March 30th, 2021 Mortgage Industry Update

The Bank of Canada announced on March 10th 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. Due to recent increased confidence in the markets, fixed rates have been slightly increasing. 

Additionally this week:

– Royal LePage expects the aggregate price of a home in Canada’s recreational markets to soar 15% in 2021, to just over $500,000. This comes on top of an average price increase of 16% in 2020. Predicts Ontario to climb 17% on top of a nearly 20% increase in 2020.

– 6 in 10 Canadians believe the value of real estate in their neighborhood will increase over the next six months, according to the latest weekly survey by Nanos Research Group for Bloomberg News. First time such readings have surpassed 60% since polling began in 2008.

– Statistics Canada: Newly built Canadian homes are rising faster in price than at any time in more than three decades. Prices rose 1.9% in February from the previous month.This was the fastest one-month increase since 1989.

– Realosophy: GTA condo prices were down 3.7% annually in February. In Toronto, 41% of condos sold for more than the seller’s asking price last month. Excluding the pre-pandemic peak of February and March 2020, it’s the largest share of sales priced above asking since 2017.

– Statistics Canada: The country’s annual inflation rate hit a pandemic-era high of 1.1% last month, driven by a rise in gasoline prices that suggests an economic recovery is on the horizon. Is a tick above January’s 1%.

– Ontario’s average home sales price last month stood at $864,159, representing a 24.5% increase from February 2020. The province’s year-to-date average price was $837,731, up by 25.4% annually and exceeding $800,000 for the first time ever.

– Ontario’s home sales activity had a 36.3% annual gain for a total of 21,518 units sold through MLS Systems in February. Marked first time sales have pasted 20,000 transactions during February. Year-to-date sales also reached a peak of 35,344 units, up 33.6% from 2020.

 
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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