January 16th, 2018 Mortgage Industry Update

The Bank of Canada announced on December 6th that it’s overnight lending rate will remain at 1.00%. The prime rate remains the same. It is common prediction for rates to rise another 2 times by the end of 2018. Most fixed rates have now stabilized in the 3%+ range.

Additionally this week:
– Royal LePage: Canada’s residential real estate market saw strong but slowing year-over-year price growth in the fourth quarter of 2017. Based on data in 53 markets, the price of a home in Canada increased 10.8% year-over-year to $626,042 in the quarter.

– CMHC: Last year was a blockbuster for Canada’s real estate developers after work began on the most homes in a decade amid soaring demand nationwide. Construction started on 219,675 units, according to 2017 data, up from 197,916 in 2016 and the most since 2007.

– Royal LePage: Median price of two-storey home rose 11.1% year-over-year to $741,924, bungalow climbed 7.1% to $522,963. Condo grew faster than any other housing type studied, rising 14.3% to $420,823 on a year-over-year basis. 19.5% in GTA, 19.6% in the City of Toronto.

– Total sales in the Greater Montreal Area increased 8% to 44,448 on the strength of condominium sales and good overall activity on the Island of Montreal. Sales growth exceeded 20% in five of the city’s most popular boroughs. GTA was down 18%, GVA was down 10%.

– Statistics Canada: 78,600 new positions in December, smashing analysts’ expectations of a modest 1,000 jobs gain. The jobless rate dipped to a 41-year low of 5.7%.

– TREB: Homes in the Greater Toronto Area were selling for an average $822,681 in 2017, up 12.7% from the previous year. Sales down 18.3% compared to 2016. Average price for all housing types the last month of 2017 was $735,021, up from $730,125, or 0.7 per cent, from a year earlier. But that December price was down 3.5 per cent from the November’s average price.

 
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.

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