January 5th, 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:
– OREA: 23.4% annual increase in transactions last month. 19,740 total transactions; new record for the month. Year-to-date, home sales went up 6.7% to reach 212,977 transactions in the January-November stretch. Average selling price increased by 17.8% annually, reaching $744,036.

– Annual inflation accelerated to 1% in November, compared with 0.7% in October, Statistics Canada reported Wednesday in Ottawa. Economists had expected 0.8%, the median forecast in a Bloomberg survey. November was the strongest reading since February.

– Municipal Property Assessment Corporation report: Ontario’s saw $37.3 billion in new residential construction and/or additions to existing property this year. Ontario saw the completion of more than 36,000 new residential units and 16,000 residential condominium units in 2020.

– CREA: The national average house price is expected to increase by 9.1% to $620,400 in 2021. National sales declined 1.6% in November from a month earlier. Benchmark prices climbed 1.2% on the month to $650,100, the highest ever. They are up 11.5% over the past 12 months.

– Coming new year will see Ontario introduce new regulatory authority for home builders, vendors. Staring February 01, 2021, Home Construction Regulatory Authority (HCRA) will assume responsibility for regulating and licensing the people and companies who build and sell new homes.

– Rentals.ca and Bullpen Research & Consulting have released their latest National Rent Report, which reveals that national average rents for all property types are forecast to increase 3% in the new year, lead by Montreal (6%), Toronto (4%), and Vancouver (3%).

 
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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