Winnipeg Real Estate News Updates - August 2023
August 12, 2023 | Posted by: Ron Chan
It’s August, which in the Canadian real estate market marks a time when buyers express renewed interest as the traditional housing price peaks of June and July begin to subside. But is that statement even true in 2023? Moreover, is there anything else buyers need to know before getting pre-approved on a mortgage? Let’s review.
Recent Developments in the Winnipeg Real Estate Market You Need to Know About as of August 2023
Bank of Canada Increased Rate to Highest it’s Been in Over Two Decades
On July 12th, the Bank of Canada raised the interest rate from 4.75% to 5%. Canada hasn’t seen the prime rate that high since 2001. This is the second increase of the “summer” season, which continues to go against their spring announcement that gave every indication that they would hold the rate steady for the foreseeable future, if not at least through Q3 of 2023. Apparently the economy hadn’t stabilized as much as they thought it would. Canadians can’t help but wonder if the tactic of increasing the prime rate is really that effective in managing inflation. That being said, inflation rates did indeed drop, falling to a 27-month low of 2.8% in late July. But apparently we’re not out of the woods yet. The Bank of Canada has its sights set on a 2% inflation rate. Does this mean we can expect another rate increase on September 4th when they make their next announcement? We don’t think so, as anything higher than 5% will certainly shake consumer (home buyers included) confidence. The best buyers can hope for is for the rate to maintain at 5% for the remainder of 2023. In other words, don’t delay getting pre-approved on a mortgage any longer. Doing so only places you further away from your goal of building real estate equity.
Winnipeg Home Prices Stabilize and Normal Trends Return (Finally!)
High interest rates may make buyers uneasy, but they (you) find peace of mind in the fact that the median price of single-family detached homes in Winnipeg decreased 1.5 percent year-over-year to $426,700. Meanwhile, the median price of a condo remained flat at $253,100 during the same period. Winnipeg remains to be the best metropolitan city in Canada to buy a home when it comes to pricing.
More importantly, experts suggest that after a wild couple of years in the market, Winnipeg real estate trends have returned to normal seasonality. For the remainder of the summer you can expect home prices to remain stable.
At the very least, our mortgage brokerage recommends that you get pre-approved on a mortgage today. Variable rates may seems a little scary at the moment, and fixed rates are higher than you may like, but the right broker will find a program that works best for YOU. For example, many buyers are looking to short term fixed mortgage rates as the answer. Give Winnipeg mortgage specialist Ron Chan a call for a friendly conversation to discuss your options - no commitment necessary!
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