May 16th, 2023 Mortgage Industry Update
The Bank of Canada announced on April 12th that its overnight lending rate will remain at 4.50%. This was the second hold-still since they started increasing rates a year ago. Inflation has started to lower. Latest data remains in line with the expectation that inflation will come down to around 3% in the middle of this year. Prime remains at 6.70%.
Additionally this week:
– Real estate blog Point2: Caledon has highest happiness index in the country. Milton and Halton Hills came in second and third. Metrics include median after-tax income, poverty rate, perceived health and a sense of belonging as well as commute time, rainfall and air quality.
– StatsCan: Total monthly value of new building permits grew by 11.3% in March to reach $11.8 billion. Value of new residential permits ticked down by 0.9% to $6.6 billion. Ontario’s 8.1% drop amounting to a $246.6 million loss was the greatest drag to Canada’s residential permits.
– Statistics Canada: The labour market added 41,000 jobs in April, with the unemployment rate remaining unchanged at 5% for the fifth month in a row. The April employment figures, which were up 6,000 from March, were bolstered mainly by gains in part-time work.
– TRREB: April prices up 4% monthly to $1,153,269. But down 7.8% annually. Sales hit 7,531, down 5.2% annually but up about 9% monthly. New listings totalled 11,364, down 38% yearly. Detached homes fell 8.3% to $1,489,258. Semis down 9.8% to $1,135,599. Towns down 3.2% to $986,121.
– TRREB: Q1 average rent for a one bedroom condo apartment in GTA jumped 15.1% annually, to $2,474, while the average rent of a two-bedroom increased 9.2% to $3,162. Bachelor units experienced most significant annual increase, up 16.2% to $2,014. 3 bedroom was up 15.0% to $4,152.
– TRREB: 4,519 condo apartments were sold across the GTA in Q1 2023, a 42.9% drop from 2022. Average sale priced declined 11.4% annually, to $700,566, while new listings fell 19.9% yearly. Listings spent an average of 27 days on the market, a 125.0% increase from a 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.