November 22nd, 2022 Mortgage Industry Update
The Bank of Canada announced on October 26th that its overnight lending rate will increase to 3.75% from 3.25%. Inflation globally and in Canada continues to rise. Central banks around the world continue to tighten as well. The prime rate has increased to 5.95% from 5.45%. The Bank of Canada suggests that they will more than likely continue to raise interest rates as necessary to tackle higher than anticipated inflation rates.
Additionally this week:
– Statistics Canada: Annual inflation rate held steady in October. Consumer price index rose 6.9% from a year ago, in line with economist expectations and matching the increase in September. Index gained 0.7% during the month, a touch lighter than the 0.8% forecast by economists.
– CREA: October national home sales rose by 1.3%, first time since February. However down 36% yearly. 60% of all local markets had seen a jump. Number of newly listed homes also saw an 2.2% monthly increase. National average home price came in at $644,643, a 10% yearly decline.
– Statistics Canada: Investment in building construction declined by 0.6% to $20.9 billion in September. Decrease was especially notable in the residential segment, which went down by 1.3% to $15.4 billion. Single-family home investment ticked down by 1.3% to $8.5 billion.
– Canada currently has the most expensive housing market among the G7 nations, according to data from the Organisation for Economic Co-operation and Development. Home price-to-income ratio in Canada reached 148.16 in Q3. Germany came in at a considerably distant second with 140.6.
– Canadian Association of Insolvency and Restructuring Professionals: Consumer insolvency filings saw largest proportional growth in 13 years with a 22.5% annual increase during Q3. Increased by 2.3% on a quarterly basis, with number of filings veering back to pre-pandemic levels.
– Avison Young: Suburban office market in GTA is settling at a moderate clip, with rising availability (up by 30 basis points to 17.5%) and vacancy (up by 10 bps to 11.6%) during Q3. Availability went up by 15% from Q2 to Q3, totalling 7.2 million square feet of available space.
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.