August 11th, 2015 Mortgage Industry Update

The Bank of Canada announced on July 15th that it’s overnight lending rate will be cut to 0.50%. The prime lending rate at most lending institutions thus decreased to 2.70%. Additionally, most fixed rates are rumoured to decrease in due time, as the overnight rate influences the bond market.

Additionally this week:
– Another record set for Toronto home sales in July, up 8% vs. July 2014; however detached home price dropped below $1M first time in months. In the GTA (including Toronto) the average price for a detached home in the GTA is now $787,607. TREB reports condo market had 2,429 sales in July, up 14.4% year over year. The average price for a condo is now $372,263, up 4.1%

– Lenient border laws, permissive property rules, loose regulations – identified as key drivers of foreign investment in real estate market

– Toronto condo sales continue their summer surge, with #sales showing year-over-year growth for Q2 2015; 11% growth over last year.

– CoreLogic: Home prices across U.S. spiked by 6.5% year-over-year in June. Marks 40th consecutive month of annual price increases nationwide

– Canadian GDP shrank for fifth straight month in May, contracting 0.2%. Was broad-based but on-going slump in #oil prices mostly to blame

– Conservative government has plans to implement a program that offers homeowners 15% tax refund on renovations up to $5,000 if reelected

 
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.