December 3rd, 2019 Mortgage Industry Update
The Bank of Canada announced on October 30th 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 for the remainder of 2019 and into early 2020, with the next major move likely being a rate decrease.
Additionally this week:
– RE/MAX predicting average Canadian residential prices to increase by 3.7% in 2020. As much as 51% of Canadians are planning to buy homes in the next five years, significantly above the 36% proportion seen during the same time last year. GTA average price projected to increase 6%.
– Rentals.ca: Average rents for residential properties in Canada increased by 5.5% year over year in October to $1,940, while median rent was $1,850, up 8.9% from a year earlier. Townhouses posting biggest jump at 19.7% while condominiums reported the smallest growth at 0.8%.
– BILD: Prices of new homes were down for the single-family sector in October; by 3.6% from 12 months earlier to a benchmark $1,074,791. For condos, the benchmark price was up 7.5% to $833,827. Inventory increased to 19,718 from the previous month as new projects came to market.
– BILD: New freehold home sales in the Greater Toronto Area are up 178% in October from the same time in 2018 (which was near a record low at the time) to 1,296. Also a 3% decrease in new condos meant sales of 3,424 of these properties, still 13% above the 10-year average.
– CMHC Canadian Housing Survey: About half of Canadian households have either moved in the past 5 years or intend to within the next 5 years. Upgrading to a better quality home was the top reason, followed by moving to a more desirable neighbourhood, or to become a homeowner.
– Reuters poll of 18 economists, property market analysts: Canadian home prices will enjoy sustained modest growth over the next few years. Consensus is average national house prices will outpace current inflation rate of 1.9%, and will see gains of 3.0% next year and 2.9% in 2021.
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.Share this post on: Connect with us on: