December 11th, 2018 Mortgage Industry Update

The Bank of Canada announced on December 5th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands at the Bank of Canada will gradually increase rates in 2019. 

Additionally this week:
– Breaking News: 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!

– Bank of Canada: October showed that the national mortgage market experienced one of the slowest months of growth on record; just a 3.4% increase from 2017. Inching dangerously close to historically lowest levels of below 3.2%, in April + May 2001.

– TREB: Average selling price across GTA in November was $788,345, up 3.5% from 2017, but slightly down from October’s average price of $807,340. Semi-detached housing strongest performing sector with average prices up 8.3% to $791,760 from 2017. Condo prices up 7.5% to $556,723.

– TREB: New listings of properties available for purchase in the GTA sank 26.1% last month from 2017. Total active listings fell 9.8% to 16,420 units. Sales fell sharply by 14.7% to 6,251 from 2017, 3.4% to 6,588 units from October. Biggest monthly drop in eight months.

– Mattamy Homes Canada CEO: Canadian government should begin to ease on much-tightened mortgage regulations introduced at beginning of year, as rules have already fulfilled mandate of moderating housing markets. “We’re going to continue to lobby for a pullback now on B-20”.

– National MLS sales activity down 11.7% year-over-year in first 8 months of 2018, down to 327,206 units. National average price stood at $452,233 from January to August this year, declining by 3.7% annually. First observed decline in national sales prices since 2009 recession.

 
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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