Winnipeg Real Estate News Updates - December 2022
December 18, 2022 | Posted by: Ron Chan
Before everyone tucks away for the Holidays to focus on family, food, presents, and their favorite Christmas movies, there’s one more thing to check in on - Winnipeg real estate news updates. Households in the market may be waiting for the new year to begin before buying a home, but there are current events that may encourage you to at least get pre-approved on a mortgage as soon as possible. Let’s review!
Recent Developments in the Winnipeg Real Estate Market You Need to Know About as of December 2022
Final Bank of Canada Rate Hike of 2022
The Bank of Canada announced an increase in the prime rate by .50 percent on December 7/2022. By looking at the chart above (courtesy of the Bank of Canada) you can see that the rate has been on the rise since March. That said, the increases have been on a proportionate decline since July (when it jumped by a whopping 1-percent), with a dup of 50-basis point hikes to wind down the annum.
The hikes are a federal response to persistent high inflation around Manitoba, Canada, and the world as a whole. The BoC raises the cost of borrowing money to curb the demand for goods and services. In reducing demand, supply increases, and prices subsequently fall.
Based upon what we’re seeing, should buyers wait until the next prime rate announcement on January 25/2023? There is a risk in doing so. The way to pattern is, you could be faced with yet another hike to a target rate of 4.5%. If so, your cost of borrowing will likely increase as variable mortgage rates move in the same direction as the federal prime rate. Some speculate that the prime rate has now hit its plateau. To b honest, this is equally likely. And if the latter occurs, does it not make sense to just wait until 2023 to proceed with a mortgage? Not necessarily. Keep reading!
Prior Drop in Sales Has Sparked New Interest
In last month’s Winnipeg real estate news update, we reported on a 30% drop in year-over-year sales. As per economic law, this immediately renewed interest in homes as sellers drop year-end prices to sell before the fiscal year comes to a close. Experts are already weighing in, forecasting a subsequent drop in the price of condos in 2023 as well. The median price of a Winnipeg condominium is forecast to fall to just over $234,000. With renewed interest in affordable desirable homes, buyers who wait to hit the market will have lower inventory to choose from. We encourage you to act now.
That’s all on the Winnipeg real estate news front before the Holiday break! Contact Ron Chan today at 204.290.9950 to get pre-approved and/or to ask any questions you may have about getting a mortgage.