April 24th, 2018 Mortgage Industry Update

The Bank of Canada announced on April 18th that it’s overnight lending rate will remain at 1.25%. The prime rate thus remains at 3.45% with most lenders. The 5 year posted rate remains at 5.14%. Almost all fixed rates remain stable without any significant changes in the 3%-3.5% range.

Additionally this week:
– Bank of Canada maintains overnight rate target at 1.25%! no change in prime rate present, good news for any variable rate mortgage holders!

– TREB: Buyers of condos in the Greater Toronto Area paid an average $533,447 in the first three months of the year, a 9% rise year-over-year.

– Since 1983, the median total income in Toronto has increased 33% from $58,700 to $78,280 in 2015 (based on the last Statistics Canada Census). Comparatively, the average Toronto home price has increased an astounding 693% from $101,626 to $806,071 in 2017.

– Statistics Canada: Canadian new home prices fell 0.2% in February for the first time since July 2010. On an annual basis prices were up just 2.6%, the smallest 12-month increase since June 2016. Prices in Toronto fell 0.6%, second monthly decline and the biggest in eight years.

– CREA: Number of homes sold in March plunged 22.7%, national average price was down 10.4% from 2017. Sales activity marked a four-year low for the month of March, 7% below the 10-year average. National average price about $491,000, down 10.4%.

– Knight Frank Global Residential Cities Index (tracks the price growth of the world’s most expensive housing markets): Hamilton saw a 11.3% year-over-year jump in prices last year, placing it at number 17. Toronto number 29 on the list, with year-over-year price growth of 9%.

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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