June 11th Mortgage Industry Update
June 11th, 2019 Mortgage Industry Update
The Bank of Canada announced on May 29th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands that the Bank of Canada will likely keep rates consistent for the remainder of 2019.
Additionally this week:
– Bank of Canada: The balance of mortgage debt at institutional lenders Canada wide reached a new all-time high in April. The outstanding balance reached $1.56 trillion, up 0.17% from the month before. This represents an increase of 3.2% from last year.
– Census data from 2016: 67.5% of Canadians live in suburban regions. Of those who live in metropolitan areas, just 14% reside in the core neighbourhoods, while 86% live in exurban or transit and auto suburbs. Exurban areas had 20% population growth between 2006 and 2016.
– BILD: For the month of April, the benchmark price of new single-family homes was $1,119,772, up 0.3% year-over-year while the benchmark price of new condominium apartments was $758,585, up 2.5% year-over-year.
– BILD: 3,853 new homes sold in GTA in April, up 123% from 2018. Of those sales 800 were single-family homes, up from the 443 in 2018 but still 50% below the 10-year average. For condo apartments, there were 3,053 condo sales; up 137% from 2018 and 37% above the 10-year average.
– Ryerson University: Toronto is fastest growing city in USA/Canada. Added more than 77,000 net new residents in year ending July 2018. More than 3x people as next municipality, Phoenix, Az. In terms of areas, GTA had second-fastest population growth, behind only Dallas-Fort Worth
– Zoocasa: Benchmark prices for Toronto at $873,100 and Vancouver at $1,441,000. Only the top 10% (household income over $160k) can afford to live in Toronto and only the top 1% (household income over $240k) can live in Vancouver.
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.