About as of June 2021

What’s Up With Mortgage Rates?

This month’s Winnipeg real estate update coincides with the Bank of Canada’s second fiscal quarter announcement. As you know, any time the BoC makes their announcement, experts across the market focus keenly on mortgage rates. So will this period’s statement maintain, or drive borrowing rates up or down?

Let’s first look to see what the BoC had to say about the overnight rate. As we predicted last month (and the month before that) they are maintaining the rate at .25%. This is good news for buyers who lean towards variable rate mortgages. Keep in mind that we can get you access to better variable rates than compared to what your local bank is advertising. Contact us to find out what those preferred variable rates (for your situation) will be.

What about the 5-year fixed rate, which unlike variable rates are tied to the bond yield instead of the overnight rate? The BoC has also announced that they will maintain the quantitative easing program (QE), which to keep fixed mortgage rates lower than they otherwise would be during a strengthening economic period. In essence, the 5-year fixed rate will remain near historically low levels, even if some are predicting them to edge up slightly in July. But again, due to our relationships with lending institutions we can get you access to preferred and unadvertised 5-year (or other) borrowing rates. Contact us to find out what those preferred fixed rates look like, and how you can get pre-approved to lock them in before there is an upward shift.

New Stress-Test Level Introduced 

At the beginning of the month, the federal government raised the minimum financial bar that anyone applying for a mortgage must meet. They have set the new level at 5.25% or two full percentage points above the borrower's mortgage rate, whichever is higher. This equates an increase of about half a percentage point from where it was before. While this would normally be a turn-off for new buyers, please note that the 5-year fixed mortgage rate is around just 2 percent right now, and as mentioned, variable rate loans are also extremely favorable. This won’t be the case should rates rise significantly in the future, so if you plan on buying a home this summer, the sooner you act and lock-in your rates, the better. 

Winnipeg Real Estate Market Not Cooling Down

Our province could care less that the feds are trying to limit buying with their move to increase the stress test. The market may be cooling across much of Canada (a 7.4% drop in sales, month-over-month) but not here. There were 2,157 residential homes sold in Manitoba last month, beating the previous all-time single-month high of 2,055 in April. By the end of June, the city may or may not break another record, but sales will remain strong. We are a resilient bunch. The impact of this on buyers however, will be felt in inventory. As sales records continue to rise, availability of homes begins to fall. So once again the message is clear - act now while your dream home/investment is still out there.

The time to get a mortgage is Winnipeg is prime. Contact Ron Chan at 204.290.9950 to get the ball rolling.

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