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

March 1st, 2022 Mortgage Industry Update

The Bank of Canada announced on January 26th 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 raise interest rates sometime this year to tackle higher than anticipated inflation rates. 

Additionally this week:

– OREA: Roughly 40% of parents helped their children (aged 18 to 38) financially with buying a house. Of these parents, 71% gave their kids a financial gift, worth an average of $71,000, and 61% supported them with a loan, worth an average of $41,000.

– CMHC: Average national vacancy rate fell slightly from 3.2% in 2020 to 3.1% last year, to stand above the pre-pandemic level of 2.2% and closer in line with the long-run average. Vacancy rates slumped across 21 of the 37 centers across Canada and increased in 3; including Toronto.

– Total commercial real estate investment in the Greater Toronto area amounted to nearly $23.5 billion in 2021, up by 92% year-over-year and exceeding the record-high annual total set in 2019 ($17.7 billion) by 33%, according to a new report from Avison Young.

– TRREB poll: Of existing homeowners surveyed, just 13% indicated they’d be “very likely” to list their home over this year, with an additional 22% saying they’d be “somewhat likely”. In contrast, a combined 65% indicated they’d be “not at all” or “not very likely” to list.

– RE/MAX expects the average home price to increase by about $100K this year, average selling price estimated to reach $1,160,491. Approx increase of 10%; outpaces both 2020 and 2021 levels of growth. Last year average detached home price in Toronto jumped 15.8% to $1,710,304.

– According to a recent survey commissioned by FairSquare Group Realty, only 19% of Canadians would buy or sell a house during the pandemic, with those aged 18-54 significantly more likely to say they would than those aged 55+.

– CREA: January national average selling price reached $748,450; 1% higher from December and 21% yearly. Compared to pre-pandemic levels in January 2020, the MLS Home Price Index is now up 46.5%. Home sales up slightly from a month ago at 55,043; down nearly 11% from year-ago.

 
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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