August 14th, 2018 Mortgage Industry Update

The Bank of Canada announced on July 11th that it’s overnight lending rate will increase to 1.50% from 1.25%. The prime rate thus increases to 3.70% from 3.45% with most lenders. The common prediction remains that there will be no further rate increases for the remainder of the year.  

Additionally this week:
– Altus Group: 574 commercial investment property sales transactions in GTA valued at over $1 million in Q2 2018. This brought the total investments for the first half of the year to $11.3 billion, representing a 6% annual gain over the record-breaking first 2 quarters of 2017.

– TREB: Sales up 19% in July to 6,961, from 5,869 in 2017. Seasonally adjusted sales up 6.6% from June, making July the strongest month this year for resales. Benchmark prices down 0.5% from a month earlier to $768,400. Average prices up 4.8% from a year earlier to $782,129.

– Home sales in July across Metro Vancouver tumbled to their lowest level in 18 years in statistics compiled by the real estate board. 2,070 properties changed hands in July, a 30% plunge when compared with July of last year, and 29% below the 10-year average for July.

– Urbanation: Pre-sales of new condos in Q2 2018 was down 57% year-over-year to 4,977 units with a slower pace of new projects. First half 2018 sales of 9,058 units were down 58% from 2017 (21,316) and 13% below the 10-year first half average of 10,471 sales.

– RE/MAX Integra: Prices of ski chalets, waterfront cottages and other vacation properties in Canada jumped 13% to a median $460,531 in the 12 months through June. Baby boomers with significant equity in their homes mainly to blame, as they leverage or move up.

– In its bid to crack down on fraud, the Canada Mortgage and Housing Corporation has petitioned the Canada Revenue Agency to take a “more direct and formal role” by verifying borrowers’ claimed incomes on their mortgage applications.

 
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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