January 22nd, 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:
– Sotheby’s International Realty Canada: In GTA sales of luxury homes worth $1M+ declined 31%, while sales of homes over $4M fell 40% last year. In the city of Toronto, sales of homes over $1M fell 19%, while sales of over $4M dropped 39%.
– The latest survey from rental site Padmapper shows rents jumped by double digits over the past year in 17 of 24 Canadian cities, with some of the country’s (previously) most affordable markets seeing the largest hikes.
– BMO: National sales activity declined 11.1% in 2018, while the average price of a home dropped 4.1%. Largest downturn since 1995, first time prices have fallen since 2008. Average price was $472,000 in December, off by 4.9% from 2017.
– Teranet-National Bank Composite House Price Index: Canadian home prices fell 0.3% in December from November for the third consecutive month. Prices fell in seven of the 11 markets surveyed. Prices rose 2.5% on an annual basis, marking the smallest 12-month advance since 2009.
– Royal LePage report: Canada’s home prices increased 4% year-over-year in Q4 2018, overall median price now up to $631,223. Two-storey median up 3.9% to $745,007. Bungalow median up 1.5% to $516,950. Condos sharply up 7.2% to $447,915.
– Altus: Markets in the Greater Golden Horseshoe, including the GTA, have the most upside potential for an increase in sales activity in 2019 given the depth of the decline in 2018 and building off of the sales recovery noted in the back half of 2018.
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: