June 12th, 2018 Mortgage Industry Update
The Bank of Canada announced on May 30th 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:
– Bloomberg Nanos Canadian Confidence Index ends at 57.5 in May, the index represented a slight decline from the 57.9 in April and a considerable upswing from the 56.8 in March. The May figure was still a far cry from the record 62.2 level back in December, however.
– Zoocasa: Analyzing TREB data and sales figures since 2016; found that “condo sales in the higher price ranges have all increased substantially and condo sales in the lower price ranges have dropped substantially.” More affordable units are rapidly disappearing.
– TREB Ipsos Reid survey: 77% of 1,200 GTA resident respondents favoured rolling the current land transfer tax back and 68% supported a full repeal.
– The average price of a recreational home in Canada is expected to rise 5.8 per cent to $467,764 by the end of September, according to a new survey by Royal LePage. That’s up from $442,239 in the same period last year.
– IMF: Canada’s GDP could be reduced 0.4% or more if the U.S. and Canada fail to reach a NAFTA agreement; trade between the two countries reverts back to World Trade Organization (WTO) rules. Expects growth in Canadian economy to slow to 2.1% in 2018, 2% in 2019, from 3% last year.
– TREB: Avg selling price for all property types in May up to $805,320 from $804,584 in April, up fifth consecutive month. Sales down 22% year-over-year across GTA as 7,834 properties traded hands. Slight uptick from the previous month – 7,792. New listings down 26% year-over-year. In May detached home prices averaged $1,045,553, down 8.2% year-over-year; semi-detached declined 1.2% to $815,803; and townhouses dropped 2.5% to $640,543. Condos were the only segment to see an increase with the average price rising 5.7% year-over-year to $562,892.
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.Share this post on: Connect with us on: