The Best Mortgage Rates in Winnipeg

Winnipeg Key Stats

• Winnipeg population (2011): 663,617
• Dwelling units (2011): 280,489
• Unemployment Rate (2012): 5.8
• Employment Level (2012): 413,300

Source: Stats Canada, CMHC

Winnipeg Mortgage Rates to Moderate in 2013

Mortgage rates are expected to remain at historical lows for the first portion of 2012 before moderating later in the year. The CMHC forecasts that the one-year posted mortgage rate will be within the 3.1 to 3.6 range, with five-year posted rates in the range of 5.0 to 5.4 per cent. Rates are expected to rise in 2013 to 3.5 to 4.1 per cent for one-year, and 5.1 to 5.6 per cent for five-year mortgage rates.

Source: CMHC

Winnipeg 2012 Housing Market Outlook

Winnipeg experienced a resurgence in job creation over the past year, with a year-over-year increase in the first quarter of 2012 of 1.8 per cent to 7,300 jobs. The shifting trend from part time to full time employment is expected to continue into this year, and increase by 1.1 per cent in 2013. The economy will also be supported by a six per cent increase in manufacturing and improved economic performance in the U.S., Manitoba's major export market.

Demand for new homes will remain strong in the years to come, especially with existing home owners looking to move up to higher price points within the resale market. A relatively low number of available listings makes new construction options an attractive possibility for buyers. This, along with record low mortgage rates and strong migration, support anticipated gains to 2,075 starts in 2012, and 2,150 in 2013, the second-highest total since 1988.

Single detached starts are to increase to 2,075 this year, up from 2,002 units in 2011. This is to rise further still to 2,150 in 2013. Multi family starts are forecasted to increase to 1,435 this year, from 1,329 in 2011, and to remain flat at 1,450 in 2013.

Resale units are forecasted to increase moderately to 12,400 units in 2012 from 21,297 units in 2011, and to increase to a resale price of $252,500 from $241,408 in 2011. This is also expected to increase to 12,600 units in 2013 at an average price of $262,000.

Source: CMHC Housing Market Outlook

Winnipeg Housing Market & Mortgage Rate Forecast

• 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