February 23rd Mortgage Industry Update
February 23rd, 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:
– The country will probably welcome closer to 275,000 new permanent residents this year, versus a target of 401,000, Royal Bank of Canada says. Last year, Canadian immigration dropped by almost half to 184,370, its lowest levels in more than two decades.
– CBRE: City of Toronto’s office vacancy rate is 11% in Q4 2020. Amounts to 2.6 million square feet of empty Toronto office space, the highest level in 17 years. National average of 13% in Q4 is just 3.2 points higher than the year-earlier, pre-pandemic quarter.
– A survey from Mortgage Professionals Canada found the share of non-owners who plan to buy a house in the coming year jumped to 27 per cent in January, from 7 per cent before the pandemic. And that’s despite prices rising at breakneck speed.
– TRREB: Building from strong momentum established towards end of 2020, ownership will remain strong this year, with total home sales expected to range 100,000-110,000. Overall average selling price across all residential in the region will also exceed $1 million for the first time.
– Canada’s economy is expected to expand 4.7% in 2021, according to Bloomberg’s latest monthly survey of analysts. That’s up from a previous yearly estimate of 4.4%. Growth in 2022 is seen at 4.1%, little changed from the January survey.
– Zolo’s 2021 Home Buyers Survey of 1,369 home shoppers: The top four features home buyers want are a main floor bathroom, preferred by 71% of respondents, a garage (70%), a master bedroom with an en-suite bathroom (68%), and private outdoor space (68%).
– Office of the Superintendent of Bankruptcy Canada: There were 96,458 filings in 2020, the lowest since 2002. Fell last year to the lowest level in two decades. Down 30% from 137,178 consumer insolvencies in 2019, the largest one-year decline in records back to 1987.
– TRREB: January GTA home sales across the region were up by more than 50% year-over-year. Sales reached 6,928, a 52.4% increase from the 4,546 reported 12 months prior. Average selling price reached $967,885 — a 15.5% increase from the same month last year. Condos sales up 85.5%.
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.