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New property listed in Winnipeg

I have listed a new property at 1362 Dominion Street in Winnipeg. See details here

5C//Winnipeg/Showing starts now! Offer to be presented as received. LOCATION! LOCATION! LOCATION! Welcome to this cute character home in Sargent Park Neighbourhood! This bungalow features 2 beds, 2 baths, hardwood floors in mainfloor, fully finished basement with 2 extra rooms. Good size recreation room with a decorative fireplace, vinyl plank flooring. Fully fenced spacious yard with single car garage currently used as storage. Very convenient location, close to schools (K-12), supermarkets, transportation, restaurants, mall, etc. Perfect starter home! Budget friendly. Early possession available. Act fast! Book your appointment NOW! (id:2493)

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New property listed in Winnipeg

I have listed a new property at 411 Cumberland Avenue in Winnipeg. See details here

9A//Winnipeg/WHY PAY RENTS "Super affordable downtown 1 BED ROOM CONDO. Condo fees include most expenses such as heat, hydro, water, basic cable TV, caretaker, 24 hr. security, property management and snow removal. Appliances included. This condo complex offers elevator service, guest parking, party room and extra storage. Located in the heart of downtown, easy access to transit, walking distance to Movies, University of Winnipeg/Red River Community Center campuses, Health Sciences Center, MTS Center, YMCA, Portage Place and all levels of schools, Public park/green space across the street. Students, first time buyers or investorsDir/GPS: (id:2493)

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New property listed in Winnipeg

I have listed a new property at 444 Larsen Avenue in Winnipeg. See details here

3A//Winnipeg/Showing starts Sat, Jan 28., OPEN HOUSE Sun, Jan 29 (12 -2 PM) OFFERS ANYTIME! PRICED TO SELL! Come check this well maintained home in East Kildonan. Features 4 Bedroom and 1.5 Bath, with stainless kitchen appliances, lots of upgrades such as High Efficiency Furnace (2022),Centralized AC ( 2021), Fridge (2021) Dryer (2022), Vinyl Flooring (2018) ,newly installed fence on the front (2022) and many more. Perfect for first time homebuyers, growing family or for rental and investment purposes. You should not miss this one, the house has a lot to offer! Call and book an appointment now! Some rooms +/- jogs. (id:2493)

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New property listed in Winnipeg

I have listed a new property at 105 South Town Road in Winnipeg. See details here

1R//Winnipeg/Showing starts now! Offer to be presented as received. Beautiful Condominium Project in the Centre of Bridgwater called the "RISE CONDO"! Built in 2022, this popular Ascent Plan has 900 sqft with 2 rooms and 1 bath. It includes an underground parking. It has an open concept layout. The eat-in-kitchen with peninsula and bath have quartz counters, soft close doors/drawers, kitchen appliances included, vinyl plank flooring, a balcony and more! This project features an outdoor swimming pool, lounge and fitness room. You'll gonna love this active community, enjoy the walking paths, bike trails and the gym, Altea active which is just across the street. Commercial establishments, restaurants, shops and stores are just steps away! Very convenient location, close to bus routes, schools and University of Manitoba. A must see! (id:2493)

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January-2023-MVP-Blog-Post-Image

Last year, one factor drove the real estate market more than any other: rising mortgage rates. 

In March 2022, the Federal Reserve began a series of interest rate hikes in an effort to pump the brakes on inflation.1 And while some market sectors have been slow to respond, the housing market has reacted accordingly.

Both demand and price appreciation have tapered, as the primary challenge for homebuyers has shifted from availability to affordability. And although this higher-mortgage rate environment has been a painful adjustment for many buyers and sellers, it should ultimately lead to a more stable and balanced real estate market.

So what can we expect in 2023? Will mortgage rates continue to climb? Could home prices come crashing down? While this is one of the more challenging real estate periods to forecast, here’s what several industry experts predict will happen to the U.S. housing market in the coming year.


MORTGAGE RATES WILL FLUCTUATE LESS

In 2022, 30-year fixed mortgage rates surged from roughly 3% in January to around 7%. According to Rick Sharga of real estate data company ATTOM, “We’ve never seen rates double in so short a period.”2

This year, economists forecast a less dramatic shift.

