August 28th, 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:
– The Supreme Court of Canada has refused to hear an appeal from TREB that would have prevented sales numbers from being posted on password-protected webpages. Greater Toronto Area realtors can now publish home sales data on their websites.
– RE/MAX survey: Average price of recreational real estate across Canada saw a significant 13% year-over-year increase in June 2018. Sustained demand among Canada’s elderly being the driving reason, many (1/5) using recreational properties as retirement properties.
– Rentals.ca : The average one-bedroom in Toronto costs $1,862 to rent, while in Vancouver it’s a hair lower at $1,833. A two-bedroom unit in Vancouver rents for an average of $2,583 a month, and for $2,193 Toronto.
– Vancouver is officially the world’s hottest industrial real estate market with lease rates up 29% in the first quarter year-on-year versus a global average of 3%. E-commerce giants like Amazon are driving the need for more logistics and storage space.
– Looking at 22 major global cities, of which Metro Vancouver was the only Canadian city, The Economist reported that Vancouver real estate is valued at 65 per cent higher than it should be, based on local incomes.
– CREA: Average price of a Canadian home was $481,500 last month, 1% increase since 2017, first increase this year. Prices inched higher but July saw the total number of homes sold during the month decline compared to last year, by 1.3%. However, up 1.9% from June.
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: