Manitoba Real Estate Outlook

The TD Bank Financial Group released its April 2008 TD Economic Special Report and said that for the year 2008 and early to middle 2009, there will be a "cooling" of Canadian real estate market. The previous period when property, particularly home, sale and resale have gone up induced a current increase in new home construction activity, slow down in the increase of home prices and interest rates, and a more stabilised demand and supply for homes. The other factors that contribute to the effects are weaker local economic performance and a fast increase in home prices.

With the new home real estate Manitoba contractors are building, there is lesser demand for homes. More people may even consider purchasing the home type real estate Manitoba offers instead of just renting houses, apartments and condominiums.

Until when might interest rates for Manitoba real estate be low?

It is anticipated that the Bank of Canada will lower interest rates for the whole of 2008 and until the onset of year 2010. By then, the interest rates for Manitoba real estate will again increase. The TD Economics Special Report also projects a 2.5 to 5.4 percent increase in Manitoba real estate prices during the next two years and a decrease in the number of available housing.

Advice for buyers of real estate in Manitoba:

If you are planning to buy a real estate in Manitoba, particularly a home during this year or the next, take advantage of the low interest rates. It is always better to save the money that you will not spend to be ready for the predicted interest rate increase in 2010. Also, consult your real estate agent or financial advisor before closing deals for real estate in Manitoba.