September 19th, 2023 Mortgage Industry Update
The Bank of Canada announced on September 6th that its overnight lending rate will remain at 5.00%. The Canadian economy has now entered a period of weaker growth. CPI inflation is forecast to hover around 3% for the next year before gradually declining to 2% in the middle of 2025. Prime remains at 7.20%.
Additionally this week:
– Rentals.ca: Canada’s landlords are now asking a record-breaking average of $2,117 per month. Canadian market reached a new record. Data suggests monthly increase of 1.8% in August, and an annual surge of 9.6%. In July, market saw 1.8% increase to an average of $2,078.
– Nanos Research poll: 70% of Canadians said that they would be happy (40%) or somewhat happy (30%) to see home prices finally go down. This hope was especially prevalent among residents of the highest-demand markets like Quebec (82%), Atlantic Canada (78%), and Ontario (62%).
– Bank of Canada: 27.5% of mortgaged home purchases in first quarter of 2023 were by repeat homebuyers while 29.9% were by investors and 42.6% were by first-time homebuyers. Two years earlier gap between investors and repeat buyers was around 10% with investors lagging.
– Statistics Canada: National unemployment rate remained unchanged in August, staying at 5.5% and marking the first time for three months that the jobless rate has not increased. Economy added 40,000 jobs last month. This was a larger gain than expected by most observers.
– Homeowners in 15 major housing markets across Canada who bought properties in July 2018 have all on average seen their equity grow over the past five years, according to a new study by Zoocasa. Ontario homebuyers experienced the greatest increase in property values by far.
– Re/Max Canada said in a report that based on current market conditions, home prices are expected to remain flat nationally from August until the end of the year, according to surveys of the brokerage’s own agents.
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.
