Winnipeg Area Home Sellers and Home Buyers Preparing for Spring
What is significant about Springtime in the Winnipeg Real Estate Market?
Property experts are predicting a rush in the Manitoba property market this Spring, and this could translate into a spike in sales.
This is mostly nothing new – there’s a historic precedence around this time of year; the trend is a big rush in activity in the Real Estate market.
If you’re selling your house this is good news as average home prices typically rise around 10% this time of year. And supply is still low in Manitoba still, which keeps Winnipeg property values buoyant.
The higher prices will quell demand however. But there are other factors at play that will see the Spring peak come down from declining demand.
New mortgage rules will make qualifying for a mortgage harder, for first time buyers. This may put them off buying at all for the time being or could force them to look at downgraded property types or areas that are in much lower demand.
Because of these new mortgage rules, there is a potential for one-third of prospective buyers seeing themselves become ineligible for a mortgage. This will have a direct impact on house supply and demand.
Other changes have also come about – for instance should a mortgage default, who would cover the loss? It used to be the insurance provider, that lenders historically used to cover high value loans. But new rules are shifting the burden of defaults back to the lenders, at least partially. Partly because the ultimate payer of insurance was the taxpayer, and because home loan insurers were funded by the government. This shift in burden will ultimately mean less risk appetite for lenders, meaning more scrutiny over applicants, less loan eligibility and less loans approved
This will impact on buyers, the property market and sales.
So, as we are headed for potential peak Winnipeg real estate sales this Spring, and a potential decline thereafter due to the new Mortgage rules, which could ultimately be reflected in the price of your home.
Whether you are thinking of buying or selling this Spring, Contact us today.
Attention Sellers: book your Free Home Evaluation with us!