November 12th Mortgage Industry Update
November 12th, 2019 Mortgage Industry Update
The Bank of Canada announced on October 30th 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 and into early 2020, with the next major move likely being a rate decrease.
Additionally this week:
– RE/MAX: Sales of luxury residential properties worth $5 million+ are accelerating in GTA. Activity surpassed 2018 levels, with sales of freehold and condo properties valued at more than $5 million reaching 100 units from January to October; demonstrating an 8.5% annual increase.
– HuffPost Canada: In the 1970s, average price of Toronto home was $247k. Average income was $73.5k (in 2017 dollars) and max purchase price was $340.6k = could get 2,070 sqft suburban home. Now average income is $82.5k, average price is $794k, max purchase price of only $505k.
– TREB: During Q3 2019, a total of 9,538 new listings were added to the region’s condo inventory; representing a 1% annual drop. The region’s average price for condos went up by 5.8% settling at $584,564. Sales up by 11.1% year-over-year for a total of 6,407 through the MLS System.
– TREB: There were 15,375 active listings across the GTA in October, marking an 18.8% decline compared to a year earlier. Meanwhile sales rose 14% year-over-year as 8,491 properties traded hands in the month. The average selling price increased by 5.5% to $852,142.
– Some 72,000 rental units were under construction across the country in the last quarter according to CMHC. That’s up by more than 12,500 from a year ago, double the level of five years ago, and almost five times the number that were being built a decade ago.
– Canadian households spent $5.82 B in savings in Q2 2019, saving just $15.62 B in the year ending that quarter. The past year of savings was a decline of 29.52%, compared to the period a year before. This represents just 1.96% of income, compared to 2.3% of income one year before.
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.