March 8th, 2022 Mortgage Industry Update
The Bank of Canada announced on March 2nd that its overnight lending rate will increase to 0.50% from 0.25%. The prime rate has increased to 2.70% from 2.45%. Economies are emerging from the impact of the Omicron variant of COVID-19 more quickly than expected. Overall economic growth is strong across the nation. The Bank of Canada suggests that they will more than likely continue to raise interest rates over this year to tackle higher than anticipated inflation rates.
Additionally this week:
– Bank of Canada increases overnight rate to 0.50% from 0.25%. Economies are emerging from the impact of the Omicron variant of COVID-19 more quickly than expected; growth is strong. Variable rate mortgage holders can expect changes in their mortgages shortly.
– Altus Group and BILD: Total of 2,853 new residential transactions were closed in the GTA last month, which were 18% higher on an annual basis and 47% above the region’s 10-year average. This level represented a 19-year high in number of new homes sold in the region in January.
– RE/MAX Canada: Residential unit sales in the Greater Toronto housing market have doubled and average price has increased more than 450% since 1996. Between 1996 and 2021, more than two million homes sold in the GTA, representing a dollar volume in excess of $1.1 trillion.
– Avison Young: Total investment activity in the Toronto office market reached $1.4B in Q4 2021, increasing by 106% on a quarterly basis and accounting for 18% of the GTA’s total for that period. The Toronto office market’s full 2021 total reached nearly $2.8B, up by 99% annually.
– Sotheby’s 2021 Year End Top-Tier Real Estate Report: GTA ultra-luxury property sales over $10M recorded on MLS rose 238% to 31 properties sold. Within City of Toronto, luxury sales over $4M rose 188% to 465 properties sold in 2021, with 19 of those selling over $10M (up 173%).
– CMHC annual rental market report: Average rent for a two-bedroom home in the 37 areas the federal housing agency studied increased to $1,167 last year, a three per cent rise from $1,128 in 2020 and $1,080 in 2019.
– Recent report by Mustel Group and Sotheby’s International Realty Canada focusing on generation “Z”ers reveals that 75% per cent of those surveyed believe they’ll likely buy and own a primary residence in their lifetime.
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.
