July 25th, 2023 Mortgage Industry Update
The Bank of Canada announced on July 12th that its overnight lending rate will increase to 5.00%. The Canadian economy has been stronger than originally expected, with more momentum in demand. CPI inflation is forecast to hover around 3% for the next year before gradually declining to 2% in the middle of 2025. The prime rate increases to 7.20%.
Additionally this week:
– Urbanation: Average asking rent for a one-bedroom unit in Toronto is now $2,572, and more than $3,000 for a two-bedroom. Toronto has the third highest rents of any city in the country, after Vancouver and Burnaby, B.C. Mississauga sits in fourth place at $2,362 for a one-bedroom.
– CREA: Home sales up 1.5% in June (40,449) from May. Up 4.7% annually. National average home sale price (not seasonally adjusted) was $709,218, up 6.7% annually but down 2.7% monthly. New listings were up 5.9% monthly.
– Rentals.ca: Average asking price for rental unit rose to $2,042 in June, surpassing previous record in November 2022 of $2,024. 1.4% increase from May – fastest monthly rise so far this year. Also 7.5% annual increase. Rebounded by nearly 23% from low of $1,662 in April 2021.
– CREA now expects 2023 home sales to be 6.8% lower than last year, coming in at 464,239 – a downward revision from its April expectation of 492,674 sales. Home sales for 2024 are anticipated to total 516,043, substantially down from CREA’s earlier forecast of 561,090.
– TRREB: There were 6,844 total condo sales in Q2, up over 20% yearly. New condo listings were down by more than 13% yearly. Active listings down by 8%. Condos in the GTA sold for an average of $737,868 in Q2, and that price was down 4.2% compared to the second quarter of 2022.
– Royal LePage: Aggregate price of a home in Canada remained almost flat compared to last year in the second quarter of 2023, dropping just 0.7% to $809,200. Compared to the peak of pricing last year, in Q1 2022, the aggregate pricing of a home now sits 5.6% lower.
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.
