December 10th, 2019 Mortgage Industry Update

The Bank of Canada announced on December 4th 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 into early 2020, with the next major move likely being a rate decrease.

Additionally this week:
– TREB: 7,090 residential property sales across GTA in November; up 14.2% from 2018. Detached property sales rising at the fastest pace with 23.8% surge year-over-year. Active listings sank 27.2%. Average selling price up 7.1% to $843,637. Fastest annual price growth since May 2017.

– Bank of Canada stands still on the overnight rate at 1.75%. Good news for variable rate mortgage holders as there is no expected change in prime rates!

– Statistics Canada: The annualized pace GDP growth over Q3 2019 was 1.3%, which was markedly lower than the 3.5% measure during the quarter prior. Exports also fell by an annualized pace of 1.5%, representing the third drop in the past four quarters.

– According to a median forecast of economists in a Bloomberg survey, Canada’s expansion slowed to 1.3% in the three months through September, down from 3.7% in the prior period. Predicting another 1.3% in final three months of 2019. Next year growth predicted to be at about 1.5%.

– Statistics Canada: 330,800 foreclosures in 2018, about 2.2% of all households. Ontario had bulk of forced moves, coming in with 127,600 in 2018, about 38.6% of total. Ontario came in third nationally with 2.3% of households forced to move, about 4.5% higher than national average.

– Statistics Canada: Cost of Canadian housing (covers water, utilities) shot up by more than 208% in the decades since 1980. Rent had a 144% increase during this period, while owner costs (inclusive of carrying costs) went up by 205.6%. Tuition had the most dramatic growth at 932%.

 
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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