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

February 4th, 2025 Mortgage Industry Update

The Bank of Canada announced on January 29th that its overnight rate to 3.00% from 3.25%! Marks the sixth consecutive rate cut from the bank. The economy is expected to strengthen gradually and inflation to stay close to target moving forward. The prime rate decreases to 5.20%.

Additionally this week:

– BILD: GTA December sales (only 310) plummeted to their lowest level in nearly four decades. 46% decline from the previous year and an 80% drop below the 10-year average. Overall, new home sales for 2024 were down 47% year-over-year and 69% below the decade-long norm.

– Urbanation: After a 4.6% increase in average asking price of a rental unit in 2021, monthly payments surged 12.1% yearly in 2022. Then in 2023, asking rents increased by an average of 8.6%. Average asking rents fell 3.2% nationally to $2,109 in December, marking a 17-month low.

– Statistics Canada: The New Housing Price Index experienced a minor decline of 0.1% in December 2024 compared to November. Decrease in new home prices was recorded across 7/27 surveyed census metropolitan areas, while prices in 13 remained steady and increased in the remaining 7.

– National Bank of Canada found that real estate inventory proved more resilient than sales in December. That inventory might be even higher this Spring, as frustrated sellers cancel 1 in 5 listings without a sale.

– Oxford Economics: Canada’s housing needs are projected to decrease by 500,000 homes by 2035, driven by a decline in population. Reflects 0.2% annual population decrease in each of the next two years, driven by recent changes in immigration policy introduced by federal government.

– Yardi Canada Q1 2025 multifamily report: National vacancy rates reached 3.6% in Q4 2024, the highest level seen since 2020. Bachelor units were particularly impacted by the increase, seeing the largest rises in availability.

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