Winnipeg Real Estate News Updates - August 2021
August 27, 2021 | Posted by:
It’s hard to believe the August of 2021 is almost in the history books. As each month comes to a close our Winnipeg mortgage brokerage likes to review recent events that may impact your decision to buy a home. Although the next Bank of Canada mortgage rate announcement (here’s the one from July) isn’t due until September 8th, we can take a look at what’s happening with home sales and Winnipeg real estate in general. Let’s get to it!
Recent Developments in the Winnipeg Real Estate Market You Need to Know About as of August 2021
Home Sales Finally Cooled (sort of)
Month after month we have been perpetually reporting record breaking numbers for home sales in Manitoba. Finally we have a summer month that exhibits a cooling trend, albeit it a fairly small one. In the most recent (Friday, August 20/2021) Manitoba Real Estate Association (MREA) release, it was reported that home sales in the province in July (2008 homes in total) were down slightly (2.5%) from the same month last year. New listings were also down, but that figure barely registers, at just .4%. If you’re a seller, keep in mind that the market is still primed to deliver a profit on your initial investment, as July of 2020 was a record breaker. The numbers from the same month in 2021 are still exceedingly impressive.
The above references data for Manitoba as a whole. What about Winnipeg, specifically? There was a month-over-month cool down, as the Canadian Real Estate Association (CREA) reports that July sales were down almost 16% from June and down 12% year-over-year from July 2020. But again, we’re comparing this data to record breaking periods. Still, first time buyers will take any slow down they can get. Aggressive sales have been reducing inventory, which subsequently increased prices. However, the recent cool down (even if temporary) has already had an immediate and positive impact (for buyers). CREA reports that the average price of a detached home in Winnipeg was $395,576, but for July that number dropped by nearly $18,000 down to $377,789. An $18K cost savings sounds pretty good, doesn’t it?
We encourage buyers to act now and get pre-approved for a mortgage. Not only are prices favorable, fixed and variables rates remain at near record lows. That won’t last forever. The Bank of Canada may not have made a prime rate announcement in August, but they did issue a press release to report a major spike in the Consumer Price Index (CPI) inflation rate to 3.7 percent. Given that mortgage interest comprises a substantial portion of the CPI basket of goods used for inflation calculation, we could see increases in home loan rates sooner than expected. Of course, we’ll keep you updated on that matter, right here.
Get started on your home loan today, by calling 204.290.9950 to speak with Winnipeg mortgage specialist Ron Chan.