October 16th Mortgage Industry Update
October 16th, 2018 Mortgage Industry Update
The Bank of Canada announced on September 5th that it’s overnight lending rate will remain at 1.50%. The prime rate thus remains 3.70%. Good news for variable rate mortgage holders as they can expect no changes to their rates! The common prediction currently stands at another rate increase for October’s meeting.
Additionally this week:
– Urbanation: Condo rents in GTA increased 9.4% year-over-year on per sq ft basis in Q3 2018 to $3.26. Average unit size leased declined to 731 sf from 744 sf. Average rent in GTA was $2,385, up 7.6%. Number condo lease transactions up 5%, highest Q3 level in 3 years at 8,186 units
– Ryerson Centre for Urban Research and Land Development: Much of GTA’s current housing stock made up of “yellow belt” — areas of low-rise homes where higher density development is prohibited. Allowing mid-density development is practical way to increase affordable housing stock.
– Recent estimates from Statistics Canada show the country’s population grew by more than 518,000 over the past year, to 37.1 million. That’s the fastest rate Canada has seen since the late 1980s, and the fastest rate of any G7 country.
– TREB: Q3 2018 was a good one for the commercial real estate sector in the GTA. Almost 7M sqft of combined industrial, commercial/retail, and office space was leased through MLS system in the period. 24.9% increase compared to 2017. Industrial space accounted for 75%.
– CMHC: Annual pace of Canadian housing starts fell to their lowest level in nearly two years in September. Seasonally adjusted annual rate came in at 188,683, down from 198,843 in August. Economists had expected an annual rate of 210,000. Marks the third straight monthly decline.
– Urbanation: There were just 27 launches of condo projects taller than 12 storeys in the first half of 2018, 34% drop from the 41 projects that launched during 2017. Meanwhile, there were 15 launches of mid-rise buildings under 12 storeys, down just slightly from 2017’s 17.
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.