Winnipeg’s housing market is starting to stabilize, but another interest rate hike is making it harder to buy or keep a home.
“It’s scary because we have a lot of clients who have mortgages that are coming due, you know…and now they’re going to hit that interest rate increase,” said financial advisor Doug Buss.
Buss said some seniors living on a fixed income are forced to downsize, move into a rental home or take out a home equity line of credit to get by.
For others, upsizing might be out of the question.
“People that were in their home thinking they were going to pay down this mortgage and move to a bigger family home? Their forever home…have decided, ‘We’re staying in this house. We’re going to make it work.'”
Buss also said first-time buyers are holding off.
“They can’t afford as big of a house. Before it was a $500,000 house. Now it’s $350,000. So even though their situation is the same, because of the new interest rate they can’t afford that bigger home.”
The Winnipeg Regional Real Estate Board’s November report noted home sales are down 30 per cent over last November and they’re 14 per cent lower than the five-year average.
At the same time, active listings have jumped 53 per cent since this time last year, although they’re still much lower than they were pre-pandemic.
“There is more inventory right now in the city, which opens the doors to the buyers, more options,” said Winnipeg Real Estate Agent Alberto Carmona.
Camona also noted changes in the market that point to stabilization.
“Some neighbourhoods (are) still very competitive for buyers and sellers, but overall, I will say it’s a buyer’s market. We are going into a buyer’s market right now.”
Carmona said 2023 might be the better year for real estate and the economy.