September 14th, 2021 Mortgage Industry Update
The Bank of Canada announced on September 8th 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 recovery from COVID-19.
Additionally this week:
– TRREB: Detached homes averaged $1,674,641 selling price in August, up 3% from July and 11.2% from last year but down from peak levels earlier this year ($1.75 million in March). Average selling price in the city of Toronto was $1,000,008, which is lowest it’s been since February.
– Bank of Canada stands still on the overnight rate at 0.25%. Good news for variable rate mortgage holders as there is no expected change in prime rates!
– TRREB: 8,596 homes changed hands in August, down 19.9% annually, and new listings were down 43%. Sales down 8.2% monthly. Detached homes sales were down 31.5% annually. Condos were up 11.3%. Average selling price in GTA jumped 12.6% from a year earlier to $1,070,911.
– RBC Economics’ latest Housing Health Check: After reaching overheated territory earlier this year, risks to the housing market are now easing as prices and activity moderate. “Still-solid” demand in the resale market and low inventories are keeping odds of a price collapse low.
– BILD: New home sales were 2,140 in July, 14% lower than 10 yr avg. Single-family homes saw 662 sales (21% below 10 yr avg), condos accounted for 1,478 sales (11% below 10 yr avg). Benchmark price for new single-family home increased by 28.4% to $1.518M. Condos by 9.8% to $1.091M.
– Statistics Canada: Canada’s rebound unexpectedly stalled through spring and early summer. GDP fell at an annualized 1.1% pace from April to June. Down from a revised 5.5% gain in the first three months of the year. Economists were anticipating a 2.5% expansion.
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.