July 3rd, 2018 Mortgage Industry Update

The Bank of Canada announced on May 30th that it’s overnight lending rate will remain at 1.25%. The prime rate thus remains at 3.45% with most lenders. The 5 year posted rate has officially increased with the Bank of Canada from 5.14% to 5.34%. Fixed rates are stabilizing from recent changes in the bond market.  

Additionally this week:
– CMHC study surveying 30,000 recent homebuyers in the three cities says 68 per cent of Vancouver respondents, 48 per cent of Toronto respondents and 42 per cent of Montreal respondents believe foreign buyers are driving up home prices.

– Mercer’s annual cost of living survey shows Toronto and Vancouver are Canada’s most expensive cities. In this year’s ranking Toronto advanced 10 spots to the 109th spot and Vancouver fell two spots to tie with Toronto. Mercer says most Canadian cities fell in this year’s ranking.

– Even as oil prices trade near the highest in four years, offices in Calgary are about as empty as they’ve been since at least 2008. Vacancy rate climbed to about 23% in Q1, up from 20% a year earlier, according to a report from Toronto-based Altus Group Ltd.

– The economy’s growth rate has failed to exceed 2% for 3 consecutive quarters, but observers are expecting that this will accelerate to 2.5% in Q2 2018, and projected to remain above 2% for the rest of the year.

– BC government taking steps to end opportunities to anonymously invest and hide wealth in real estate. Creating the first-of-its-kind publicly accessible registry in Canada. Aimed at improving transparency, identify the real owners, while ensuring owners pay their share of taxes.

– BILD: Price of new condos up 25.4% y/y to $758,370 in May. Condo sales in GTA = 2,003 in May, of 2,345 total. Sales 47% below May 2017’s record high, 1% from 10-year May avg. Single-family homes price down 6.4% to $1,144,191. Sales down 33% from last May, 78% from 10-year avg.

 
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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