January 14th, 2020 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:
– BILD: November new home sales were up 53% from 2018 to 4,720. This was 19% above the 10-year average. There was a 207% surge in sales of freehold single-family homes with 1,156 units. This was 4% below the 10-year average. Condos up 32% to 3,564 sales, 29% above 10-year average.
– TREB: Home sales rose 17.4% in December compared to 2018, with 4,399 properties changing hands. The average selling price was also up 11.9% yearly to $837,788, and 0.5% from November. The number of homes sold fell 3% from November, the biggest decline since February.
– Rentals.ca and Bullpen: 2019 rental forecast for Toronto was an 11% increase. Actual amount turned out to be 8.6%. Condominium rents rose by 4%, purpose-built rentals up 9%, single-family homes up 11%. 2020 forecast is rents to average $2,770 per month, a 7% annual increase.
– At the end of Q3 2019, Canada Mortgage and Housing Corporation reported nearly 72,000 rental units under construction in Canada. That’s the highest rate in more than 30 years. The annual growth rate of 21 per cent in the third quarter of 2019 was the highest since Q2 2016.
– Bank of Canada: In Q3 2019 the average variable interest rate for new mortgages stood at 3.89% in September, which was 1.57% larger on a monthly basis. This was also a massive 25.89% higher compared to the same month in 2018. Rate is highest going back at least 4 years.
– Ontario landlords can increase leases/rents by 2.2 per cent this year. It’s the largest increase in provincial rental guidelines in more than six years.
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: