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August 11th, 2020 Mortgage Industry Update

The Bank of Canada announced on July 15th that its overnight lending rate will remain at 0.25%. The prime rate remains 2.45%. The Bank of Canada has openly stated that it will more than likely keep rates at this “effective lower bound” for the immediate future until the effects of the pandemic are more clear.

Additionally this week:
– Statistics Canada: Economy recorded a third straight month of strong employment gains tin July that have recouped more than half of losses from COVID-19. Employment rose by 418,500, bringing to 1.7 million the number of jobs reclaimed over the past three months.

– Mortgage Professionals Canada survey shows that among non-home-owning Canadians, the number who expect to purchase in the next year doubled to 14 per cent this summer, compared to only 7 per cent at the end of last year.

– KPMG: More than half of Canadians are afraid to go back to their workplaces and 77% are worried their colleagues might show up infected with the coronavirus. 60% say they’ll refuse to go back if they believe their place of work is not safe enough.

– TRREB: The average selling price for all homes sold across the GTA jumped 16.9% in July from 2019 to $943,710. Sales soared 29.5%, setting a new record for July as 11,081 properties traded hands. The strongest demand was seen in the detached-property market, as sales jumped 44%.

– According to the TorontoRentals and Bullpen Research & Consulting Toronto and GTA rent report, average monthly rent in the GTA declined for the seventh straight month in June to $2,129. The average rent is down 1.7 per cent monthly, and 7.3 per cent annually.

– According to TREBB, GTA realtors reported 7320 apartment rentals in Q2, which is down 24.8 per cent from the same time last year. Meanwhile, the number of rental listings were up by 42 per cent from last year.

 
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.