August 17th Mortgage Industry Update
August 17th, 2021 Mortgage Industry Update
The Bank of Canada announced on July 14th 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 the later half of 2022 now, as they observe the country’s faster than expected recovery from COVID-19.
Additionally this week:
– Statistics Canada: Investment in building construction across Canada decreased by 4.5% to $18.4 billion in June. Residential construction investment fell 5.8% month-over-month in June to $13.8 billion – with single-family investment seeing a 7.3% decline in June to $7.5 billion.
– Statistics Canada: During Q2, existing home prices shot up by more than twice the rate of growth seen in new homes. Across all residential asset classes in major metropolitan markets, prices had a 13.5% increase, with new builds posting 7.8% growth and existing homes surging 16%.
– TRREB: While housing sales dipped a bit in Mississauga over the month of July, prices are still up year-over-year, with the average housing price rising to $963,829 (which is actually a decrease from $1,019,325 in June 2021). Average price combined in GTA was $1,062,256—up 12.6%.
– According to the Toronto Regional Real Estate Board’s latest data, condo apartment sales soared 155 per cent year-over-year during the spring quarter and the average selling price rose 10.8 per cent during the same timeframe.
– TRREB: Average price for a home in Toronto dipped from $1,017,744 in July 2020 to $1,016,580 last month, a 0.11% drop. The 905 average price rose from $908,212 to $1,086,650, a 19% increase. The overall combined average was $1,062,256, a 12.6% jump.
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.