Winnipeg Real Estate News Updates - March 2023
March 8, 2023 | Posted by: Ron Chan
Spring break is upon us, and while that generally means students enjoy relief from their daily responsibilities, it seems that new home buyers and investors may enjoy a sense of calm as well. A couple of recent Winnipeg real estate news updates are making it so. Let’s have a look at what’s happening in the market at the moment.
Recent Developments in the Winnipeg Real Estate Market You Need to Know About as of March 2023
Bank of Canada Holds Interest Rate Steady for First Time in Almost a Year
In their first announcement of 2023, the Bank of Canada increased the prime rate (which impacts variable mortgage rates) by 25 basis points up to a high of 4.5%. During that announcement, they indicated that the hike could mark the end of increases for awhile. Canadian buyers and investors took that message with a heavy grain of salt. The Bank of Canada has been known to flip-flop from time to time, as everything they do is a reaction to the economy. But in some cases, this reactionary attitude works for buyers. This was the case this Wednesday March 8. Citing a slowdown in inflation (currently 5.92%) the BoC held the prime rate at 4.5%.
Moreover, according to the recent Reuters survey, the majority of the 32 economist respondents stated that the BoC would likely keep rates on hold through the end of this year. This is positive news for new buyers who desire a variable rate mortgage. While variable rates probably won’t drop much, they will more than likely either stay level for the near future, if not trend in a slightly lower direction. While those who prefer variable rate mortgages don’t mind a little risk, they (you?) won’t mind consistency amidst a fairly strenuous year of rate increases.
Take this recent Bank of Canada announcement as a win. It is.
Winnipeg Home Sales Down - Great News for Buyers
In February, we reported on the Winnipeg Real Estate Board (WREB) statement year-over-year home sales were down 16 percent from the previous year. It looks like this level will persist as average new home prices remain largely flat across Canada, Winnipeg included. In fact, Statistics Canada reports that most significant monthly decline in sales heading into March was seen in Winnipeg, with an additional 1.3% drop.
Sellers are left with no choice but to reduce their prices to encourage buyer interest, 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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