September 3rd Mortgage Industry Update
September 3rd, 2019 Mortgage Industry Update
The Bank of Canada announced on July 10th 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, with the small possibility of a rate decrease.
Additionally this week:
– Mortgage Professionals Canada survey: 6.99 out of 10 consumers agree that mortgage debt is good debt. Most people say that real estate is a good long-term investment with an average score of 7.16. Average 6.31 out of 10 was recorded for now being a good time to buy a home.
– HuffPost: In global terms, Canadians are actually paying higher-than-normal mortgage rates, only exceeded by a small number of developed nations like the United States and Australia. Our historic lows are still considerably above a majority of advanced European economies.
– Royal Lepage report: Over the past year GTA single family detached homes are up 1% to $486 per square foot. Aggregate price across all property types is up by 6.1% annually to $782 per square foot.
– Royal Lepage report finds that the median price per square foot of condos in the GTA rose to $743 over the past year, a jump of 9.1%. The main reasons – Baby boomers who are downsizing, and millennials who have been priced out of the market for single family homes.
– BILD: July benchmark price of new condominium apartments increased month-over-month to $838,824, up 8.3% over the last 12 months; while the benchmark price of new single-family homes decreased slightly from June to $1,091,727, down 4.5% over the last 12 months.
– BILD: July sales of new single-family homes at 566, 136% higher than 2018, 29% below 10 yr average. Condo sales up 42% above 10 yr average with 2,297 units, 22% increase from 2018. Total new home sales in the first 7 months of 2019 at 20,268, up 45% from 2018, 9% below 10 yr avg.
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.