July 30th, 2024 Mortgage Industry Update
The Bank of Canada announced on July 24th that its overnight lending rate will be cut to 4.50% from 4.75%! Marks the second back to back rate cut! Recent data has increased confidence that inflation will continue to move towards the 2% target. The prime rate decreases to 6.70% across lenders.
Additionally this week:
– BILD: Benchmark price for condos in June was about $1.023 million, and for single-family homes it was about $1.613 million. Prices declined by 6% for both home types annually. 1,139 new homes were sold last month; a 46% annual drop and 59% less than the 10-year average.
– Canadian commercial real estate market is showing signs of recovery. JLL noted that the market hit its lowest point in Q1 2024, with national investment activity at just $8.5 billion. However, the second quarter saw an improvement, with transactions surpassing $12 billion.
– The Bank of Canada cuts overnight rate to 4.50% from 4.75%! Marks second back to back rate cut! Recent data has increased confidence that inflation will continue to move towards the 2% target. The prime rate likely decreases to 6.70% across lenders.
– Urbanation: GTHA saw just 1,688 new condo sales in the second quarter of 2024, marking a 66% year-over-year decline and a 70% drop compared to the 20-year average. Represents the lowest Q2 sales figures in the past 20 years, excluding the initial months of the pandemic.
– Engel & Völkers 2024 Mid-Year Luxury Real Estate Market Report: Luxury properties in Halifax, Ottawa, Toronto and Vancouver are outperforming market trends in the $1 million-plus market segment. From January to June, Toronto saw a 4.7% increase in prices for homes over $8 million.
– Statistics Canada: The overall inflation rate fell to 2.7% last month, spurred in part by cooler gasoline price growth, after an unanticipated uptick in May. A survey of analysts conducted by Reuters revealed expectations of a 2.8% inflation rate in June.
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.
