November 16th Mortgage Industry Update
November 16th, 2021 Mortgage Industry Update
The Bank of Canada announced on October 28th 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 mid 2022 now, as compared to initially saying late 2022.
Additionally this week:
– Zoocasa report: Five cities in the GTA have the lowest property tax rates in Ontario. Toronto was revealed as having the lowest property tax rate at 0.61%. This was followed by the GTA cities of Markham (0.63%), Richmond Hill (0.65%), Vaughan (0.66%), and Milton (0.68%).
– Recent Yahoo/Maru Public Opinion survey polled more than 1,500 Canadians and found that 68% of respondents believe house prices will continue to rise over the next couple of years, while 32% believe in a decline. 84% say housing prices in their community have risen over last year.
– RE/MAX report: Out of the 2,799,834 Ontarians aged 18 to 34, just 319,295 of them own their own home – a mere 11.4%. Significant jump from the 40.1% of Ontarians aged 35 to 54 who own homes, and an even bigger jump from the 47.9% of those over the age of 55 who are homeowners.
– Statistics Canada: Total value of building permits nationwide rose 4.3% to $10.1B in September. Residential construction intentions up by 8.2% monthly, in contrast to 3.2% decline in non-residential sector. Largest proportional increase in building permits seen in Ontario (6.3%).
– TRREB: 9,783 homes sold last month in October, down 7% annually, but still the second highest October on record. New listings decreased to 11,740; down 34%. Average home sold price up 19.3% to $1.16 million, up from $968,535 in the same month last year.
– Canada’s housing market is showing signs of “returning to earth,” with slower price growth expected for much of 2022, according to new report from Moody’s Analytics and Real Property Solutions. Will be driven by the expected gradual rise in interest rates over the coming years.
– Urbanation: Sales of new condos in GTA hit record for Q3; 7,773 (up 22% annually – new all time high for Q3). Suburbs accounted for more than half of total sales. City of Toronto saw sales growth of 40%. Average price per square foot up 10% to $1,231 – another record high.
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.