Winnipeg Real Estate News Updates - March 2022
March 7, 2022 | Posted by: Ron Chan
There's a lot going on as we enter the second quarter of 2022 when it comes to the Winnipeg real estate market. And now that you've shaken off the dawn of the year, you're ready to move forward with your plans to buy a home. Let's take a look at how current events may impact your decision as to when to get a mortgage. Should you act now, or wait a little longer? Let's review.
Recent Developments in the Winnipeg Real Estate Market You Need to Know About as of March 2022
Bank of Canada Raises Overnight Rate for the First Time in Over 2 Years
We've been asking prospective buyers to get ready for this over the last 6 months. Last week we delivered the news that the Bank of Canada raised the overnight rate from .25 to .5 percent. On paper it looks like the 100% increase is dramatic, but in the same news release we included a chart that shows that everyone should put the increase in perspective. In nearly 90 years, the Bank of Canada's overnight rate remains to be at one of its lowest points in history. Here's a look at where it's at since 2008 (source: Reuters):
If you've been following our blog, then you know that the overnight rate has a direct impact on variable mortgage rates. Have they gone up? At press, they still sit at a very favorable level. Big Banks (TD, etc.) are advertising variable rates in the 1.8% range this week, while they're offering 5-year fixed rates (impact by Bank of Canada bond activity) at around 3.24%.
While variable and fixed mortgage rates are still very enticing to new buyers, they may not be as appealing in a few short months from now. This is because the Bank of Canada is expected to keep increasing the overnight rate as the months of 2022 progress. While the increases (if they occur) will be incrementally small, it will begin to make a financial difference in the grand scheme of your future mortgage. We encourage you to get pre-approved for a mortgage as soon as possible.
Prices Predicted to Keep Rising
In our last Winnipeg real estate news update we indicated that as inventory gets leaner, prices of desirable homes will continue to rise. The final nails haven't been hammered into new construction quite yet. When they do, inventory will open up and prices will level out. Until then, it will be important to act quickly. The Manitoba Real Estate Association predicts that the average home price will increase by 3.5% to an estimated $322,859. While this is significantly lower than prices in nearly all other Canadian housing markets, the MREA is recommending that prospective buyers lock into a fixed-rate mortgage before further increases.
Get pre-approved on a Winnipeg mortgage and contact Ron Chan at 204.290.9950 to get access to lower unadvertised borrowing rates and more favorable mortgage terms.
