August 27th, 2019 Mortgage Industry Update
The Bank of Canada announced on July 10th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands that the Bank of Canada will likely keep rates consistent for the remainder of 2019, with the small possibility of a rate decrease.
Additionally this week:
– Point2Homes: In 2001, 7.8% of all homes in the country were empty. In 2006, the vacancy rate had jumped to 8.4% and by 2016 it reached 8.7%. Here in Toronto, there are now more than 66,000 empty houses, which is just slightly higher than Montreal at 64,000.
– Zoocasa: Average Toronto home buyer needs to pay $256,055 more for a home in July 2019 compared to 2014, increase of 46% and price of $806,755. Average increase in condo prices was 66% ($627,927) between 2015 and 2019. Detached and semi-detached house sales up 42% to $1,167,968.
– Teranet-National Bank Composite House Price Index gained just 0.44% in the 12 months to July 2019 and gained 0.72% from the previous month. The 12-month increase was the smallest recorded since November 2009.
– Point2 Homes: In all, there were 1.34 million empty and temporarily occupied housing units in Canada in 2016. The national vacancy rate rose to 8.7%, from 7.8 % in 2001. This is five times higher than the U.S. The vacant home rate is 5.6% in Toronto, below the national average.
– Teranet: Condo apartments bought with multiple owners with an age gap of 20 years or more jumped from 9% of titles in 2012, to 14.4% by 2018. General market made similar move from 9.6% to 14.5%. May indicate a surge in parents assisting homebuyers.
– CMHC: Homeownership rate among 65+ in the Toronto metro area was 75.1% as of 2016, up from 73.4% in 2006. Seniors owned 1/4 Toronto homes in 2016, versus 1/5 in the previous decade. Seniors holding onto homes for longer periods of time, making it harder for first time buyers.
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.Share this post on: Connect with us on: