January 10th Mortgage Industry Update
January 10th, 2017 Mortgage Industry Update
The Bank of Canada announced on December 7th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Many fixed rates have risen by 10-30 points due to the new mortgage rule changes.
Additionally this week:
– Canadians came in second place in list of countries that spent most in U.S. properties in 2016; $8.9 billion. Chinese in 1st – with $27.3B.
– Ipsos Reid: 79 per cent of first-time home buyers will delay buying due to the new mortgage stress tests and rule changes.
– Better Dwelling blog analysis: National avg $ of Canadian composite homes up 14.4% over past year to $581,400. Fastest pace in last 10 years.
– TREB: Toronto sales totalled 113,133 in 2016, up 11.8% year-over-year. The average price jumped 17.3% year-over-year to $729,922. GTA avg home price up to $730,472 in December, up 20% from 2015. Sales up 8.6% last month compared to 2015. Supply hits 15 year low.
– TD Bank Forecasts: 7.5% drop in Vancouver’s existing home sales in 2017, 3.4% in 2018. Toronto sales up 1.9% in 2017, down by 9.4% in 2018.
– New rules implemented by Chinese government on foreign exchange from yuan might lead to noticeable slowdown in the Canadian housing market.
Stay tuned for the next update!
For any questions and concerns please do not hesitate to call Harpreet Singh The Mortgage King at (416) 795-1919.