Is Now A Good Time To Buy A Home In Winnipeg?

At least twice a week, I am asked, "Is now a good time to buy a house in Winnipeg?" Yes, the market may be slower than usual as rates are higher than in the previous few years. And yes, people are hesitant about buying, and many are sitting on the sidelines waiting for interest rates to drop. But there are several reasons why now is an excellent time to buy.

We have to stop thinking the rates will return to where they were during Covid. Sub 3% rates won't happen soon, and there's a good chance we won't see it again. Slowly, we will realize that this range is more the new 'norm,' and people will adjust to it. As people get used to living with these rates, home-buying will increase. When buying increases, home prices increase, as does your equity in your home. As this equity increases, it becomes a valuable asset.

Today's real estate market is unpredictable. By purchasing now, you can lock in your rate and avoid future rate increases. Rates are higher now than during Covid, but historically, they aren't that high. There were times in the past when rates were over 10%. By locking in now with a fixed rate, you create stability in your monthly payments, avoid rate increases and make budgeting easier with predictable mortgage payments.

The main reason why I tell people now is a good time to buy is because there is less competition in the market. There may be fewer properties on the market, but with many people waiting and hoping for rates to go down, that means fewer buyers and less bidding on houses. During Covid, houses were going for up to $200,000 over their asking price! So, although there may have been some savings with lower interest rates, buyers were paying some of the highest prices we have ever seen. Some houses are still getting over the asking price, but it is much less common today. It would help to know you can't time the market. There has been a dip in prices over the last few months, and many are waiting for it to keep dropping even more. That may not happen. If interest rates fall, there is a reasonable chance prices quickly jump again. During Covid, the stock market started to crash... 10%, 20%, 30%. Many people thought it would keep falling and took their money out. Out of nowhere, the market shot back up over the next couple of years, rocketed past its all-time high and has barely slowed down since. Those who took their money out and waited for it to drop more missed out on significant gains.

Finally, yes, rates are amoung the highest they've been in the past couple of years. They could go up a bit higher, but there are always opportunities in the real estate market. The market is made up of two sides: buyers and sellers. There are always deals to be had. Buyers can still find a fantastic home at a fair price by being careful and making logical decisions.