October 26th Mortgage Industry Update
October 26th, 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:
– Teranet’s Q4 market report: Toronto’s activity comprised 17% of total Ontario property transfers in period January 2011 to August 201, with approximately 11% of these being movers from one principal residence to another, 25% being first-time buyers, 25% = multi-property owners.
– RE/MAX Canada 2021 Condominium Report: Buyers turned to condominiums in 2021, as freehold housing values escalated beyond their reach. The strongest sales gains were in the West; GVA and Calgary up 87% and 83% annually between January 1 and August 31. GTA led the East with 71%.
– CREA: Home sales across Canada were up 0.9% between August and September. Marked first monthly increase since March. Actual number of transactions in September was down 17.5% annually. Number of newly listed homes fell 1.6%. National average home price was $686,650; up 13.9%.
– Royal LePage House Price Survey: Housing prices in Canada have jumped an astounding 21.4% since this time last year. Aggregate price of a home in Canada has risen to $749,800 in the third quarter of 2021, compared to $617,800 in the third quarter of 2020.
– Rentals.ca and Bullpen Research & Consulting: Average rents for all property types are still going up, pandemic or not. But after five straight months of increases since April’s low of $1,675, rents are still 9.5% ($185) below the pre-pandemic peak of $1,954 from two years ago.
– Statistics Canada: Investment in building construction across Canada decreased 2% to $17.7B in August, marking 4th consecutive monthly decline. After its peak in April, residential construction saw a 2.9% decrease for the month. All provinces except Nova Scotia recorded a drop.
– Smart Prosperity Institute: Ontario needs to add 1M homes over next decade to keep up with population growth. About 70,000 units of all types are added in a typical year. Will have to increase to 100,000 to accommodate expected 2.27M more people who will live in Ontario by 2031.
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.
