November 27th Mortgage Industry Update
November 27th, 2018 Mortgage Industry Update
The Bank of Canada announced on October 24th that it’s overnight lending rate will increase to 1.75% from 1.50%. The prime rate increases from 3.70% to 3.95%. The common prediction currently stands at the Bank of Canada continuing to increase rates in the near future as the word “gradual” was omitted from their recent release.
Additionally this week:
– BILD + MGP study: Currently, just 4.5% of greenfield in GTA + Hamilton Area available for new development. Up to 55% of land designated for development by 2031 currently claimed, 40% already been built upon, 8% under construction, 7% recently approved by local municipalities.
– Teranet-National Bank Composite House Price Index: Canadian single-family home prices experienced a decline for the first time in 8 months in October. Relative to September prices, detached property values fell by 0.4%, with prices shrinking in 10 of the 11 major markets analysed.
– Ontario PC government exempting new builds from rent control. However existing tenancies still subject to rent control. They are rescinding one of the more controversial components of the Fair Housing Plan, introduced in 2017 by the Ontario Liberal Party.
– CREA: Home sales across Canada through MLS fell for a second month in a row as they were down 1.6% in October compared with September. Sales down 3.7% compared with October 2017. Average price for a home down 1.5% to $496,800 from October 2017.
– In a recent analysis that polled households where the oldest members were aged 20-45 years, Sotheby’s found that if costs are not an issue, fully 83% of young Canadians would raise their families in detached homes over any other asset type.
– Zoocasa: Majority (52%) of would-be home buyers stated that they are less likely to go for a potential purchase if marijuana was previously grown in the house in question. 57% said that even a legal amount of pot growth would significantly pull down the value of a property.
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.