What does the interest rate drop mean for the Winnipeg real estate market?

By: Realtor Scott Moore

As expected, the Bank of Canada cut the overnight interest rate this morning to 4.5%. This is the second drop in a row, meaning that rates have been dropped half a percent, from 5% to 4.5% over the last two announcements. These are the first drops in the last four years (last one was March 2020).

Tiff Macklem, Governor of the Bank of Canada, also indicated in this morning’s press conference that further rate cuts can be expected if inflation stays under control. The next announcement is scheduled for September 4th.

What does this mean for the Winnipeg real estate market? It means it’s about to heat up! 🔥

Higher rates have meant that both buyers and sellers have been holding off on making real estate moves. There is a lot of pent-up demand from buyers that have been waiting for multiple years—both new buyers, and existing homeowners that have been waiting to upsize or downsize. Now that rates are dropping, buyers will return to the market, and with more demand from buyers, competition for homes will increase and then prices will rise.

Buyers, we strongly encourage you to act now before the demand from buyers picks up. There are loads of great homes at reasonable prices in the market right now. Contact us and we will help you find one.

Sellers, don’t wait until prices rise and everyone and their dog decides to list their house. We saw this in 2022-- sellers who were first out once the demand rose did very well, but sellers that came to market on their own timeline did not do as well as they were part of a huge influx of inventory to the market, which settled pricing back down. Ideal timing to list your home would be right after either the August long weekend or the September long weekend.

For questions about buying, selling, or building in Winnipeg, please call us at 204 995-7355