January 15th, 2019 Mortgage Industry Update
The Bank of Canada announced on January 9th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands at the Bank of Canada will very gradually increase rates in 2019.
Additionally this week:
– Bank of Canada stands still on the overnight rate at 1.75%. Good news for variable rate mortgage holders as there is no expected change in prime rates!
– Urbanation: Average monthly rent in Toronto jumped 9.3% to $2,309 in 2018. Biggest yearly gain since 2010, more than double the 4.1% average over the past 8 years. Forecast for 2019 to average about 5%.
– CMHC: Number of housing starts in December 2018 was 206,981, compared to the 212,338 starts in November. Fifth decline in the last six months. Economists had expected an annual rate of 205,000.
– Statistics Canada: As much as 76% of Canada’s national wealth is locked into real estate. Total volume of national wealth was at $11.415T during Q3, with real estate representing $8.752T. From Q1 2009 to Q2 2017, value of Canadian land steadily grew from $2T to approx $4.2T.
– TREB: Total residential transactions numbered 77,426 in 2018, down 16.1% from 2017. Overall average sold price for a GTA home was $787,300 in 2018, down 4.3% from 2017. Total number of new listings was also lower, pulling back 12.7% to 155,823 in 2018.
– Zoocasa: Average national price levels are predicted to grow by only a miniscule 1.7% (up to $496,800) this year. Data from the CREA also indicated that total nationwide sales will fall for another 0.5% in 2019, after an 11.2% drop last year (down to 458,200 transactions).
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: