August 9th, 2016 Mortgage Industry Update

The Bank of Canada announced on July 13th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Most fixed rates have stabilized.

Additionally this week:
– Urbanation: Supply of new condos in GTA @ lowest level since 2010. Sales up 26%, total inventory down to decade low of 6.8 months of supply.

– OREA survey: 51% of millennials are intending to buy a detached property within the next 2 years. 28% said condo, 18% semi-detached homes.

– TREB: GTA home sales set a new record for the month of July with 9,989 sales through MLS. Average sale price up by 16.6% to $709,825.

– Home prices in Alberta expected to soften by 5-10%, according to Genworth, and job losses are expected to continue to impact delinquencies.

– Knight Frank Research: Avg price ($917,800) of residential real estate in Vancouver now far exceeds that of London or New York.

– Stats Can: Canadian economic growth took a hit in May with 0.6% decline. Construction was down by 0.7%, Real estate saw a 0.1% rise.

 
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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