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

January 21st, 2025 Mortgage Industry Update

The Bank of Canada announced on December 11th that its overnight lending rate will be cut to 3.25% from 3.75%! The second consecutive cut of 50 bps. Marks the fifth back to back rate cut! Inflation has dropped below the 2% target now. We can expect further decreases. The prime rate now decreases to 5.45%.

Additionally this week:

– CREA: National December sales slid by 5.8% monthly. Q4 saw sales activity jump 10% over Q3. Newly listed properties on the market fell by 1.7%. The MLS Home Price Index increased by 0.3% month over month and inched 0.2% lower compared with the same month in 2023.

– A proposed hike including a 5.4% property tax increase in Toronto’s 2025 budget is necessary to fund investments in key public services including housing and transit, city mayor Olivia Chow has said.

– Statistics Canada: Labour market posted a better-than-expected performance in December, adding 91,000 jobs as unemployment also ticked slightly lower. Jobless rate fell by 0.1% last month, coming in at 6.7%, as 40,000 jobs added in the public sector helped spur an overall jump.

– CP24: Toronto may surpass Vancouver as Canada’s most expensive housing market this year, as economic factors drive up real estate prices. Detached homes to lead the way in price growth. Toronto’s market is expected to rise at double Vancouver’s rate in 2025.

– Zoocasa: Cost of condominium ownership in Canada may reach record highs in coming years, with average price of condo projected to hit $1 million within next decade. Expected to be driven by Toronto and Vancouver mainly. Toronto could cross the $1 million threshold within 7 years.

– Urbanation: Average asking rent across Canada fell to $2,109 in December, marking its lowest point in 17 months, and down 3.2% annually. Marks fifth straight month of decreases. Follows years of significant rent price growth, with average rents rising 8.6% in 2023.

– RE/MAX Canada: For 2024, luxury home sales in the GTA grew by 4%, with 1,513 homes sold at or above $3 million. Higher-priced properties experienced even greater growth: sales of homes priced at $5 million or more increased by 21%, while homes over $10 million rose by 17%.

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.

Author

Harpreet Singh