Winnipeg Real Estate News Updates - February 2023
February 21, 2023 | Posted by: Ron Chan
We’re midway through the first fiscal quarter of 2023, which means that it’s time for your first Winnipeg real estate news update of the annum. Home buying season in Winnipeg (spring and summer) is upon us, and if you’re among the new wave of prospective home buyers, you may be wondering if there is anything to know that may impact the timing of your purchase decision. Let’s find out!
Recent Developments in the Winnipeg Real Estate Market You Need to Know About as of February 2023
Bank of Canada Update and Projection
We admit that the following headline is getting VERY repetitive:
“Bank of Canada increases policy interest rate by ## basis points, continues quantitative tightening.”
It has been the consistent theme with all Bank of Canada announcements over the past year. In the most recent one (January 25) the number “25” filled in for the ## symbols, brining the overnight rate to 4½%. Not a great way to begin the new year for prospective buyers. However, the projection is now a lot more positive. After an annum of persistent increases, the Bank of Canada themselves have stated that this may very well be the last increase for awhile. Assuming that inflation levels continue to improve (believe it or not, they are improving) the next announcement on March 8th may be uneventful in a good way. This is good news for the near one-third of Canadian mortgage holders who have a variable rate mortgage. They may see their payments even-out or come down in the months ahead.
Either way, a greater number of prospective buyers are focusing on fixed mortgage rates, preferring stability over uncertainty, even if it results in higher payments over the long term.
Winnipeg Home Sales Down - Great News for Buyers
There is one great silver-lining to the mortgage rate increases of 2022. It has resulted in a significant slow down of home sales early in 2023. If you recall, Winnipeg real estate inventory was very slim early last year. This drove up prices and priced some buyers out of the market, despite Winnipeg having some of the most affordable real estate in the nation.
How slow are sales so far? The Winnipeg Real Estate Board (WREB) reports that last month’s sales were down 16 percent from the previous year, and down 19 percent from the five-year average. As a result, some sellers will reduce their prices to encourage buyer interest - a trend that we’re already seeing in many markets across Canada. This balances out the recent rate increases, making it a good time to enter the market.
If you’re ready to talking about getting a mortgage in the greater Winnipeg area, contact mortgage broker Ron Chan today.
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