What is happening in the Winnipeg, MB Canada Real Estate Market? Where is it headed in 2023?

I recorded this video like a month ago and then just discovered it hadn't been posted. My bad - but the information IS still accurate! What is happening in the Winnipeg market or the Canadian Real Estate Market, you ask? Stay tuned as I delve into where I think things are headed in 2023!

I’m sure you’ve heard tons on the news that the real estate market in Canada has been all over the place in 2022… which is true. We’ve seen extreme highs – aggressive bidding wars, shortages of options, practically free mortgages because the interest rates were so low. Then, within an incredibly short period of time, we saw this flip upside down to where we now had escalating interest rates, not enough Buyers, and homes start sitting.

So, what is driving this change? You likely already have heard it on the news, but the Federal government has made multiple announcements about getting inflation under control. In a picture-perfect world, we would see annual inflation hovering around 2% and the Canadian Government usually targets to keep the inflation rates right around there – usually anywhere from 1-3% would be deemed to be within an acceptable range. What we saw starting in early 2021 was inflation well above 3% - and it has remained well above 3% ever since then hitting a peak of over 8% in June of 2022. The government is still trying to bring these numbers down and the quickest and easiest way to slow a real estate market is with policies or increased interest rates. We saw our most recent interest rate announcement just in October with a final increase anticipated in December 2022 (update - interest went up another 0.5% in December). The central bank has moved its benchmark lending rate up by more than 3 percentage points in the past 6 months.

If you look at the migration into Canada every year, we are still not building enough homes to keep up with our growing population. At the end of the day, what truly determines any market are the fundamental market economics of supply and demand. We have had a housing shortage in Canada for quite some time now, and this problem is expected to persist.

I truly believe we will continue to see these housing shortages. The population continues to grow and God ain’t making any more land. I think there is no harm in ever buying property if you plan to hold it for a long time. The interest rate on renting is 100% - you NEVER get that money back. It makes paying an interest rate of 7 or 8% seem much more attractive now.

I also think that 2023 will be a slow year, Canada-wide for real estate sales. However, I think as things calm down and we start to see interest rates stabilize, that we are going to see renewed confidence in the Winnipeg market. I believe that 2024 will start to see some return to a more normal market with increased buyer and seller confidence.

My thoughts!?
- One of the tried and true best bets to hedge against any market is in real estate investment. Don’t get left behind.
- We also have to understand the fundamentals of the market in Canada. We are the leading country in the G7 in immigration, with over 400,000 new immigrants every year. In the short term we will see a short drop over the next few months, but longterm, these numbers HAVE to go up. But keep in mind that right now the concern is not that people don’t want to buy or sell homes. They simply lack the confidence to do so.
-As a sidebar to this discussion – did anybody else notice the Canadian foreign ban on foreign nationals? There are of course some exceptions, but does anybody else think that they would impose this ban on foreign buyers if they thought there was a sufficient amount of affordable housing available? Again, one more indication that we DO have a shortage of available housing options.
- These are the times where if you are in the position to, to double down on investments. As Warren Buffet says, ““I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”
- Now is the time to double down on your investments – buy houses at a discount. BUT ONLY if you can hold for some time.
- What am I doing personally? I held off on buying any rental properties for much of 2022. You can bet that I will be out there buying more real estate!

Now keep in mind that everyone’s situation is specific and that I’ve made a fair number of assumptions. While there is no true crystal ball – I would say that anyone that plans to buy and hold property in 2023 will come out ahead in the long run. Always consult your financial advisor before making any money moves.

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📍 The Jennifer Queen Team and RE/MAX Professionals
📱 [phone]

[chuksokey]

Hello Jennifer thanks for the update on Winnipeg real estate information for early 2023. Meanwhile for an immigrant about to relocate to Winnipeg what would be your advise on the best location. Southern Winnipeg or Northern Winnipeg if there is any like. That. Kindly advise

[usamabotros]

Good morning, I am from Egypt may i ask if i have the chance to immigrate to Winnipeg, Canada I am 48 years old and i have family ( my wife and 3 daughters) and i have my own company here in Egypt, from 10 years ago our work is maintenance and rent photo copier machines, and i have 2 hundred thousand Canadian dollars, some of them cash and some is fixed assets? Thanks

[azza]

can a new comer buy a house or apartment with down payment?