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Originally Posted by Authentic_City
Interesting read. I'm not sure that the decision to limit mortgages to 25 years has had a profound impact in Winnipeg, as compared to pricier markets. Condos are still pretty affordable for first time buyers compared to other markets. I just don't think there are many condo buyers in this market for a variety of reasons. And how much of the recent growth in condo construction in Winnipeg has been fueled by immigration? Are new international immigrants moving to Manitoba looking for a condo? I suspect the kinds of immigrants we tend to attract are looking for a family home.
The article also notes that rental vacancy rates are rising in Winnipeg. This might be a more troubling sign.
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Yeah, I'd agree with your assessment. It seems unlikely that the mortgage rule change has had a huge impact on Winnipeg, where we don't really have the same affordability issues as Toronto, Vancouver and Calgary. That said, if it has had any appreciable effect it has probably been more pronounced with respect to condos which are becoming a more common choice of first time homebuyers these days.
If anything, I'd say that the significant increase in condo construction over the last 10 years has outpaced the still somewhat tepid enthusiasm for condo living and urban living here. Unlike the three other cities I mentioned which have embraced condos wholeheartedly, it is still seen somewhat as a second-rate option here (even though Winnipeggers are warming up to the idea at least a bit).
So while this won't make a whit of difference in suburban areas that have seen a lot of condo development (Kenaston/McGillivray, S. St. Vital, Amber Trails/Maples), in some ways it does seem like ominous news for more central areas that are depending on multifamily starts as a means of revitalization. I'm thinking of Waterfront, the Exchange, downtown, West Broadway, St. Boniface.