November 5th, 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:
– TRREB: In the third quarter of 2024, condo sales dropped by 4.4% year over year to 4,204 units. The number of condo rental transactions jumped 29.2% year over year, with 18,540 units rented in Q3. New condo listings climbed 10.6%.
– TRREB: Greater Toronto condo prices are plunging. The price of a benchmark condo fell 2% (-$13,400) to $654,300 in September, marking the fifth consecutive month lower. September was also the fifth largest monthly drop on record.
– Scotiabank Housing Poll: Although over half of Millennials (55%) and Gen Z (58%) feel that buying a home is currently out of reach, 58% of Canadians aged 18 to 43 remain determined to purchase a home within the next five years.
– Conservative leader Pierre Poilievre has promised to eliminate federal sales tax on newly built homes priced under $1M if his party wins next election. Scrapping the tax on new homes priced at $800,000 would save buyers around $40k and reduce annual mortgage payments by $2,200.
– Equifax Canada now allows immigrants to use credit data from their countries of origin enabling Canadian lenders to assess creditworthiness based on newcomers’ international credit histories. Will connect international credit bureaus to deliver a “calibrated score” in Canada.
– BILD: Just 247 new-build condo units were sold in the GTA in September — a plummet of 81% compared to 2023, and 85% below the 10-year average. 344 new single-family homes were sold during same time – down 41 per cent from September 2023, and 58 per cent below the 10-year average.
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.
