February 4th, 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:
– TREB reported the detached benchmark reached $961,100 in December, up 5.8% from 2018. Marks the 7th consecutive month of acceleration. The City of Toronto is naturally higher at $1,157,100, up 5.44% over the same period. This marks an acceleration in growth, not seen in years.
– Movinga study Best Cities for Families 2020: Three Canadian cities were ranked among the 10 most family-friendly places in the world out of 150 metropolises. Quebec City emerged as the world’s second most family-friendly city, Calgary was ranked eighth, and Montreal ninth.
– Bank of Canada projects the global economy will grow by just over 3 percent in 2020 and 3 ¼ percent in 2021. For Canada, the Bank now forecasts real GDP will grow by 1.6 percent this year and 2 percent in 2021, following 1.6 percent growth in 2019.
– TREB: There were 5,367 condominium apartment sales in the GTA in Q4 2019, this was a 3.8% increase from 2018. New listings down 11.9%. Average price of a condo sold up 10.4% year-over-year to $616,591. In the City of Toronto, the average price increase was 10.3% year-over-year.
– The national vacancy rate for rental apartment units declined in 2019 for a third consecutive year to 2.2% (from 2.4% in 2018), the lowest level since 2002, according to the latest Rental Market Survey report from CMHC. Toronto vacancy rates are 1.5%, up from 2018 levels of 1.2%.
– CREA: National average home price is up 9.6% in December from 2018 to $517,000. Sales were down slightly from November (0.9%) but jumped 22.7% from 2018. Active listings are at a 12-year low and there are just 4.2 months of inventory left—the lowest level since the summer of 2007.
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: