July 11th, 2023 Mortgage Industry Update
The Bank of Canada announced on June 7th that its overnight lending rate will increase to 4.75%. Inflation in Canada increased surprisingly last month along with strong job and GDP numbers. The latest data remains in line with the expectation that inflation will come down to around 3% shortly. The prime rate increases to 6.95%.
Additionally this week:
– TRREB: Average home sold for $1,182,120 in June, up 3.2% annually. However below the average of $1,195,929 in May. Condo apartments down by 1.1%. Sales totalled 7,481, compared with 6,422 the June before and 8,997 in May. New listings totalled 15,865, down 3% from the prior June.
– Research Co: In Q1 2023 35% of Canadians rated country’s economic conditions as “very good” or “good,” 44% expected situation to worsen. Six months later, we see some signs of recovery, with 41% of Canadians saying the national economy is currently in “very good” or “good” shape.
– Statistics Canada: Wealthiest 20% of Canada’s population in Q1 2023 owned 67.8% of individuals’ overall net worth, while the least wealthy 20% of the population owned only 2.7%. The gap is now 65.1 points, up 1.1 points from 64 points in the same quarter in 2022.
– On average, residential construction prices have increased by 51% since the beginning of the pandemic, a factor that has placed enormous pressure on new home prices. This has far outpaced the 13% increase in the consumer price index since Q1 2020.
– Statistics Canada: Country welcomed more than 145,000 immigrants during Q1. Highest number for a single quarter on record. The pace of population growth was the fastest on record for a first quarter as well, with 98 per cent of the growth coming from immigration.
– BILD: GTA new home sales were at 3,109 for May; up 22% annually. Condos accounted for 1,976 units, a 3% decrease. Single family home market experienced 1,133 sales, up 123%. Benchmark price for new condos dropped 6.7% to $1.1M. Single family price dropped 4.3% to $1.7M.
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.