• Population: 742,400 (Stats Canada 2009)
• Major construction projects will have a positive affect on economic growth
• Wages to increase 0.6% in 2010 and 1.3% in 2011.
• Unemployment rates to average 5.5%, among the lowest in Canada.
• Increase in net migration expected with 9,500 people each year in 2010 and 2011.

Winnipeg Mortgage Rates Will Slowly Increase in 2010

The CMHC best case scenario, expect mortgage rates will continue to slowly increase in 2010 with a one year mortgage rate to be in the 3.6 to 4.8% range and the three and five year mortgage rates to be in the 4.2 to 6.7% range. In 2011, CMHC forecasts that the one year mortgage rate will be in the range of 5.0 to 6.0% whereas, the three and five year mortgage rate will be in the range of 5.6 to 7.2%. However, if the economy recovers at a faster rate than expected, mortgage rates may increase at a more rapid rate.

Winnipeg 2010 Housing Outlook

The CMHC believes that single starts will see a 13% increase in 2010 with 1,700 units. An additional 3% increase is forecast for 2011 single starts with 1,750 units. The New House Price Index is expected to rise in 2010 and 2011 after only seeing a 2.5% increase in 2009. The CMHC expects a 4% increase in both 2010 and 2011.

Multiple starts are also expected to increase in 2010 and 2011 with 900 units both years. The forecast of 900 units will be the highest annual production since 1988. Existing home sales for Winnipeg is expected to increase 4.3% in 2010 to 12,000 units and an additional increase of 2.1% to 12,250 in 2011. This forecast is the strongest existing home sales since 2007. The average resale price will increase 7.1% in 2010 reaching a price of $222,000. In 2011, an additional 3.6% increase is expected reaching a price of $230,000.

CMHC Winnipeg housing market & Winnipeg mortgage rate forecast

Source = CMHC
MLS = Multiple Listings Service
*Last updated January 2010