October 31st, 2023 Mortgage Industry Update
The Bank of Canada announced on October 25th that its overnight lending rate will remain at 5.00%. There is growing evidence that past interest rate increases are dampening economic activity and relieving price pressures. Supply and demand in the economy are now approaching balance. Prime remains at 7.20%.
Additionally this week:
– TRREB: 4,415 condo sales were processed in Q3, up 6.2% annually. New listings for condos were up 28.8%. Average selling price was $720,628. In 2023, the average price was $716,145. City of Toronto average price was $736,566 – down from $750,087 a year earlier.
– BILD: 1,885 new home sales transpired in the GTA in September; 303% higher annually and 32% below the 10 year average. Condo apartments represented 1,290 of these transactions, up by 207% annually. Single-family housing accounted for 595 sales, up by 1,140% annually.
– Royal LePage poll: Over the next 18 months, the firm estimates that 3.4 million Canadians will renegotiate their mortgages — almost all at a higher interest rate. The poll found nearly three quarters of people are worried about the looming transaction.
– National Payroll Institute: 54% of working Canadians forced to allocate a third or more of household incomes to cover total monthly housing costs. 62% of those employed reported being “concerned” about housing costs. 58% said that spending on housing has increased over past year.
– Bank of Canada maintains overnight rate at 5.00%! There is growing evidence that past interest rate increases are dampening economic activity and relieving price pressures. Supply and demand in the economy are now approaching balance. Prime remains at 7.20%.
– Zoocasa Poll: 79% of Canadians admitted that another rate increase by the Bank of Canada would negatively affect their interest in the real estate market. 9% “strongly agreed” that the September policy decision had a positive impact on their interest in the housing market.
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.