Winnipeg Real Estate News Updates - November 2022
November 21, 2022 | Posted by: Ron Chan
We opted out of the monthly Winnipeg real estate news update in October to make room for our seasonally themed articles (haunted mortgages and such), But now we're back to fill prospective buyers in on what's happening in the market as we prepare to wind down the year. Let's review!
Recent Developments in the Winnipeg Real Estate Market You Need to Know About as of November 2022
Bank of Canada Rate Hike / Announcement, and Impact on Mortgage Rates
We can't have a Winnipeg real estate news update without a Bank of Canada announcement. At the end of October the BoC announced of a 50 basis points (.5) hike. While it marked yet another increase in a succession of prime rate boosts, the .5 increase was actually lower than what many experts anticipated. While these increases reflect the Bank's strategy to curb inflation, a lower than expected increase is a sign of progress. We expect the cost of borrowing to plateau in Q2 of 2023, which is subsequently what is expected to occur for variable mortgage rates (which are tied to the prime rate).
Does the projection for 2023 infer that buyers should wait to get a mortgage until after the new year? Not necessarily. The year-end typically favors buyers. Sellers desire to unload their properties before the fiscal year comes to a close, and lenders also have annum-closing goals to meet. Both are more likely to give way on concessions and terms. And when you work with a mortgage broker, you will gain access to even lower than advertised mortgage rates. Lenders let brokers know exactly how far they can 'bend' on rates as the final quarter of the year comes to an end. Your broker will share the intel (and access) with you. Now that's a Holiday treat you can take to the bank!
Winnipeg Real Estate Sales Dropping Fast
Heading into November, Winnipeg real estate sales dropped 30% year-over-year. This is great news for buyers, as sellers will have to adjust pricing to unload their properties. This is even more true given that new construction (which began in early spring of 2022) in FINALLY catching up to fill the gap in inventory. As inventory grows, supply will exceed demand which will drives prices down even further. This places buyers in a bit of a 'sweet spot'. The 'getting' is relatively good at the moment, despite higher borrowing rates (variable and fixed). But when the Bank of Canada puts a cap on the prime rate in 2023, and demand gobbles up that new construction, prices for Winnipeg homes may increase accordingly. Get pre-approved on your mortgage this November/December and start hunting for your dream home this season, before it gets snatched up by another savvy buyer. Contact Winnipeg mortgage broker Ron Chan to get the ball rolling. Call 204.290.9950 for a friendly conversation.
