Winnipeg Real Estate Market Boom Winding Down
May 17, 2022 | Posted by: Ron Chan
For the last two years, all anyone has heard about Winnipeg is how hot the real estate market is. It was great before the world got flipped on its rear, but the last 730 days or so have been unprecedented. Now that things are balancing out, and the Bank of Canada is no longer desperate to bolster spending, the real estate market in Canada has slowed down. Winnipeg, while always more resilient than the rest, is also experiencing a cooling trend. Is there anything to be concerned about? Not if you're a prospective buyer on the hunt for a home this summer. Below is what you need (and want) to know.
Why the Easing Real Estate Boom is Great News for Winnipeg Buyers on the Hunt for a Mortgage
Prices to Drop as Rates Rise
The Bank of Canada raised its Policy rate over their last two scheduled announcements, and will likely continue to do so through the rest of 2022. They have also altered their activity in the bond market. As a result, both variable and fixed rates have risen over the first and second quarter of 2022. On its own, that would increase the cost of getting a mortgage. However, the cooling trend in the Winnipeg market has a way of balancing out the cost of buying a home. At press, experts forecast a 10-20% price correction (read: reduction) in residential properties. So while the cost of borrowing may increase (which can be mitigated with the right broker) the prices of homes will fall. In Canada's most affordable real estate metropolises, it makes the buy-in nearly as favorable as ever. That said, we encourage you to get pre-approved right away to lock in rates before they get higher.
Inventory to Make a Comeback
Lack of inventory has been responsible for rising prices in Winnipeg. However, rising fixed and variable mortgage rates have slowed down buyer interest (but not your's) which will quickly balance out the supply and demand problem. Plus, there are a number of new construction projects underway at this very moment. Subsequently prices will ease. Sometimes economics really do work in your favor!
Now is the perfect time (for 2022) to get pre-approved on a mortgage. Ron Chan will effectively increase your buying power today (here's how) so that you'll be in an excellent position to buy a property this summer. Contact mortgage specialist Ron Chan today to take advantage of the unique period in the Winnipeg real estate market.
Call 204.290.9950 to Get Pre-Approved
