Bank of Canada increases policy interest rate by 50 basis points

At our monthly meeting with the director, she reported the following statistics (in business days) for a landlord to be granted a hearing:

Claims – 68 days (down from last months timelines of 69 days, only by one day - however, seeing good progress across the board)

Order Of Possession For Rent Owing – 19 days (down from last month’s timelines of 26 days - good progress)

Order Of Possession For Other – 15 days (down from last month’s timeline of 18 days - good progress)

Tip:
Upper Edge was served an appeal from a case that occurred in 2013. We now have to appear at the Residential Tenancies Commission to try and defend ourselves from a tenant who claims they were never served for a claim back then. We shredded all of those files (our limit for keeping paper is 7 years) so now we might be in the position to have to pay back money to this tenant, we don’t manage the property anymore, and also have to waste time at this hearing…

Lesson from Garret, store everything electronically with regards to leasing, and tenants. Essentially, include all records in your filing to ensure you hold records beyond seven years and avoid a headache such as the above example.

- Provided by Garret Wong, Upper Edge Property Manager

When reviewing the WRREB* April stats, considering year over year stats of number of current active listings and number new listings coming to market still substantially low, with average price once again higher, Winnipeg market historically being very stable going back 50+ years, there's no obvious signs at this time of the market taking a major downturn.

Having said that, as a highly active realtor in the local market, I have noticed some situations where there are less offers on "offers date" for a home or even in the odd situation no offers; I believe this is at least partially due to the recent rise in inflation & interest rates (along with another half point increase by BOC (today on June 1, 2022). With that being said, we still continue to have a major inventory shortage, which thus far has outweighed inflation & interest rate hikes and held the strong sellers’ market we still see today.

If inflation and interest rates continue to rise, I foresee a gradual cool off in the market starting sometime over the next 6-15 months. Whereas, if inflation and interest rates stabilize by later this year, I foresee continuation of higher demand than supply in the Winnipeg Real Estate Market.

Analysts see inflation as one of the best leading indictors to predict how high the “next hike” will be from BOC. From what I’ve heard from analysts* on BNN, according to them, it’s most probable that the next interest rate hike in July will be 0.5%, second most likely scenario is that it will be 0.75% and least most likely scenario it will only be 0.25% - but that inflation will ultimately be a leading indicator of this.

*Disclosure:

1) This is only my personal opinion as a local real estate professional. None of this information is deemed to be accurate or reliable. Always consult a *Mortgage Specialist when making mortgage related decisions or a *Market Analysis when analyzing any market

2) For a more detailed report, please see the bellow link to April Market Report from *WRREB. This is by far the most insightful report you're going to find, as it is WRREB focus to compile, analyze and summarize all the data for it’s members & the public at large. https://www.winnipegregionalrealestateboard.ca/market-statistics/archived-market-releases/article/570/april-2022-sales-down-from-record-shattering-month-in-2021

- Provided by Nigel Nolin, 3% realty