July 24th, 2018 Mortgage Industry Update

The Bank of Canada announced on July 11th that it’s overnight lending rate will increase to 1.50% from 1.25%. The prime rate thus increases to 3.70% from 3.45% with most lenders. The common prediction remains that there will be no further rate increases for the remainder of the year.  

Additionally this week:
– RE/MAX Hot Pocket Report: Detached home prices rose on a quarter-over-quarter basis in 75% of GTA neighbourhoods in Q2.

– TREB: Condo apartments saw an average selling price gain of 5.4% year-over-year in Q2 2018. Average selling price now $561,338, while in the City 6.5% rise to $603,480. Sales down 16.5% with 6,837 units sold. 15.9% drop in new condo apartment listings.

– IPSOS survey: Over 90% of Canadians aged 65+ feel it is important to stay in their current home throughout their retirement. 69% said that maintaining independence was their number one reason. 51% of 75+ respondents listed staying close to community as their key reason.

– The Teranet-National Bank Home Price Index was up 0.9% in June compared to the previous month and is 2.87% above June 2017, however that was the smallest annual rise since 2013. Index surveys 11 markets and 10 of them showed price increases in June compared to May.

– Urbanation: Average rents rose 11.2% in Q2 compared to 2017, hitting $2,302 for an average unit of 732 sq ft. Steepest increases recorded in Toronto, up 12.1% to $2,379. Rents in GTA up 9.2% to $1,998. New condo registrations or units recently completed down by 28% to 3,26.

– Canadian housing starts in June jumped 28% to 248,100 annualized units, the fastest pace of home construction in almost a decade. Ontario’s starts almost doubled. Condo starts in Toronto reached a 30-year high for the month.

 
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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