In an interview with Bankrate, Nadia Evangelou, senior economist for the National Association of Realtors, shares her vision of three possible mortgage rate scenarios:3 

  1. Inflation continues to surge, forcing the Fed to repeatedly raise interest rates. In that scenario, she predicts that rates could reach as high as 8.5%.
  2. Inflation decelerates and mortgage rates follow suit, averaging 7 to 7.5% for the year.
  3. Rising interest rates trigger a recession, which could ultimately lead mortgage rates to drop closer to 5% by the end of the year.

Realtor.com forecasts something similar to scenario #2 above: “Mortgage rates will average 7.4% in 2023, trickling down to 7.1% by year’s end.”4 The Mortgage Bankers Association, however, projects something closer to Evangelou’s scenario #3, with the 30-year fixed rate declining steadily throughout the year, averaging 6.2% in Q1 and 5.2% by Q4.5

Economists at Fannie Mae fall somewhere in the middle. In a recent press release, they predicted that the U.S. economy will experience a “modest recession” this year.6 But in their December Housing Forecast, they project that 30-year fixed mortgage rates will only fall by half a point from an average of 6.5% in Q1 to 6.0% in Q4.7

“From our perspective, the good news is that demographics remain favorable for housing, so the sector appears well-positioned to help lead the economy out of what we expect will be a brief recession,” said Fannie Mae Chief Economist Doug Duncan.6

What does it mean for you?  Even the experts can’t say for certain where mortgage rates are headed. Instead of trying to ”time the market,” focus instead on buying or selling a home when the time is right for you. There are a variety of mortgage options available that can make a home purchase more affordable, including adjustable rates, points, and buydowns—and keep in mind you can always refinance down the road. We’d be happy to refer you to a trusted mortgage professional who can outline your best options.


SALES VOLUME WILL FALL AND INVENTORY WILL RISE

It looks like the home-buying frenzy we experienced in recent years is behind us. While the desire to own a home remains strong, higher mortgage rates have made it unaffordable for a large segment of would-be buyers. 

Many economists expect the number of home sales to continue to decline this year, leading to an increase in listing inventory and days-on-market, or the time it takes to sell a home. But, there is a wide range when it comes to specifics.

Economists at Fannie Mae forecast that total home sales will fall by around 20% this year before rising again by nearly 15% in 2024.7 National Association of Realtors Chief Economist Lawrence Yun projects a less extreme dip of 7% in 2023 with a rebound of 10% next year.8

Realtor.com Chief Economist Danielle Hale foresees something in between. “The deceleration in home sales is likely to continue as high home prices and mortgage rates limit the pool of eligible home buyers. We anticipate that existing home sales will decline another 14.1% in 2023.” She expects this drop in sales to lead to a nearly 23% increase in inventory levels this year, offering more choices for buyers who have struggled to find a home in the past.9

However, given the severe lack of housing supply, even with a double-digit increase, the market is expected to remain relatively tight and below pre-pandemic levels. Hale points out: “It’s important to keep historical context in mind. The level of inventory in 2023 is expected to fall roughly 15% short of the 2019 average.”9

What does it mean for you?  If you’ve been frustrated by a lack of inventory in the past, 2023 may bring new opportunities for you to find the perfect home. And today’s buyers have more negotiating power than they’ve had in years. Contact us to find out about current and future listings that meet your criteria.

If you’re hoping to sell, you may want to act fast; rising inventory levels will mean increased competition. We can help you chart the best course to maximize your profits, starting with a professional assessment of your home’s current market value. Reach out to schedule a free consultation.


