June 18th, 2019 Mortgage Industry Update

The Bank of Canada announced on May 29th 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.

Additionally this week:
– Finder.com: Canadian cities have some of the smallest discounts for moving out to the suburbs. Toronto: price is just 20 per cent cheaper than in the inner city, Vancouverites can save 24%. Compared to New York, you get 55% discount moving to suburbs, or London, where it’s 45%.

– CMHC: Seasonally adjusted annual rate of housing starts slipped to 202,337 units in May, down 13.3% from 233,410 in April. Economists on average had expected 205,000. Pace of urban multiple-unit projects fell 18.5% to 141,851, pace of single-detached starts rose 1.8% to 45,095.

– The Ontario government has passed legislation which aims to tackle the province’s housing crisis. The More Homes, More Choice Act will cut red tape, helps keep costs predictable, and encourages new and innovative solutions to housing design, construction, and ownership.

– Royal LePage report: Forecasting prices in the province’s recreational regions to rise a further 8% over the next twelve months to $424,905. Mainly due to baby boomers: “We are seeing people in their 50s and 60s cashing out with significant amounts of money”.

– Avison Young: Canada’s vacancy rate for industrial properties stood at historic low of 3% during the first quarter of 2019. 10 of the 11 markets studied reported lower vacancy levels on an annual basis. Vancouver, Toronto, Ottawa posted lowest vacancy levels in North America.

– TREB: 9,989 GTA property sales last month, up 18.9% from May 2018 and from April when 9,042 homes traded hands. Second consecutive month of double-digit gains. Active listings down 4.3% from May 2018. Average selling price up 3.6% year-over-year to $838,540.

 
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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