Buying a home is the biggest expenditure you’ll likely ever make. And given the rising home prices throughout Canada, having a solid grasp on your finances is a must to comfortably handle such a major investment.
If you’re thinking of buying a home in Manitoba, you should take the time to find out what the going price is throughout Manitoba to better budget and save for a down payment.
What Is The Average House Price In Manitoba?
The price of a house will vary quite a bit from one end of the country to the other. The current average house price in Manitoba sits at $328,654, which is a decrease of -0.7% from last year.
| Home Prices 2024 | Year-Over-Year % Change | |
| Canada | $659,395 | 7.6% |
| Manitoba | $351,305 | 10% |
| New Brunswick* | $287,900 | 7.1% |
| Ontario | $821,624 | 0.6% |
| Prince Edward Island | $341,200 | 1.0% |
| Newfoundland and Labrador* | $288,000 | 4.3% |
| British Columbia | $960,433 | 10.8% |
| Alberta | $471,887 | 12.4% |
| Saskatchewan* | $319,600 | 1.0% |
| Quebec | $492,735 | 9.4% |
| Nova Scotia* | $389,000 | 2.1% |
*based on MLS HPI benchmark prices
What Factors Affect The Average House Price In Manitoba?
Several factors influence the price that you’ll pay for a home at any given time:
- Mortgage interest rates – A lower interest rate will make mortgages more affordable. This increases the demand for housing and drives prices up.
- Housing supply – When there are more buyers on the market than homes available for sale, prices go up. But when there is ample inventory compared to buyers, prices can stagnate.
- Location – A key factor when it comes to the value of a property is its location. A desirable neighbourhood will command higher home prices compared to less attractive neighbourhoods.
- Size of the home – In general, larger homes are valued higher than smaller ones, though many other factors come into play that can affect a home’s value.
- Age and condition of the property – Newer homes are less likely to require maintenance and repairs than older homes, which usually makes them more valuable, with certain exceptions. Plus, modern materials are more in demand, which can also contribute to higher prices compared to older homes in poor condition.
- Characteristics – Certain traits can add value to a piece of real estate, like hardwood flooring, stone countertops, style of home and landscape.
- Unemployment rates – Low unemployment rates mean more people are working. And when people are bringing in a regular income, they have more money to spend on things like real estate. In this case, demand for real estate will increase, which can drive home prices up.
Can You Afford An Average Priced House In Manitoba?
You can quickly estimate how much you can afford in Manitoba by calculating your gross debt service (GDS) and total debt service (TDS) ratios.
- Your GDS represents how much of your gross annual income will be dedicated to paying housing expenses, like mortgage payments (including principal and interest), utilities, and property taxes.
- Your TDS represents how much of your gross annual income will be dedicated to covering all your debt payments combined.
GDS ratios should be no more than 39% of your gross annual income, and TDS ratios should be no more than 44% to be approved for a mortgage.
Other House Costs In Manitoba
Your mortgage will certainly be the biggest monthly cost in terms of homeownership. But there are plenty of other costs that you’ll need to cover to operate your home, and these expenses should be included in your budget. Additional costs can include:
- Property taxes
- Home insurance
- Utilities
- Closing costs
- Repairs and maintenance
- Condo fees (if applicable)
- Renovation costs
Make sure that you leave enough room in the pot to cover these costs so you don’t wind up ‘house poor‘.
Tips When Buying A House In Manitoba
You should make a list of all your wants and needs before starting the search for a new home. This can include the following:
- Number of bedrooms
- Number of bathrooms
- Yard space
- Proximity to work
- Proximity to amenities
- Types of schools in the vicinity
Don’t just think about what your current needs are, but consider what your potential future needs will be as well. Unless you plan to move after a few short years, you may want to consider how your home will serve you years down the line. Consider things such as a growing family or mobility issues as you age, for instance.
Work With A Local Real Estate Agent
Team up with a real estate agent who is well-versed in the area you’re looking to buy in. Understanding the local market will help your agent find you a home at the best price. Plus, your agent will negotiate the lowest price possible on your behalf, which can leave more money in your pocket.
Have The Home Inspected
Take the opportunity to have the home you intend to buy inspected by a professional. Inspecting the home will help uncover any potential problems with the home that could be costly to repair. If you do find any issues, you can either renegotiate a lower price with the seller, ask the seller to make the necessary repairs before you move in, or back away from the deal altogether.
Regardless, a home inspection will help ensure that what you’re buying is worth the money you’re spending.
Get A Final Mortgage Pre-Approval
A mortgage pre-approval is a great idea, but it doesn’t guarantee final approval. Your lender will need to see a copy of your purchase agreement to find out how much you agreed to pay for the property in question. Once the lender has that figure to work with, they can start finalizing mortgage approval.
To allow time for that to happen, it’s important that you insert a financing condition in your contract to give you a few days to ensure that you can secure a mortgage. And if for some reason you’re unable to get final approval, you’ll be able to back off from the deal without being stuck with a home that you can’t afford.
Final Thoughts
A home purchase is an expensive endeavour. Luckily, Manitoba’s home prices are relatively affordable compared to many other parts of the country, including the nationwide average. That said, buying a home is a significant financial investment. Considering this, it’s important to take the time to assess your finances to determine how much you can comfortably afford in a home purchase before putting an offer on a home.
