April 16th, 2019 Mortgage Industry Update

The Bank of Canada announced on March 6th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands at the Bank of Canada might either keep rates still for 2019, or the potential for one further increase.

Additionally this week:
– The Ontario Real Estate Association is lobbying the provincial government to prohibit bully offers, citing its desire to enhance professional standards in the industry.

– CBRE: Asian investments in Vancouver fell to almost $350M in 2018, down from the $1B+ in each of the two prior years. Toronto took in $526M last year, up slightly from 2017, including a $256M purchase of an office building by Chinese private investor Tigra Vista Inc.

– CMHC: Annual pace of housing starts picked up in March to 192,527 units after sharp slowdown in February (166,290). Economists had expected an annual pace of 196,500, according to Thomson Reuters. Six-month moving average stood at 202,279 in March, compared to February’s 202,039.

– The International Monetary Fund’s Global Financial Stability Report says that the risk has grown over the past two years in the Canadian housing market and is near to levels seen during the financial crisis of the last decade. USA’s risk on the other hand is down.

– Royal LePage House Price Survey: Price of average home in Toronto up 5.8% in Q1 2019. Two-storey home prices and bungalow home prices up 4.8% and 2.5% year-over-year, respectively, while condominium prices up 9.3% year-over-year.

– Royal LePage House Price Survey: Price of average home in Canada increased by 2.7% year-over-year in Q1 2019, below long-term norm of 5%. Two-storey homes up 2.6% to $729,553, bungalows up 1.1% to $513,497, condos up 5.4% to $447,260.

 
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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