January 31st, 2023 Mortgage Industry Update
The Bank of Canada announced on January 25th that its overnight lending rate will increase to 4.50% from 4.25%. Inflation globally and in Canada continues to remain high. Central banks around the world continue to tighten as well. Our economy remains in excess demand, however there is indication we are nearing the end. The prime rate has increased to 6.70%.
Additionally this week:
– The value of loans secured by housing in Canada continued to go up with a 0.1% monthly uptick and a 9.6% increase to reach $308.9 billion in October, according to filings at the Office of the Superintendent of Financial Institutions.
– BILD: Sales of new construction homes in GTA plunged as much as 68% last year compared to 2021, but year-over-year prices declined only 4% on the single-family home side (to $1.75M) and 3% for condos (to $1.13M). 563 new home sales in December represented a record low.
– BoC increases overnight rate to 4.50% from 4.25%. Inflation globally and in Canada continues to remain high. Central banks around the world continue to tighten as well. Our economy remains in excess demand, however there is indication we are nearing the end.
– Urbanation: Average cost to rent condo in the Greater Toronto Area reached $2,752 per month in the fourth quarter of 2022, marking a $391 rise from the same time in 2021. Rent growth climbed 16.9 per cent annually in 2022 in comparison to the 0.5 per cent decline the year prior.
– Zoocasa: 12-out-of-22 Ontario housing markets had properties listed for sale for a shorter amount of time than the Toronto average in December. Toronto average was 40 days. Marked 110.5% year-over-year increase, when properties were listed on the market for an average of 19 days.
– Sotheby’s: Residential real estate transactions valued at $4 million decelerated by 24% annually in 2022, while ultra-luxury sales over $10 million declined by 29%. Overall sales valued at $1 million and above fell by 28%.
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.
