Jeff Stern's Blog

What does the Government of Canada announcement mean for the Winnipeg real estate market? Yesterday, the announcement of reducing the amortization to 25 years from the precious 30 sounds horrifying for home buyers (first time especially) but lets look at the real facts:

-Prior to 2006, amortization was 25 years

-Interest rates are still at historic lows

-More homes entering the market are offering more choices resulting in less bidding-wars

-5% down remains unchanged

The media reports of the impact are likely very true for the overpriced markets like Vancouver and Toronto but Manitoanaya not over-valued and still amongst the lowest average price in Canada so it is reasonable to suspect that there will be little impact to prices in our local market.

While it is true that there will be homebuyers that were able to get a mortgage prior to the change, now likely to after July 9th it is likely that that will be a small percentage that will not but that should be a small number and many of those likely should never have been qualified nefore. For homesellers, keep in mind as we still have strong immigration that has in part fueled the vibrancy of our market and we have strong employment that should keep sales continuing.

While time will tell, in my over 20 years in the industry, and being a buyer and a seller before becoming a REALTOR(R), I have seen buyers and sellers markets and Winnipeg has always come out unscathed. This should be o different!

If you, or someone you know are looking at buying and/or selling a home, and are unsure of the impact this change may have on you personally, please feel free to call me at 204-946-5333, text me at 204-795-9600, email me at jeff@jeffstern.com or BBM me at 324BC448 to get pertinent information on your personal situation to,make an informed decision.