December 15th, 2020 Mortgage Industry Update

The Bank of Canada announced on December 9th that its overnight lending rate will remain at 0.25%. The prime rate remains 2.45%. The Bank of Canada suggests that they will more than likely keep rates at this “effective lower bound” until 2023, as they observe the full effects of the pandemic. 

Additionally this week:
– RE/MAX: Toronto is closing out 2020 on top of the list of Canadian cities with the most home starts, completions, and absorption. Toronto is number one on the list by some 10,792. As of December 4, the data showed Toronto with 30,085 starts.

– Bank of Canada stands still on the overnight rate at 0.25%. Good news for variable rate mortgage holders as there is no expected change in prime rates!

– RBC Poll: 31% of respondents said they would be willing to help their children/immediate family members pay for a new home, 46% would like to provide assistance to loved ones who are currently renting. 25% said that they have been assisting family members since pandemic began.

– Altus Group: Commercial real estate investment in GTA in Q3 2020 fell 23% compared to Q3 2019. Total Q3 commercial investment in the GTA was $4 billion, led, overwhelmingly, by the land sector, which accounted for $1.8 billion, or approximately 45% of total investment volume.

– New study by real estate brokerage Properly: At present, only around 48% of millennials are happy with where they live. This was considerably lower than the pre-pandemic level of 67%. Around 8% said that they will push through with their plans to buy their new homes next year.

– TRREB: Detached house prices up 15.2% to $1.2 million in GTA. 19.2% gain in the 905 communities surrounding the city and an 8.7% increase in the city of Toronto to an average of $1.48 million. Sales of detached houses jumped 30% across GTA: 33.6% in 905 areas and 19.3% in city.

 
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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