November 19th, 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:
– Financial Accountability Office of Ontario report: Construction continues to stall and number of new single-family homes is at lowest in 70 years. New housing starts declined by 17% from Apr-Sep this year compared with last. Ontario saw total of only 20,600 new units started.
– Habitat for Humanity Canada survey: Four in five Canadians now say that buying a home feels like a luxury, while 88% of renters say the goal of owning a home in Canada has become out of reach. 82% voiced deep concern over how the housing crisis is impacting health and well-being.
– Office of the Superintendent of Bankruptcy: 34,588 Canadians filed for consumer insolvency in Q3 2024, up 13.5% from the same period last year. Year-over-year consumer insolvencies have risen in double digits for ten consecutive quarters, starting in the second quarter of 2022.
– Royal LePage: U.S. originated sessions searching for Canadian properties on the brokerage’s website spiked 52% in one day on Nov. 6, following the election of Donald Trump for a second time. This marks the highest number of U.S. users on the website year to date.
– RESCON report: Mix of factors dampening the construction of new homes across Ontario. In the GTA municipal fees for single-family homes have jumped to an average of $164,920, up by $42,000 from last year. Apartment fees now averaging $122,387 – an increase of $32,000.
– Wahi: Some 70% of all homes that changed hands across the GTA in October sold for less than the seller’s asking price. 88% of GTA neighbourhoods with at least five home sales in October were in underbidding territory last month. That’s roughly flat from September.
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.
