February 13th, 2024 Mortgage Industry Update
The Bank of Canada announced on January 24th that its overnight lending rate will remain at 5.00%. Bank of Canada maintains overnight rate at 5.00%! The Canadian economy has stalled since middle of 2023 and growth will likely remain close to zero through first quarter of 2024. Economy now looks to be operating in modest excess supply. The prime rate remains at 7.20%.
Additionally this week:
– Canada has lengthened a ban on foreign home buyers for two additional years. Justin Trudeau’s government acted to prohibit non-Canadians from buying residential real estate in 2022, with the measure to expire on Jan. 1, 2025. That date has now been moved to Jan. 1, 2027.
– More than 15 per cent of immigrants leave Canada within 20 years of admission to return to their country of origin or to move to another country, according to a new Statistics Canada report.
– CMHC: Rent prices in Canada soared last year as supply struggled to keep up with demand, leading to the lowest national vacancy rate on record since tracking began in 1988. Vacancy rate for purpose-built rental apartments sat at 1.5% during the first two weeks of October 2023.
– Toronto mayor Olivia Chow’s executive committee has given the nod to proposed tax targeting foreign buyers eyeing residential properties in city. Entails imposing 10% tax on value of purchased properties, slated to take effect on January 1, 2025, pending approval from council.
– Statistics Canada: Economy posted slight growth in November, with GDP inching upwards by 0.2% following three consecutive flat months. Economists were anticipating growth of 0.1%. For the full fourth quarter, real GDP likely grew at a clip of 0.3%, according to an estimate.
– Sotheby’s International Realty Canada: City of Toronto saw 27% bump in number of properties that sold for $4M+ in the last half of 2023. That’s despite a 20% annual decline GTA-wide in sales of luxury homes over $4M, which includes condos, attached and single-family properties.
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.
