February 18th, 2020 Mortgage Industry Update
The Bank of Canada announced on January 22nd 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 early 2020, with the next major move likely being a rate decrease.
Additionally this week:
– Statistics Canada: Toronto population 6,471,850 in 2019, up 127,575 from 2018. Montreal; 4,318,505, up 65,205. Vancouver; 2,691,351, up 39,045. Canada’s urban population growth estimated at 463,424 total. Net increase in top 3 cities, was equal to half of all urban growth.
– TRREB: Active listings in January across the GTA sank 35% as compared to 2019. Sales climbed 15% as 4,581 properties traded hands. The average selling price was up 12.3% to $839,363. Detached homes sales were up 23.3%, and prices up 10.5% to $1.04 million. Condo prices up 15.1%.
– Urbanation: GTA sales of new condos up 27% in 2019 from 2018. 25,097 units sold, marking 3rd highest level on record. Builders reported 75% of units they brought to presale market in 2019 were sold, up from 63%. Pricing for available units hit a record high of $1,073 psf = up 9%.
– First-time home buyer incentive data: In total 3,252 applications were made to CMHC, with 2,730 accepted, last year. Total amount of money lent to homebuyers totalled $51.3 million. Ontario saw only 436 applications across the whole province. GTA saw only 148 applications.
– BILD and Altus Group: The number of new homes sold in Toronto jumped 45% last year to 36,471 units. It was well above the 13% increase in transactions of existing homes. The increase in sales of new homes was driven by single-family units, which jumped 157% last year to 9,523.
– Statistics Canada: Q4 2019 saw a 0.6% increase in Canadian home prices. Driven by 0.9% increase for resales; partially offset a 0.2% decrease for new home prices. Both condo apartments and houses gained 0.5%. For 2019 as a whole, prices were up 1.6%, gaining from the 1.1% in 2018.
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: