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

January 18th Mortgage Industry Update

January 18th, 2022 Mortgage Industry Update

The Bank of Canada announced on December 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 mid 2022 now, as compared to initially saying late 2022. 

Additionally this week:

– Homing.ca report: Price of detached home in Toronto area costs nearly $1M more today than 10 years ago. Back then was around $574,351. Today that same home could cost nearly $1.6 million. Semis are now around $1.1M, however in 2012 average price was just under $430,000.

– Cushman & Wakefield: The national office vacancy rate increased by 40 points to 14.8%; representing the smallest quarterly increase since pandemic began. Toronto’s vacancy rate rose quarterly from 11.8 to 12.2%. Toronto’s pre-pandemic vacancy rate was around 2%.

– Statistics Canada: Ontario is a prime destination for foreign money, with 9.2% of its condos built from 2016 onwards being held by non-resident homeowners in 2020. This outstripped the 8.3% level the year prior.

– Statistics Canada: Employers created 55,000 jobs in December, putting total employment back to where it would have been if the trend hadn’t been interrupted by an epic economic collapse in March 2020. The jobless rate dropped to 5.9%, somewhat higher than before the pandemic.

– Statistics Canada: Total value of construction permits in Canada increased by 6.8% to $11.2 billion in November. Increases were observed in 7 provinces, with Alberta showing greatest gain at 20.6%. Building permits in residential sector saw their value grow by 12% to $7.8 billion.

– U-Haul has named Alberta as country’s top growth province for 2021 as more trucks moved in than out compared to 2020. Province saw a 33% increase in trucks arriving in 2021 compared to the previous year, while departures rose by 29%. Overall nearly 51% of all traffic was inflow.

– TRREB: GTA home sales hit an all-time high of 121,712 last year, up 7.7% from the previous record of 113,040 set in 2016 (also up 28% from 2020). New listings only rose by 6.2%. The average selling price of a residential property was also up by 17.8% year-over-year to $1,095,475.

 
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.

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Harpreet Singh

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