January 8th Mortgage Industry Update
January 8th, 2019 Mortgage Industry Update
The Bank of Canada announced on December 5th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands at the Bank of Canada will gradually increase rates in 2019.
Additionally this week:
– BILD: Sales of new homes totalled 2,823 in November. Condo sales down 24% from 2017 to 2,454, only 6% below 10 yr average. Price was $786,602, up 11.9% from 2017. Single-family sales up 8% from 2017 to 369, but 71% below 10 yr average. Price was $1,150,823, down 5.9% from 2017.
– CREA: Prices in Hamilton area have jumped by 70% over the past 5 years to $581,900. 79% rise in Niagara Region to $393,500. GTA saw an increase of only 58.5% and the national average was 43%. Largely because of the westward exodus of Greater Toronto Area buyers.
– CREA: Sales of existing homes fell 2.3% in November, down 12.6% from 2017. Canada’s national average home resale price down 2.9% from 2017 to $488,000. Marked third month in a row that sales fell. Predicting home sales will fall another 0.5% in 2019.
– National Rent Report from rentals.ca: Average rents nationally will rise 6% in 2019 but in Toronto they could be almost double that at 11% with Ottawa (9%) and Vancouver (7%) also set for large increases.
– StatsCan: Average price of a new Toronto home dropped 1.5% year-over-year in October. Benchmark price for a single-family home fell 8.4% over 2017 (BILD). Pace of construction on new low-rise homes fell 40.3%, suggesting a lack of supply.
– Teranet-National Bank National Home Price Index rarely posts a decline in November – it’s done so just 4 times in the 20 years – but it recorded a 0.3% decline from the previous month. In Toronto, prices declined over the last three months, for a total loss of 0.4%.
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.