January 16th, 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:
– The first proposed budget of Toronto Mayor Olivia Chow’s tenure includes a 10.5 per cent property tax increase, one of the largest the city has seen in years, as Toronto struggles to make up a persistent deficit.
– CBRE: Toronto’s downtown office vacancy rate climbed in the final quarter to its highest level since 1996. New figures show 17.4 per cent of downtown office space is sitting empty, up from 15.8 per cent in the second and third quarters.
– Statistics Canada: Total value of building permits in Canada fell by 3.9% on a monthly basis to settle at $10.9 billion in November, with declines posted across almost all asset classes. Aggregate value of residential permits saw a 2.8% drop to $7 billion in November.
– RE/MAX study found that 73% of Canadians are still confident that homeownership is one of the optimal investments that any consumer can make. Prospective home buyers can be expected to prioritize acquiring primary residences with rental potential as a strategic measure.
– The total number of insolvencies in Canada saw a noticeable upswing in November, surging by 5.1% compared to the month prior, according to the Office of the Superintendent of Bankruptcy. This gain included a 7.1% rise in bankruptcies and a 4.5% increase in proposals.
– Statistics Canada: Number of employed people was essentially unchanged in December, while the unemployment rate held steady at 5.8%. Fell short of forecasts for a gain of 15,000 positions. Wage increases for permanent employees accelerated to 5.7% over the prior year.
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.
