October 15th, 2019 Mortgage Industry Update
The Bank of Canada announced on September 4th 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:
– Royal LePage: As a whole, GTA saw prices rise by 3.7% year-over-year last month, to a median home price of $858,443. 6.2% gain in City of Toronto, where median price grew to $926,419. Prices forecast to continue growing to a median home price of $859,301 by the end of the year.
– Bank of Canada: Outstanding mortgage credit load continues breaking records, reaching a new high of more than $1.59 trillion as of August. Unprecedented high came as a result of a 4% annual increase, and a 0.6% gain from July 2019. August marked fifth straight month of increases.
– Statistics Canada: Building permits rose 6.1% cent in August to $9 billion, compared to 1% increase estimated by analysts. Housing starts down 2.5% in September on an annualized basis to 221,202 from 226,871 in the previous month, according to Canada Mortgage and Housing Corp.
– Results from the 2019 RBC Retirement Myths & Realities Poll found that 52% of non-retired respondents aged 50-plus said they would downsize or rent instead of owning, up from 36% in 2018. This was a Canada-wide average. 55% said they’d leverage their home equity in retirement.
– TREB: Average home price grew by 5.8% in September to $843,115, highest seen so far this year. Active listings fell by 14% annually to 17,254 units. Detached homes drove much of the dynamism, with a 29% increase in sales.
– Point2 Homes: Roughly 1.34 million homes across Canada lie empty or merely hold temporary occupants as of 2016. Represented 8.7% of the units available in the national market. Noticeably larger than the 8.4% proportion seen a decade prior. Toronto accounted for 66,000 of 1.34M.
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.
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