February 27th Mortgage Industry Update
February 27th, 2018 Mortgage Industry Update
The Bank of Canada announced on January 17th that it’s overnight lending rate will increase to 1.25% from 1.00%. The prime rate has thus increased to 3.45% with most lenders. The 5 year posted rate has also changed to 5.14% with most lenders.
Additionally this week:
– BILD: New construction home sales declined by 48% in January in the Toronto region, compared to 2017. 31% drop from the 10-year average. Single-family benchmark home price rose 19.6% last month to $1.23 million — up from about $1 million last January. Condo prices up 41%.
– Toronto Region Board of Trade survey: 83% of GTA Millennials say that the cost of housing is making it difficult to save for retirement, 65% report that it made it hard to pay off debt. 79% said that there weren’t enough two- and three-bedroom condos and apartments available.
– BC NDP Government is raising its foreign buyers tax (to 20%) + expanding it to areas outside of Vancouver, while bringing in a new levy on speculators, as part of a sweeping plan to improve affordability in the province’s overheated housing market.
– Toronto Region Board of Trade survey: 42 per cent of young professionals would consider leaving the region because of the high cost of housing.
– Mustel Group + Sotheby’s International Realty Canada Report: 61% of the age group in the country’s four largest metropolitan areas said their real estate investments fared better than their RRSPs, TFSAs, stocks, and bonds.
– CREA: Home sales through MLS declined by 14.5% from December to January, lowest monthly level in three years. On a year-over-year basis, national sales dropped by 2.4% in January. Number of newly listed homes plunged 21.6% to reach the lowest level since spring of 2009. Down 26.6% in Toronto. The national decline was the biggest since 2008 and Toronto’s was the biggest since 1989, according to historical data.
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.