Winnipeg Real Estate News Updates - July 2022
July 6, 2022 | Posted by: Ron Chan
The mosquitos are out in full force, which means that it's summertime in our neck of Manitoba. But the other thing buzzing around your ears in the vicinity is the Winnipeg real estate market, especially if you're on the hunt for your very first home. Is there anything you need to know before getting pre-approved on a mortgage this month? Let's review.
Recent Developments in the Winnipeg Real Estate Market You Need to Know About as of July 2022
Putting Bank of Canada Rate Increases in Perspective
The Bank of Canada raised its policy rate by 0.5% in its most recent two announcements. This has caused variable mortgage rates in Winnipeg (and across Canada) to increase. If you've been shopping around then you've seen the big banks (BMO, CIBC, RBC, TD, etc.) advertise variable rates at around 3.25%. You may also know that the Bank of Canada has another policy rate announcement coming up next week. Some experts are predicting that it will align with the US Federal Reserve’s recent benchmark rate hike of 0.75%. We’ll update you here on our Winnipeg real estate blog when the Bank of Canada makes their July announcement. What we want to draw you attention to today however, is the fact that you should not delay your plans for buying a home. In other words - put the Bank of Canada Rate increases in perspective. Have a look at these two charts for variable and fixed rates (via RateHub):
Let's begin by looking at variable rates (top chart). As you can see, rates are essentially the same as they have been over the last decade. The swift dip that occurred (lowest rates of all-time) between 2020-2022 was an aberration caused by government reactions to the pandemic. And when you compare 2022 rates to the earlier half of the charted period, you can see that you're in a much better position to buy a home than your predecessors. Fixed rates (bottom chart) are also more favorable than they have been throughout recent history (2020-21 excluded). When you put it all in perspective, July of 2022 remains to be an ideal time to enter the Winnipeg real estate market. This is particularly true if you work with a mortgage broker who can get you access to lower unadvertised rates, and connect you to first-time buyer incentive programs.
Don’t let the media scare you away from buying your dream home. July of 2022 is still a good time to become a homeowner in the greater Winnieg area.
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.
