March 5th, 2019 Mortgage Industry Update

The Bank of Canada announced on January 9th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands at the Bank of Canada will very gradually increase rates in 2019. 

Additionally this week:
– BC government says it has launched Canada’s first registry aimed at cracking down on pre-sale property flipping (assignments) and tax evasion. Condo developers will be required to securely gather and report the identity and citizenship of anyone assigning a project.

– BILD: January GTA new construction single-family home prices down 8.1% from 2018 to $1.13M. Was $1.14 million a month earlier. Condo and stacked townhome prices up 12.5%, costing $803,638 compared to $796,815 at the end of December. Sales of new single family homes up 13% from 2018. Condo sales also up 14% in that period to 942 transactions. Single-family home sales 53% below the 10-year average; condo sales 5% below.

– Bank of Canada Governor Stephen Poloz says the path toward higher interest rates is “highly uncertain” due to lingering questions around housing and investment, even as he sticks to his message that borrowing costs eventually need to head higher.

– Royal LePage: Median price of a luxury condo will rise 5.4% over the next year in Toronto and 7.7% in Montreal. GTA luxury condos appreciated 10.2% from January 2018 to average of $2,268,571. Baby Boomers downsizing, selling large single-family homes for more manageable suites.

– Federal NDP leader Jagmeet Singh is outlining how his party would bring home ownership into reach for more young Canadians. Calling on the CMHC to support co-housing as a mortgage option, and re-introduce 30-year terms to insured mortgages.

– Point2 Homes: Fully 1/3 of the fastest growing North American metropolitan markets in terms of housing prices are in Canada. Over the past 5 years, 18/83 large urban markets experienced home price growth rates larger than 50% – and of the 18 leading cities, 6 are in Canada.

 
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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