May 23rd Mortgage Industry Update
May 23rd, 2017 Mortgage Industry Update
The Bank of Canada announced on April 12th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Both fixed and variable rates are generally stable within the market at this point in time.
Additionally this week:
– JLL Canada: Toronto commercial rents set to rise sharply due to rising demand, influx of highly-skilled workers, shortage of new buildings.
– RBC Economics: Surge in new listings in the GTA in April may be short-lived as many sellers may have been “cashing in their chips.” With government policy taken into consideration, forecasts national home resales to grow 5.3% this year with prices up 4.8%.
– Goldman Sachs report: From G-10 “House prices in New Zealand appear the most over-valued, followed by Canada, Sweden, Australia and Norway”. 30% chance of a Canadian housing bust.
– BCREA: 23.9% drop in home sales in April from last year. Average MLS price of $728,955 in the province, down 2 per cent from April 2016.
– Average cost of a home in Toronto jumped 24.6% year-over-year to $920,791 in April. Vancouver sales were down 26.2% year over year.
– National home sales fell 1.7% month-over-month in April and 7.5% year-over-year. Newly listed homes, meanwhile, were up 10% month-over-month.
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.