I couldn’t think a better way to describe it…
The beginning of this year saw soaring sale prices, monstrous bidding wars, and what appeared to be the abandonment of reason all together. But what was it really that drove the hot sellers market…? Cheap money. Historically low interest rates made highly leveraged mortgages very attractive for some. Others, just needing a place to live, having no choice to engage in bidding, simply to secure a home or get into the market. And all participating in a sort of “blind auction”, unique to Manitoba, to win a home, no less.
Today… aggressive interest rate changes from the bank of Canada have cooled markets dramatically. Particularly in the major metropolitans like Vancouver and Toronto. But what about our (comparatively) sleepy, predictable, slow and steady wins the race, Winnipeg?
Well, just that. Back to our pre-pandemic, predictable, slow and and steady wins the race type of market. A vast change from the mayhem of the pandemic’s sellers market, yes... but a healthy one. Homes selling for reasonable prices (still much higher than pre-pandemic) in reasonable time. A reasonable balance. A balanced market where cordial negotiations can take place, fair prices achieved, and all parties feeling they’ve come out with fair value.
Balance for resale homes. A tough go for new homes.
Great homes will perform very well. Average homes averagely, and poor homes… you get the idea. A market where the details count, preparing a home for sale will be paramount in achieving a great sale, and preparation is key. Gone the days of “throw it on the market and sell for more than asking in a week”.
Multifamily investments will be even stronger as some first time buyers will choose to rent longer and build their cash reserves.
A healthy influx of immigration, from countries abroad, and (quickly becoming) unaffordable large Canadian cities will continue to grow demand for homes, and rentals alike.
New home starts will be way down, as builders have sold most all thier inventory in the last two years, with possession dates well into 2024.
Infill homes in mature neighborhoods will continue to remain strong, as the demand for new luxury homes, in old luxury areas, have no shortage of buyers. Only a shortage of opportunities.
Expect a pre-pandemic market climate, but simply with higher prices, and a shortage of new homes starts and sales.
I for one, am looking forward to a time again, when experience matters, and planning and preparation is paramount. No “fly-by-night” agents capitalizing on a bull market, with little experience.
I think it is safe to say, we are tired. Not just from 2022’s real estate market, but this covid pandemic, all the mayhem around the world today, and all the heightened stresses in media trickling back to this sleepy little city, and us in turn. It’s time to come up for air, lest we drown.
We are all ready for a little more balance, and I feel, happy to bid this wild ride adieu.
Bobby
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