May 29th Mortgage Industry Update
May 29th, 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 has officially increased with the Bank of Canada from 5.14% to 5.34%. Fixed rates are stabilizing from recent changes in the bond market.
Additionally this week:
– CIBC study: Canadians aged 18-34 are far more likely to be landlords than any other demographic. 30% of millennial home owners are already landlords, while 17% are planning to be. Contrast to only 29% of home owners aged 35-54 and 12% of those aged 55+ being landlords.
– Sales of new homes in the GTA in April totalled just 1,727, the lowest number for April in 20 years according to data from Altus Group highlighted in a report from the Building Industry and Land Development Association (BILD).
– Zoocasa: Most affordable markets in Ontario at Thunder Bay, where the average home price sits at just $217,745 followed by Sudbury, Windsor, Ottawa and Kingston, with average prices of $268,696, $303,183, $418,232 and $366,582, respectively.
– Ryerson University Report: Millennials in the GTA and Hamilton Area are not that different from their parents when it comes to their dreams of owning a home. On track to follow in their parents’ footsteps, but they’re going to face steep prices and a potential housing shortage. Over the next 10 years, 700,000 Millennials will be looking to move into their own homes in the GTA. That could work out to 50,000 new Millennial households every year.
– TREB data collected by Zoocasa: For the period May 1-15, 2018, sales volume went up by 39% compared to the period April 1-15, 2018. However, the May figures also represented a 22% decline on a year-over-year basis.
– PadMapper’s Canadian Rent Report: Vancouverites spent an average of $2,100 in rent on a one-bedroom home in April (up 4.5% from March), enough to make the city the priciest rental market in Canada. Vancouver reclaimed the title from Toronto, which landed in the top spot in March.
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.