April 23rd Mortgage Industry Update
April 23rd, 2019 Mortgage Industry Update
The Bank of Canada announced on March 6th 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 might either keep rates still for 2019, or the potential for one further increase.
Additionally this week:
– CBRE Global Living Report: Housing prices continued to grow in all but 5 of 35 cities analyzed. Hong Kong (average home $1,235,220 USD) and Singapore ($874,372 USD) ranked as most expensive cities worldwide. Vancouver ranks 4th ($815,322 USD). Toronto ranked 12th ($575,557 USD).
– CREA: Home sales up 0.9% nationally in March from February. Benchmark price up 0.8%. Sales down 4.6%, prices down 0.5% from 2018. Lowest March since 2013. Toronto sales up 1.8%, prices up 1.5% from February. Sales activity at some of lowest levels recorded in last six years.
– Immigration consulting company Envoy Global poll: Nearly 40% of international tech employers are planning to expand into Canada, with more than 20% saying that they already have at least one Canadian office. Fully 65% are considering sending more professionals to Canada.
– TREB: In Q1 2019 average two-bedroom condo rent in GTA was $2,811, up 6% from 2018. One-bedroom rents $2,143, up 7.4%. 12,358 units listed for rent, up 22.4%. 6,646 units leased, up 7.7%. In City of Toronto average one-bed was $2,186, two bed was $2,964.
– Bank of Canada: As of January, outstanding insured mortgage debt shrunk by 9.37% down to $456.35B. 1.35% monthly decline. Balance has been on decline for few years now. Third consecutive month losses have intensified.
– RBC’s annual Home Ownership poll: 66% of Canadians believe it makes more sense to buy vs. rent. 56% said better to hold off on purchase until next year. Canadians see market being balanced between buyers/sellers, first time in 5 years.
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.