May 14th, 2019 Mortgage Industry Update

The Bank of Canada announced on April 24th 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 2019.

Additionally this week:
– Sotheby’s International Realty Canada: 28% of ‘modern family’ homeowners in major Canadian metros said that transit-friendliness is one of their top 3 homebuying criteria. Transit links more important than car-friendliness (17%), with cycle-friendly neighbourhoods trailing on 4%.

– TREB: Sales across GTA up 16.8% year-over-year in April as 9,042 properties traded hands. Detached home sales up 21.9%. Average selling price for all properties inched up 1.9% year-over-year to $820,148.

– CMHC latest quarterly assessment: Improved conditions (mostly easing price acceleration) have reduced Canada housing market vulnerability to moderate, from highly vulnerable (has been for 10 consecutive quarters). Vancouver + Toronto’s overvaluation reduced from high to moderate.

– TD Bank economists: The stress test led to approximately 40,000 fewer home sales nationwide during Q4 2018. Impact of stress testing has been far more enduring and extensive than anticipated. Immediate nullification of the rules would boost Canadian home prices by around 6%.

– Urbanation: Number of condos under construction as of Q1-2019 surged to a record 71,378 units across 242 projects, rising from 61,555 units (221 projects) in Q1-2018. Average sold index price within all projects in Q1-2019 increased by 1.7% from Q4-2018 ($766 psf to $779 psf).

– Urbanation: 3,073 new condos sold across GTA in Q1 2019, down 26% year-over-year to lowest level since 2013. Volume of new openings was at 10-year-low of 1,829 units in just 8 new projects. 90% of all new condos in development were pre-sold as of Q1-2019.

 
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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