January 21st, 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:
– Statistics Canada: Canada’s economy created 35,200 jobs in December, after two straight monthly declines. This brings the total number of jobs added to 320,300 this year, the second-most since 2007. The unemployment rate ticked down to 5.6 per cent, from 5.9 per cent in November.
– Ipsos: 92% of Canadians see at least one barrier to home ownership. 56% see qualifying for a mortgage as a barrier, 6% increase from 2018. Rises to 64% for consumers who recently purchased a home. 51% say they are concerned that stricter rules will prevent them from qualifying.
– In Royal LePage’s latest “Market Survey Forecast” released last month, condominiums saw their median price grow by 3.3% annually, up to $487,525. The median price of a condominium rose 7.8% year-over-year to $565,919 in the Greater Toronto Area during the fourth quarter.
– U-Haul’s 2019 migration trends report: North Vancouver, BC, is the No.1 Canadian Growth City, posting largest net gain of one-way U-Haul trucks entering versus leaving during past calendar year. Rest of the top 5 are in Ontario – Trenton, Saint Thomas, Brockville and North Bay.
– TREB: December active listings in fell by 35%. Throughout 2019, Toronto market racked up 87,825 sales, having grown by 12.6% from 2018. Ontario sales projected to increase between 4.2-7.3% annually, or by 204,200-213,800 units this year. Prices by 5.4%-6.5%, to $614,000–$633,700.
– BILD: The benchmark price of new single-family homes in November was $1,075,215, down 6.6% over the last 12 months. The benchmark price of new condominium apartments was $866,827, up 10.2% over the last 12 months.
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: