October 19th Mortgage Industry Update
October 19th, 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:
– RBC’s Housing Trends and Affordability report: Amount of income needed to cover ownership costs of home in Canada has reached 45.3%. Worst it’s been in more than 30 years, 4th consecutive increase to figure. Completely wipes out improvements that happened at beginning of pandemic.
– Statistics Canada: Canada has recovered all of roughly three million jobs lost to Covid-19. Economy added 157,100 jobs in September, returning the labour market to pre-pandemic levels. Economists were expecting 60,000 new jobs. Unemployment rate fell to 6.9% from 7.1% in August.
– Statistics Canada: Total value of building permits in Canada fell by 2.1% to $9.7 billion in August, with residential construction segment in particular showing a sustained downward trend since its Q1 peak (saw permits drop by 8.3% from July to August, ending up at $6.4 billion).
– Sotheby’s International Realty Canada: GTA residential transactions valued at over $4M surged 12% annually in July and August, with luxury condos over $4M increasing 40% during same period. Luxury housing market will likely see rising prices and steady activity during fall season.
– TRREB: Average price of a resale home in GTA jumped 6.1% in September from August, and 18.3% annually. Sales rose slightly on a month-over-month basis, but fell 18% on the year as new listings plunged 34% from a year ago.
– Ministry of Finance: Ontario is expected to add a whopping 2.27M people to its current 14.5M residents within the next ten years alone, 1.2M of them in the GTA. City of Toronto, which currently has a population of nearly 3M residents, will add roughly same number by 2046.
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.