December 17th Mortgage Industry Update

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December 17th, 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:
– Royal LePage: Canadian house prices are forecast to increase by 3.2% to $669,800 next year led by Montreal, Ottawa and Toronto as millennials shifting from condominiums spur demand alongside immigration and the waning impact of mortgage restrictions introduced last year.

– KPMG Millennials and Retirement poll: Only 54% of millennials will ever be able to afford a home, a big drop from home ownership levels of previous generations. According to data from Statistics Canada, 70.1% of Canadians aged 35-54 and 76.3% aged 55-64 owned a home in 2016.

– In a survey for Bloomberg News by Nanos Research Group, 56% of Canadians said there’s at least a “somewhat likely” chance a recession will hit in 2020 — a sentiment broadly held across regions, gender and age. Only 34% said a recession is unlikely, with 10% unsure.

– Statistics Canada: The economy lost 71,200 jobs in November, registering the biggest drop in employment since 2009. October had a decline of 1,800. The total number of jobs added this year is now around 285,100. The unemployment rate increased to 5.9%, from 5.5% in October.

– Redfin study has revealed that Victoria, Vancouver, and Montréal are the most bike-friendly cities in Canada. Study ranked Canadian cities on how easy it is to get around by bicycle using several factors – including bike lanes, road connectivity, and hilliness.

– TREB: Condo benchmark prices up 9.5% from a year ago last month, versus 5.1% gains for single-family detached residences. The average price of a detached home sold in Toronto last month was $1.04 million, versus $617,658 for condominiums.

 
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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