HOME PRICES WILL REMAIN RELATIVELY STABLE

While some economists expect home prices to fall this year, many expect them to remain fairly stable. “For most parts of the country, home prices are holding steady since available inventory is extremely low,” said Yun at a November conference.8

Nationally, Yun expects the average median home price to tick up by 1% in 2023, with some markets experiencing greater appreciation and others experiencing declines.8 Economists at Fannie Mae offer a similar projection, forecasting a slight decrease in their Home Price Index of about 1.5%, year-over-year.7

Other experts foresee a larger fluctuation. Hale expects U.S. home prices to rise by 5.4% this year, while Morgan Stanley is forecasting a 7% drop from the peak in June 2022.9,10

Still, many economists agree that a housing market crash like the one we experienced in 2008 is highly unlikely. The factors that caused home prices to plunge during the Great Recession—specifically lax lending standards and a surplus of inventory—aren’t prevalent in our current market.10 Therefore, home values are expected to remain comparatively stable.

What does it mean for you?  It can feel scary to buy a home when there’s uncertainty in the market. However, real estate is a long-term investment that has been shown to appreciate over time. And keep in mind that the best bargains are often found in a slower market, like the one we’re experiencing right now. Contact us to discuss your goals and budget. We can help you make an informed decision about the right time to buy.

And if you’re planning to sell this year, you’ll want to chart your path carefully to maximize your profits. Contact us for recommendations and to find out what your home could sell for in today’s market.


RENT PRICES WILL CONTINUE TO CLIMB

Affordability challenges for would-be buyers, inflationary pressures, and an overall lack of housing could continue to drive “above-average” rent price increases in much of the country.11 The Federal Reserve Bank of Dallas expects year-over-year rental price growth to tick up to 8.4% in May before moderating later in the year.12

According to Hale, “U.S. renters will continue to face challenges from limited supply and excess demand in the coming year that will keep upward pressure on rent growth. At a national level, we forecast rent growth of 6.3% in the next 12 months, somewhat ahead of home price growth and historical rent trends.”9

However, there are signs that the surge in rent prices could be tapering. According to Jay Parsons, head of economics for rental housing software company RealPage, there’s some evidence of a slowdown in demand. He predicts that market-rate rents will rise just 3.3% this year. Still, analysts agree that a return to lower pre-pandemic rental prices is unlikely.10

What does it mean for you?  Rent prices are expected to keep climbing. But you can lock in a set mortgage payment and build long-term wealth by putting that money toward a home purchase instead. Reach out for a free consultation to discuss your options. 

And if you’ve ever thought about purchasing a rental property, now may be a perfect time. Call today to get your investment property search started.


WE’RE HERE TO GUIDE YOU

While national real estate forecasts can provide a “big picture” outlook, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and drive home values in your particular neighborhood. 

If you’re considering buying or selling a home in 2023, contact us now to schedule a free consultation. We’ll work with you to develop an action plan to meet your real estate goals this year.


The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.



Sources:

  1. Forbes –
    https://www.forbes.com/advisor/investing/fed-funds-rate-history/
  2. Bankrate –
    https://www.bankrate.com/mortgages/will-mortgage-rates-go-up-in-december-2022/
  3. Bankrate –
    https://www.bankrate.com/real-estate/housing-market-predictions-2023/
  4. Realtor.com –
    https://www.realtor.com/news/trends/2023-the-year-of-the-homebuyer-our-bold-predictions-on-home-prices-mortgage-rates-and-more/
  5. Mortgage Bankers Association –
    https://www.mba.org/docs/default-source/research-and-forecasts/forecasts/mortgage-finance-forecast-dec-2022.pdf?sfvrsn=b584bf7_1
  6. Fannie Mae –
    https://www.fanniemae.com/newsroom/fannie-mae-news/economy-still-expected-enter-and-exit-modest-recession-2023
  7. Fannie Mae –
    https://www.fanniemae.com/media/45801/display
  8. National Association of Realtors –
    https://www.nar.realtor/newsroom/nars-lawrence-yun-predicts-us-home-prices-wont-experience-major-decline-could-possibly-rise-slightly
  9. Realtor.com –
    https://www.realtor.com/research/2023-national-housing-forecast/
  10. The New York Times –
    https://www.nytimes.com/2022/11/04/realestate/housing-market-interest-rates.html
  11. CNBC –
    https://www.cnbc.com/2022/09/28/how-much-higher-rent-will-go-in-2023-according-to-experts.html
  12. Federal Reserve Bank of Dallas –
    https://www.dallasfed.org/research/economics/2022/0816
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New property listed in Winnipeg

