February 2nd, 2021 Mortgage Industry Update
The Bank of Canada announced on January 20th that its overnight lending rate will remain at 0.25%. The prime rate remains 2.45%. The Bank of Canada suggests that they will more than likely keep rates at this “effective lower bound” until 2023, as they observe the full effects of the pandemic.
Additionally this week:
– Rentals.ca’s national rent report: Average rent for a one-bedroom in the City of Toronto was down 20.4% annually in December. Average prices for one and two-bedroom apartments continued their slide, falling 2.4% and 2.1% since November to $1,832 and $2,416, respectively.
– CREA: Ontario saw 11,716 new residential listings in December, an increase of 39.1% over 2019. Active residential listings fell by 36.3% annually to 14,958 units, a three-decade low. The average home sold for $751,508; establishing a new record and growing by 20.1% annually.
– CREA: Ontario residential sales through MLS totalled 14,749 in December, representing 48.7% annual increase. Broke previous record set in 2016. Overall home sales in 2020 amounted to 227,717, growing 8.7% year-over-year and resulting in the market’s second-best annual sales ever.
– Home starts declined to 228,300 units last month on an annualized basis, down 12.6% from a revised 261,200 units in November, Canada Mortgage and Housing Corp. said Monday in Ottawa. The overall number missed the 230,000 median forecast in a Bloomberg survey.
– RBC’s latest Home Buying Sentiment Poll: Majority (80%) of Canadians still believe home ownership is a good investment. 56% of respondents aspire to purchase a home. 59% say home prices in their area are unaffordable.
– Urbanation: Toronto’s rental apartment vacancy rate climbed to a 50-year high of 5.7% in Q4 2020. Was only at 1.1% in 2019. Toronto’s average rent for purpose-built units fell 10% year-over-year to $2,337 in Q4, as average per square foot rents declined 6.2% to $3.49.
– The Bank of Canada projects the economy will grow by 4 percent in 2021, almost 5 percent in 2022, and around 2.5 percent in 2023.
– CREA: National home sales up 7.2% in December from November, pushing total transactions for year to a record 551,392 units (12.6% annual increase). Average home price reached record $607,280 (up 17.1% annually, 1.5% on the month). Results were the strongest ever for a December.
– Padmapper: As it stands, the median cost for a 1-bedroom rental in Toronto was $1,830 in January — a decline of 3.7% month over month, while rent for 2-bedrooms also fell 2.4% to $2,740. On a year-over-year basis, one-bedroom rent in Toronto is down 20.4%, 2-bedrooms down 16.3%.
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.Share this post on: Connect with us on: