Winnipeg Real Estate News Updates - November 2023
November 7, 2023 | Posted by: Ron Chan
We’re in the final stretch of 2023 with just 7-weeks (at press) of the year left to make a number of financial decisions. Among these deliberations for a number of Winnipeg residents is in regards to homeownership. Should you move forward with a mortgage pre-approval before 2023 comes to a close, or wait until the first quarter of 2024 (or further down the calendar)? To help you make a decision you are combing through Winnipeg real estate news to see if there is anything occurring that should factor into your conclusion. Below is a succinct breakdown of what’s happening in the market thus far in November.
Recent Developments in the Winnipeg Real Estate Market You Need to Know About as of November 2023
Bank of Canada Holds Prime Rate at 5%
On October 25th the Bank of Canada announced that they would hold the prime rate steady at 5% while continuing quantitative tightening.
According to the Bank of Canada, reasons for not increasing the prime rate at this time include the following:
- Past interest rate increases have had the desired effect of dampening economic activity. As a result, consumption has eased, with limited demand for housing along with many goods and services. This has allowed the supply chain the opportunity to recover after experiencing two years of bottlenecking. Ultimately balance is being restored to the Canadian economy.
- Canada’s population growth is easing labour market pressures in some sectors.
So why didn’t the Bank of Canada reduce the prime rate, instead of holding it steady? There is still a lot of uncertainty in the mix that can impact those on Canadian soil, including the following:
- Despite prices easing in some sectors, underlying inflation persists.
- Oil prices remain high
- The war in Israel and Gaza has created geopolitical uncertainty.
A steady prime rate (which impacts variable mortgage rates) and continued quantitative tightening (which impacts fixed mortgage rates) infers that prospective home buyers should seek assistance from a mortgage broker. A longstanding broker will get buyers access to better mortgage rates through the following steps and will provide other forms of assistance to first time buyers. Call Winnipeg mortgage specialist Ron Chan at 204.290.9950 for a friendly conversation to discuss your options - no commitment necessary!
New Winnipeg Condo Development to Set New Rental Standard?
November launched with the grand-opening of a new 40-storey residential rental tower at 300 Main in downtown Winnipeg. The property, which is now officially Winnipeg’s tallest residential building, features nearly 400 units, a concierge with 24/7 onsite staff security, keyless entry, and large common-area lounge on the 40th floor that offers residents (and guests) access to a games room, kitchen, and other entertainment spaces. There is also a second-floor outdoor patio with barbecues, a pizza oven, fireplaces, and even a playground for pets.
While this new addition to Winnipeg’s landscape seems pretty exciting to renters, some are concerned about the impact that the new property may have on condominium rental rates in downtown Winnipeg. 300 Main rental rates begin at $1,910/month for one-bedroom units, and from $2,125/month for two-bedroom units. These rates tower above (pun intended) average rents in downtown Winnipeg which currently stand at $1,240 per month. Multi-residential property owners in the area will surely take notice and may capitalize on the now higher average and raise rents accordingly. This layer of uncertainty is enough to encourage longtime renters to finally consider condo ownership. Call Winnipeg mortgage specialist Ron Chan at 204.290.9950 to ask about programs that best apply to your current financial status.
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