July 23rd, 2019 Mortgage Industry Update
The Bank of Canada announced on July 10th 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 for the remainder of 2019, with the small possibility of a rate decrease.
Additionally this week:
– CREA: Number of home sales in Canada up 0.3% in June from 2018, but down 0.2% from May. Up 10% from the six-year low recorded in February. National average price for homes sold was approx. $505,500, up 1.7% from 2018. Pace of home sales was near the 10-year average across Canada.
– Statistics Canada: New house prices in Canada slipped 0.1% in May, following three months unchanged. Largest declines in Saskatoon (-0.5%), Victoria (-0.4%). Toronto (-0.6%) and Vancouver (-0.9%) also dow. Ottawa largest increase (4.7%) followed by London (3%) and Montreal (2.7%).
– Royal LePage House Price Survey: Condos continued to be fastest appreciating residential property type in GTA. They enjoyed a 7.2% year-over-year increase during Q2 to reach $542,203. In comparison, the value of two-storey homes up by just 1.7% annually to $970,772.
– Urbanation: Condo vacancy rate rose to 1.5% in the second quarter, the highest since 2015. Rent increases eased to 7.6% from 10.3% last year, bringing the cost of an average-sized unit of 794 square feet to $2,475.
– Royal LePage CEO: “We now have evidence of a sustained market recovery in some of the nation’s largest markets (GTA), and signs of a price floor in other regions hit hard by the eighteen month-old housing correction”. Forecasts Q4 GTA prices will rise 1.4% annually to $844,819.
– CBRE Canada: Toronto, Vancouver tied for lowest office vacancy rate in North America. Vancouver’s office vacancy rate dropped to 2.6% in Q2 2019, from 4.7% only a year ago. Meanwhile, the vacancy rate in Toronto held steady at 2.6% thanks to a downtown construction boom.
Stay tuned for the next update!
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