Harpreet currently provides his services to all of Southern Ontario whether you are a first time homebuyer, sophisticated real estate investor, or any step in between.

Contact

(416) 795-1919

Search Mortgage Corp. 100-50 Village Centre Place Mississauga, Ontario, L4Z 1V9 License #: 12652

harpreet@searchmortgage.ca

October 29th, 2024 Mortgage Industry Update

The Bank of Canada announced on October 23rd that its overnight lending rate will be cut to 3.75% from 4.25%! A cut of 50 bps as compared to the previous 25 bps intervals. Marks fourth back to back rate cut! Inflation has dropped below the 2% target now. We can expect further decreases. The prime rate now decreases to 5.95%.

Additionally this week:

– Sotheby’s International Realty: Toronto luxury market held steady during summer (July-August), with $4M+ sales across all property types rising 3% annually. Single family home sales up 4%, while condo sales down 25%. However by September luxury sales in GTA picked up, growing 9%.

– Canada is expected to axe its annual permanent-resident target to about 395,000 for next year, down 21% from the earlier goal of half a million set last year. The annual target will also be further decreased to roughly 380,000 for 2026 and 365,000 in 2027.

– Yardi: National average rent rose by $26 to $1,547 in Q3. Over past year, total increase was $90, or 6.2% yearly, a slight deceleration from earlier quarters. National vacancy rate ticked up slightly by 20 basis points to 3.2% in Q3 2024, the highest it’s been since mid-2022.

– Urbanation: Condo sales in GTHA have dropped significantly, falling 81% annually in Q3. Only 567 condo sales – lowest since Q1 1995. 87% below the latest 10-year average for Q3 periods. YTD sales are down 63% annually. GTHA condo market is on track for its slowest year since 1996.

– Wahi: 13% of the 284 neighbourhoods with at least five home sales in September were in overbidding territory — up from 8.0% in August. While 1.0% of GTA neighbourhoods sold homes at-asking, the majority (86%) of neighbourhoods still saw homes sell below asking price.

– Nearly six in 10 people now agree “there’s too much immigration to Canada,” according to country’s longest-running survey on topic by Environics Institute. First time since 1998 that this view is held by a clear majority, and shift from favorable opinion over past two decades.

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.

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Harpreet Singh