January 19th, 2021 Mortgage Industry Update

The Bank of Canada announced on December 9th that its overnight lending rate will remain at 0.25%. The prime rate remains 2.45%. The Bank of Canada suggests that they will more than likely keep rates at this “effective lower bound” until 2023, as they observe the full effects of the pandemic. 

Additionally this week:
– This fall, Canada’s Immigration Minister, Marco Mendicino said the country will welcome more than 1.2 million new immigrants over the next three years, with up to 401,000 new permanent residents in 2021 — with nearly half projected to settle in Ontario.

– RE/MAX: More than 1,000 properties over $3M mark sold in GTA last year; up 55.7% from 2019 (1,062 vs 682) while up 1% ahead of previous record set in 2017 (1,062 vs 1,047). Over $4M climbed 53.4% year-to-date (379 vs 247), over $5M appreciated 44% to 180, up from 125 in 2019.

– TRREB: The December condo market saw 2,193 sales, making up 30.5% of the month’s total. Sales were up a whopping 75.4% year-over-year (74.5% in the 905 and 75.9% in the 416). With an average price of $600,840 in December, condo prices were down 2% from December 2019.

– TRREB: Number of homes sold in 2020 in GTA totalled 95,151, up 8.4% from 87,751 in 2019. Third best year on record. Average selling price in GTA was $929,699 in 2020, up 13.5% from $819,279 in 2019. Sales surged 64.5% year-over-year last month as 7,180 properties traded hands.

– Bloomberg Nanos Canadian Confidence Index: Around 49.2% of households are expecting home prices to increase over the next half-year. This was the highest concentration seen since May 2017, and pushed the overall confidence index to a ten-month high of 55.1.

– Over the first 11 months of this year, waterfront Muskoka property sales have seen an increase of 45.2% over the same period in 2019, totalling 2,311 units. This is according to sales activity recorded through MLS System for the Lakelands, which shows November data broke records.

 
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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