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  • Professor Andrea M. Armani, University of Southern California
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  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Kris Thorkelson on Bank of Canada Rate Cuts and Their Impact on Winnipeg Real Estate

By: Zexprwire

Market Stability, Housing Affordability, and Investment at a Crossroads

Manitoba, Canada, 3rd March 2025, ZEX PR WIRE, As the Bank of Canada considers interest rate cuts in 2025, Winnipeg’s real estate market faces both opportunities and challenges. Kris Thorkelson, CEO of Thorwin Properties, is urging policymakers, industry leaders, and the public to stay informed about the potential effects on housing affordability, investment trends, and rental demand.

“The Bank of Canada’s decisions don’t just impact mortgages,” says Thorkelson. “They influence property values, rental market trends, and development incentives—all of which shape Winnipeg’s real estate landscape.”

How Rate Cuts Could Affect Winnipeg’s Housing Market

Interest rate cuts are designed to stimulate economic activity by making borrowing more affordable. While this can encourage homebuying and investment, it can also have unintended effects on rental demand and property pricing.

Historically, lower interest rates increase buyer activity, pushing home sales and prices upward. However, in cities like Winnipeg—where affordability has been relatively stable compared to larger Canadian markets—rate cuts may trigger heightened competition, particularly for first-time buyers.

According to the Canada Mortgage and Housing Corporation (CMHC), Winnipeg’s average home price increased by 8.2% in 2024, and demand for housing remains strong. Lower rates could drive prices even higher, making it harder for buyers to enter the market while boosting investor interest in rental properties.

“If borrowing becomes cheaper, we could see more investment in real estate,” Thorkelson explains. “That’s great for development, but it’s crucial to ensure that affordability remains a priority for both buyers and renters.”

Balancing Growth and Affordability

While rate cuts could encourage new construction and housing supply, Thorkelson highlights the need for balanced policies that support long-term housing affordability.

“Lower rates may attract more developers, which could expand rental housing options and increase supply,” he says. “But we also need measures to ensure that affordability doesn’t suffer due to speculative investment or pricing volatility.”

He advocates for continued investment in housing initiatives that support both renters and first-time buyers, as well as strategic urban planning that aligns with economic shifts.

“We should be looking at incentives for affordable housing, infrastructure improvements, and policies that encourage responsible investment,” he notes.

What Winnipeg Residents Should Expect

For buyers, a potential rate cut means cheaper mortgage costs but a more competitive market. For renters, it could mean increased investment in rental housing but possible shifts in pricing as demand fluctuates.

“We don’t want to see affordability eroded for either group,” Thorkelson says. “Whether rates go up or down, it’s important to keep housing accessible and sustainable for everyone in Winnipeg.”

For updates on Winnipeg’s real estate market and insights from Thorwin Properties, visit www.thorwin.ca.

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