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 25th Mortgage Industry Update

January 25th, 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:

– Rentals.ca: The second most expensive Canadian city (after Vancouver) to rent a one-bedroom apartment was Toronto, with a rate of $2,013; up 9.2% annually. Average rent for all Canadian properties in December 2021 was $1,789 per month, an increase of 3.8% annually.

– CREA: Canada was left with the fewest houses for sale in at least a quarter century in December – 86,000. There were a record 667,000 sales over 2021; 20% more than previous annual record. Benchmark home prices rose 2.5% monthly, and were up a record 26.6% yearly to $811,700.

– Royal LePage: Aggregate price of a home increased 17.1% yearly to $779,000 in Q4 2021. When broken down by housing type, the national median price of a single-family detached home rose 21.1% yearly to $811,900, while the median price of a condominium increased 15.8% to $553,800.

– Rentals.ca: Average rent for all Canadian properties last month was $1,789 per month, up 3.8% yearly; 4th consecutive month average asking rents were positive, following 16 consecutive months of annual declines. Ontario’s avg Q4 overall rent increased yearly by 5.4% to $2,087.

– A new study from the Bank of Canada titled Housing Demand in Canada found investors accounted for nearly 20% of home purchases dating back to 2014, a figure that has rapidly outpaced other types of buyers during the COVID-19 pandemic.

– Sotheby’s International Realty Canada: GTA home sales valued at more than $4M surged by 224% annually, while ultra-luxury sales valued at more than $10M shot up by 238%. $4M+ condo, attached, and single family home sales rose 179%, 267%, and 227% year-over-year, respectively.

– Rider Levett Bucknall: Average increase in construction costs from 2020 through 2021 was 7.42%. Strongest construction cost growth in North America over past year was in Toronto (up 13.25%). Several other Canadian markets also have some of highest annual rates of growth.

 
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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