Winnipeg Real Estate Market - Boom or Bust?
Despite the downturn in the world economy and a leveling out of home values this year in Canada, the Winnipeg Real Estate Market has again remained strong in 2010. In fact, Winnipeg home prices keep rising.
It causes many of my clients to question why we have had such an exceptional market and what the future holds. Here are a few things to think about when we consider these questions:
Consider the Following Combination of Winnipeg Real Estate Market Influences:
1. Growing Population: Winnipeg population is outpacing the national average. This last year the population grew by approximately 13,000 with the high majority locating in Winnipeg. Stats Canada is predicting that Winnipeg will grow by an additional 70,000 people in the next 10 years.
2. Low Housing Inventory: the Winnipeg Real Estate market has had difficulty in keeping up to demand. Winnipeg housing construction has been lagging behind due largely to a shortage of building lots. Many of new home builders have targeted the large expensive homes while homes for the average middle class family remain in low supply.
2. Strong Local Economy: Winnipeg has a very diverse and mature economy that does not depend on any particular industry. As the auto, lumber, and finance industry went into a meltdown, Winnipeg remained strong due to it's diversity. Generally, Winnipeger's kept going to work and paying their bills as usual.
3. Affordable Housing: the Winnipeg Real Estate Market is, and has been, one of the most affordable housing markets in Canada. Even with the price increases in the last 10 years, Winnipeg still is less expensive than almost any other major city in Canada.
4. Low Interest Rates: clients are getting mortgage rates from 2% to 4% with excellent terms and amortizations that we could only dream of in the 1980's and 1990's. During the 1980's a rule of thumb was that mortgage payments were about $10 per thousand, today it is closer to about $4 per thousand. .... even with a 250% price increase the payment is about the same as it was in the 1980's on the same house.
5. Positive Outlook: the outlook for the Winnipeg Real Estate market remains optimistic. The conservative culture gives all of us a sense of stability and overall security that the Winnipeg Real Estate market bubble will not burst overnight.
So, is this still a good time to purchase a home in today's Winnipeg Real Estate Market? I'll let you decide, look at the stats, the trends, the current market conditions, as well as future projections and make your best decision. I invite you to give me a call. I'd highly value the opportunity to meet with you and discuss your real estate needs and wants.
You can contact me at: 204-989-5000; or visit my website at: www.winnipeg-homes.ca; or www.stevepenner.ca; or email me at: stevepenner@royallepage.ca. Also, feel free to leave your comments, I'd be interested in your thoughts about the future of the Winnipeg Real Estate Market.
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