What To Expect In 2014 Province By Province: Manitoba

The gateway between Canada’s traditional manufacturing heartland and the newer resource sectors, Manitoba is changing in ways that are unlike many of the other provinces.  Whereas many regions across the country are seeing limited economic investments from the private sector, the ratio of private vs. public growth in Manitoba actually favours the private market.

The CMHC says that the Manitoba capital, Winnipeg is one of the best regions to invest in a home in today’s economy.  Do you think the timing is right for you to buy a home in the province?

Variable or Fixed Mortgage

Before you commit to investing in a home, you should identify whether a fixed or variable rate mortgage is in your best financial interests.  Many Manitobans throughout 2012 and 2013 opted to apply for fixed rate financing, with the ratio nearly 3 to 1 in favour of fixed over variable rate mortgages.

Canadians in general tend to be fiscally conservative, and prefer safer options when it comes to financing – including in Manitoba.  But you shouldn’t just follow the rule of thumb as laid out by statistics.  Before you apply for financing, take the time to compare the most affordable mortgage rates in Manitoba, and apply for a loan that makes you feel secure investing in a home will yield a great return over the long term.

2013

Similar to its sister Prairie Provinces, Manitoba performed stronger economically than the 2013 national average, finishing the year with the third lowest unemployment rate in Canada.  The number of people who migrated to Manitoba grew by approximately 5,000 compared to 2012, and many were able to find sustainable jobs.

The province’s agricultural, manufacturing, and retail sectors are sustainable, with capital investments from business providing opportunities to expand.  This expansion helped people fill vacant jobs, maintain strong spending habits, and invest in new homes.

The number of new housing starts in 2013 slowed in comparison to 2012, particularly in single detached homes.  Sales of traditional housing units declined year over year as many Manitobans hunted for multiunit properties like condos, in Winnipeg and other urban centres.  The value of building permits across Manitoba also increased approximately 12 percent, the second highest gain in Canada.

Home Price Predictions 2014

In the second half of 2013, buyers in many areas across the province were interested in new homes rather than existing properties.  This was most obvious in the bigger cities, where condos and multiunit homes were the principle housing starts built in the regions – and later snapped up by eager buyers.

Many Manitoban homebuyers are younger, who are entering the market for the first time.  As a result, many realtors as well as economists affiliated with the CMHC, predict the largest volume of home sales will be for properties averaging between $150,000 and $250,000.

Sales in 2014 are expected to match figures from 2013, with the rate of net sales rising near the end of the year.  However, prices are expected to rise above $260,000, though that higher average in Manitoba remains over $100,000 below the Canadian average.

Winnipeg

The provincial capital is the housing and economic heartland of Manitoba, which the CMHC says is one of the healthiest markets in all of Canada to become a homeowner.  Winnipeg finished 2013 with one of the strongest Decembers for housing in the city’s entire history – if you don’t mind the cold.

Total home sales in the city finished 2013 around 13,000 units for the third straight year, and economists forecast the same in 2014.  The city budgets around 2,000 new investments in multiunit homes, particularly condos that highlight the Winnipeg skyline.  If you are a first time buyer or planning to downgrade your home, Winnipeg is an excellent place in Manitoba to settle down.

The Winnipeg economy is growing, providing thousands of people stable jobs to afford decent homes.  The economic forecast for 2014 is a positive one, which will make the average asking price of $275,000 a realistic price point for many would-be buyers.

Brandon

Brandon is the second largest city in Manitoba, and is located in the southwestern portion of the province opposite Winnipeg in the southeast.  However, MLS sale prices as of the end of 2013 averaged around $200,000, slightly below the average in Winnipeg.

But unlike Winnipeg, which closed the year on a very strong standing, total sales in and around Brandon began following in November and December of 2013.  The CMHC forecasts sales will continue to be sluggish in the first quarter of 2014, which over the long term could lower prices to more affordable rates if you are willing to wait until the summer.

Thompson

One of northern Manitoba’s better known communities is Thompson, which is surrounded by many of the province’s small lakes and rivers.  The population is slightly over 13,000, but also contains a functional trade centre that allows Manitobans to commute in and out of the community.

If you live in or are relocating to Thompson, there are opportunities to buy as prices last year averaged just under $190,000.  But prices are very inconsistent across the community on a month by month basis, primarily due to the low volume of sales in the community, which averaged less than 10 units each month. 

As a result, prices were prone to fluctuate upwards of $150,000 depending on the month that a home was sold.  Economists forecast similar volatility across the north in 2014, though values will continue to climb with support from the trade centre.  Be sure to keep in mind that timing could be everything if you plan to buy a home within Thompson or other northern communities in Manitoba.

Closing Thoughts

The CMHC forecasts that the southern half of Manitoba will continue to be a very vibrant housing market throughout 2014 and onward, particularly in Winnipeg and the surrounding areas.  The southern market is a healthy balance of supply and demand, which offers you many choices to find an affordable dream home with low borrowing costs.

The northern half of the province is less consistent primarily due to the lesser volume of activity.  But if your plan is to live away from the more metropolitan communities, there are many communities to choose from. 

With mortgage rates remaining below historic norms, financing a home investment will be of little hassle.  But remember to consult a local realtor or expert on your selected community – they may see an opportunity to buy at a lower price only a few months down the road.