Numerous people are expressing interest in buying a new home. Attendance at the Fall Parade of Homes had never been higher. However, as frugal Manitobans, we want to make sure that the timing is right and that we are optimizing when the best time to buy might be.
Consider the following rationale when making that decision:
It was only one generation ago (1981) when motrgage interest rates were over 20 per cent. Currently, a 5 year fixed mortgage is available at 4.35 per cent. It cost more to carry a $200,000 loan in 1981 than it does to carry a $500,000 mortgage today. They are also safe rates. Once again, the Canadian banking system was voted as the best in the world. There is no danger of us replicating the American situation.
Manitoba’s unemployment rate is one of the lowest in Canada. Our diversified economy ensures that even when one sector weakens, there is more than enough support from other areas to carry the economy. Our economy is strong and there are still shortages in numerous professions.
Home values in Manitoba have not depreciated for decades. Every year, homes have increased in value consistently. Market fluctuations have not impacted the value of your home. Saying that, one shouldn’t think of their home as a financial investment, but rather a lifestyle investment.
By choosing a new home in a newly developing neighbourhood, you are choosing new friends, schools and community clubs.
And, once again, Manitoba new homes were named as the most energy efficient in Canada. As well, since 1990, GHG emissions in Canada have increased 21.7 per cent. Over the same time period, the number of households in Manitoba has increased by 13.2 per cent. However, the energy efficiency of Manitoba homes has increased by 21.6 per cent. Between 1990 and 2005, GHG emissions in Manitoba homes have been cut by 31.3 per cent.
Homes built since 2001 require less than half the space heating energy of older homes, despite being larger in size. The Manitoba residential construction industry is proactive on energy issues, not reactive.
Winnipeg has the oldest housing stock in Western Canada and the third oldest in all of Canada, behind only Montreal and Halifax. New homes built in Winnipeg are built to last.
So, if you are considering the purchase of a new home but are wondering if the timing is right, there¹s no need to ponder any further. There has never been a better time to buy a new home. The time is now.
Mike Moore is president of the Manitoba Home Builders’ Association
