Harpreet currently provides his services to all of Southern Ontario whether you are a first time homebuyer, sophisticated real estate investor, or any step in between.

Contact

(416) 795-1919

Search Mortgage Corp. 100-50 Village Centre Place Mississauga, Ontario, L4Z 1V9 License #: 12652

harpreet@searchmortgage.ca

December 7th Mortgage Industry Update

December 7th, 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:

– BILD: A total of 4,280 new home sales took place in the GTA last month, a level that was 7% above the 10-year average for October. Single-family sales totalled 1,112 units sold (14% below 10 year avg), while condos represented 3,168 transactions (17% above 10 year avg).

– Statistics Canada: Canada sees a record high influx of 45,000 new residents in September alone. Current projections place the number of new permanent residents at 401,000 in 2021, followed by 411,000 in 2022 and 421,000 in 2023.

– Statistics Canada: 1,014,600 job vacancies in September. Represents about 6% of all jobs, a vacancy rate that’s up from as low as 3% last December. Employers in high-contact industries like food services and hotels had the highest proportion of unfilled positions, at 14.4%.

– Bank for International Settlements: Globally, house prices were up 4.8% yearly in Q2, led by an 8.6% rise in developed markets. Represented fastest rate since financial crisis. Global prices are now up by about 24.5% since crisis, and they’re 32.5% higher in developed markets.

– Avison Young: Industrial property market of Toronto remains among tightest in North America with availability around 1.2% – considerably lower than Canadian average, and far from record-high 7.1% seen during Q1 2010. Over past 5 years, industrial rental rates have grown by 74%.

– Bank of Canada: National mortgage debt balance reached a new record high of $1.77 trillion in September, up 0.7% monthly and up 9.6% annually. Three-month annualized rate of growth dropped from 14.2% in June to 9.7% in September, implying that short-term growth is slowing down.

– Statistics Canada: Last month, residential sales prices increased in 15 of 27 major census metropolitan areas surveyed. Prices remained static in 10 CMAs and declined in 2. New home prices up by 0.9% monthly nationally in October, outstripping growth observed over prior 4 months.

– According to Teranet, the largest segment of the real estate market is now multi-property owners at 25 per cent, higher than first time home buyers at 22 per cent.

 
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.

Author

Harpreet Singh

Leave a comment

Your email address will not be published. Required fields are marked *