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May 21st, 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:
– Teranet-National Bank Composite House Price Index: Prices were flat last month from March. It was just the second time in 21 years of data that index showed no increase in April. Prices fell in 6 of 11 metropolitan markets surveyed. On an annual basis, the index rose 1.2%.

– Altus Group: A total of 502 investment property sales valued at over $1M transpired in the GTA during Q1, and overall investment stood at $4.1B, but down 29% from 2018. Fifth consecutive quarter of decline in investments. The deal count was also the lowest measured since Q1 2015.

– Genworth Canada survey: 57% of first-time home buyers in Canada said that they are worried about not being able to buy the residential property they wanted because of an insufficient down payment. In Toronto, the number rises to 68%.

– Report by former B.C. deputy attorney general Maureen Maloney: $5B was laundered through B.C.’s real estate market last year and increased the cost of buying a home by 5%. Estimated that $7.4B overall was laundered in B.C. in 2018; across Canada was about $47B.

– CMHC: Seasonally adjusted annual rate of housing starts in Canada increased to 235,460 units in April, up 22.6% from 191,981 in March. Fuelled by start of work on new multi-unit projects such as condos, apartments, townhouses. Economists had expected an annual pace of 196,400.

– Statistics Canada: Toronto median condo size built from 2016 to 2017, fell to 647 sq ft. – down 5% from those built from 2011 to 2015. The median sized unit delivered between 2016 to 2017 is 39.53% smaller than those made during the 1990 peak.

 
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.