January 9th, 2024 Mortgage Industry Update
The Bank of Canada announced on December 6th that its overnight lending rate will remain at 5.00%. The Canadian economy has now entered a period of weaker growth and is continuing to slow. Recent data suggesting economy is no longer in excess demand. The prime rate remains at 7.20%.
Additionally this week:
– TRREB: GTA saw 3,444 home sales in December, an 11.5-per-cent climb compared to a year ago. The average price for a home climbed 3.2 per cent to $1,084,692. New listings fell 6.6 per cent to 3,886 in December compared with 4,161 during the same month a year earlier.
– TRREB: Total number of home sales reached 65,982 in 2023, lowest sales recorded since 2000. 12% dip compared to 2022 and 46% below record number of sales seen in 2021. Average selling price for all home types in 2023 was $1,126,604, representing a 5.4% decline compared to 2022.
– Royal LePage: Prices for single-detached homes in major recreational ski regions are expected to climb to an average of $1.1 million, or 2.9%, over the coming 12 months. Assuming interest rates stay level or decline somewhat. Follows estimated 4.5% decline in prices in 2023.
– Toronto was deemed the safest city to reside in within Canada, according to the latest Canadian Crime Index survey conducted by Money(.)ca. Takes into account occurrences of arson, burglary, robbery, and impaired driving.
– Based on current market expectations that interest rates have peaked but will remain above pre-pandemic levels, the Bank of Canada researchers expect the median monthly mortgage payment will rise from $1,200 in February 2022 to $1,600 by the end of 2027—a 34% increase.
– Statistics Canada: National population grew by more than 430,000 during Q3 (up by 1.1% quarterly), bringing the total population to around 40.528 million as of October 1. Marked fastest quarterly pace of increase since Q2 1957, which posted a 1.2% increase at the time.
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.
