November 7th Mortgage Industry Update
November 7th, 2017 Mortgage Industry Update
The Bank of Canada announced on October 25th that it’s overnight lending rate will remain at 1.00%. The prime rate remains the same. It is common prediction for rates to rise another 2 times by the end of 2018. Most fixed rates have risen significantly and are now in the 3%+ range.
Additionally this week:
– TREB: Sales up 12% from September to October. However, down 27% from 2016. Average selling price was $780,104, up 2.3% from October 2016. Detached house prices down 2.5% in October compared to 2016 across region; 4% decline in 905 region, 1.1% in Toronto. Condos up 22%.
– Conference Board of Canada: Non-unionized Canadian employees will see only a 2.4% increase in salaries in 2018. Growth was 2.2% in 2017.
– Realosophy: Appears October sales volumes are 29% below 2016 levels as fallout from provincial government’s rule changes drags into the fall.
– Emerging Trends in Real Estate 2018 study: Over one-third of young adult Canadians aged between 20-34 are living with at least one parent.
– Altus Group: Sales of new homes were down 48% in GTA compared to a year earlier as low and high rise sectors both saw large declines.
– CMHC expects house prices to continue rising, forecasts slower pace with national avg between $494k to $511k in 2017, $499k to $525k by 2019.
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.