August 8th, 2017 Mortgage Industry Update

The Bank of Canada announced on July 12th that it’s overnight lending rate will increase from 0.50% to 0.75%. The prime rate at almost all institutions has increased from 2.70% to 2.95%, the first increase in 7 years. Fixed rates have slightly risen over the last 3 weeks and seem to have stabilized now.

Additionally this week:
– Number of sales transactions fell 40.4% in July compared to 2016. Average price of all homes in GTA was $746,218, up 5%.

– Urbanation: For the second consecutive quarter, new condo apartment sales in the GTA have reached a new high: 12,138 units sold, up 62%.

– Morguard Corporation: Canadian commercial real estate sector is poised for sustained stability and reliability if recent trends continue.

– New record set for GTA’s commercial investment property sales: Q2 – 736 sales $1M+, total of $6B. 34% increase over the previous quarter.

– HSBC: 90% of Canadians who bought a home recently used an online channel, compared to the global average of 83% (UK was top-placed at 93%).

– RE/MAX: Home sales may be slipping in Toronto, but the average price for a detached home jumped 40% in the second quarter of 2017. Half of the neighbourhoods in the 905 region saw the average detached home price increase 46.7% in Q2 compared to 34% in the 416.

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.

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