March 3rd Mortgage Industry Update
March 3rd, 2020 Mortgage Industry Update
The Bank of Canada announced on January 22nd 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 early 2020, with the next major move likely being a rate decrease.
Additionally this week:
– BILD: GTA new house benchmark price of a single-family home reached $1,097,613 in January, down 2.9% from a year before. The condo apartment benchmark reached $925,209, up 15.1% from a year ago. Single-family prices are still over 10% lower than the peak reached in 2017.
– BILD: GTA saw total of 2,106 new home sales in January, up 65% annually, 14% greater than 10 year avg. Of these, roughly 1,100 were condos, 33% increase from 2019 and 12% higher than 10 year avg. 1,006 were single-family homes, up 126% than 2019 reading and 16% above 10 year avg.
– Zillow survey: 77% of prospective buyers in Toronto are concerned that they can’t afford their ideal home; up 4% from 2018. 66% cited down payments as a barrier to home ownership. 61% cited high monthly mortgage payments. 56% cited difficulty qualifying for a mortgage.
– Royal LePage: Luxury condo prices climbed 7% in the GTA in the 12 months ending Jan., to a median price of $2.4M. High end houses, rose only 1.2% to $3.6M in the same period. Predicting luxury condos to rise between 10-15% in next 12 months and houses to surge between 2.5-6%.
– The GTA is the fastest growing region in North America with an estimated 115,000 new residents arriving every year. The population of the GTA is set to grow by 40 per cent or an estimated 9.7 million people by 2041.
– StatsCan: Canadian median after-tax income of families and unattached individuals was nearly flat in 2018; $61,400 in 2018 – up 0.82% from 2017. Toronto’s fell to $68,600 in 2018, down 2.97% from 2017. Ontario saw the median rise to $66,200, up 3.28% from a 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.