I have listed a new property at 699 Arlington Street in Winnipeg. See details here

5A//Winnipeg/looking for a house that ALL upgrades are done recently?check out this 3 bedrooms,2 full baths with BRAND NEW LIKE single garage.Upgrades are done in 2021-2022 only ,electrical, plumbing,shingles,interior and exterior paint, triple pane windows, flooring,soffit and fascia, dry wall, lightning fixtures, insulation,central air, high efficient furnace ,hot water tank ,kitchen, bathrooms,sump pump and pit. Foundation waterproofing and weeping tiles has 10 yrs transferable warranty.Fully fenced with sliding door.Close to Wellington School and Daniel McIntyre Collegiate. Bus 17,Bus 15 and Bus 12 , access .Few minutes to Superstore,Walmart,Airport and Downtown.Close to many restaurants and Tindahan Foodmart. (id:2493)

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New property listed in Winnipeg

I have listed a new property at 1240 Ellice Avenue in Winnipeg. See details here

5C//Winnipeg/Great visibility! Perfect office location! This unit is approximately 200sqft, near Polo Park and a beautiful community/neighborhood. It's a high-traffic area. The facility has a lawyer's office, real estate, tax preparation services. It is a great cross-business opportunity. Meet with your clients and customers here. It's a great place to start! (id:2493)

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New property listed in Winnipeg

I have listed a new property at 984 Sargent Avenue in Winnipeg. See details here

5C//Winnipeg/LOCATION! LOCATION! LOCATION! There are few office units available in this building. It has generous parking at the back, tons of storage space in the basement. Great visibility! High-traffic area! Fully remodelled. Grow your business here! Check this out! It won't last. (id:2493)

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New property listed in Winnipeg

I have listed a new property at 870 Ellice Avenue in Winnipeg. See details here

5C//Winnipeg/Great Office Space with a separate cozy kitchen area. This unit is about 1400 sqft, perfect for law, immigration or accounting firms. There are 2 residential suites upstairs which can be rented separately. This building is just across General Wolf School and can be an ideal site for day care center. This can be a good space for parlour/spa, retail, doctor/dental clinic, and the like. Great location with 5 commercial parking spots at the back. Tons of potential being in the central, the heart of Winnipeg. Very close to University of Winnipeg, Downtown, great for business visibility. Recently remodeled and has a modern appeal. Don't missed! Set your appointment NOW! (id:2493)

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New property listed in Winnipeg

I have listed a new property at 340 Aberdeen Avenue in Winnipeg. See details here

4A//Winnipeg/Offer anytime!!! Check out this beautifully remodelled ,spacious 3 bedroom bungalow,open concept with upgraded kitchen with stainless appliances ,high eff furnace , central air ,double garage ,2 baths .Close to school and bus stop. (id:2493)

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New property listed in Winnipeg

I have listed a new property at 870 Ellice Avenue in Winnipeg. See details here

5C//Winnipeg/Great Office Space with a separate cozy kitchen area. This unit is about 1400 sqft, perfect for law, immigration or accounting firms. There are 2 residential suites upstairs which can be rented separately. This building is just across General Wolf School and can be an ideal site for day care center. This can be a good space for parlour/spa, retail, doctor/dental clinic, and the like. Great location with 5 commercial parking spots at the back. Tons of potential being in the central, in the heart of Winnipeg. Very close to University of Winnipeg, Downtown, great for business visibility. Recently remodeled and has a modern appeal. Don't missed! (id:2493)

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New property listed in Winnipeg

I have listed a new property at 870 Ellice Avenue in Winnipeg. See details here

5C//Winnipeg/One bedroom residential suite on second floor furnished with kitchen appliances. Newly refinished hardwood floors and freshly painted. Laundry in building and parking is included in the rent. This location is just across General Wolf School. Perfect for a starter family. Close to all amenities. (id:2493)

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