May 7th, 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:
– The latest reading of Canada’s economy brings both good and bad news for the housing market. While growth slowed in February – to just 0.1% following a 0.3% rise in January – the weakness will almost certainly rule out any interest rate increases this year.

– Bank of Canada: Canadian Mortgage Debt Now Over $1.55T in March, record high. Up 0.12% from the month before. This represents an increase of 3.2%, when compared to the same month last year. The annual pace of growth is the slowest for March in 36 years.

– RBC Economic Research: Number of millennials in Vancouver, Toronto and Montreal actually saw its strongest increase in 12 years in 2018, with the demographic growing by 2.9%, representing 96,000 new young professionals. Toronto saw bulk of increase with 4.1% increase (58,000).

– Avison Young: Transactions involving office properties added up to $767M during Q1 2019, 8% more than quarter prior. GTA’s overall commercial sales – covering industrial, retail, office, multi-residential, and ICI properties – fell by 18% quarter-over-quarter to end up at $2.7B.

– BILD: Benchmark price of new single-family homes was $1,116,640 in March, down 7.6% over the last 12 months, while the benchmark price of new condominium apartments was $780,839, up 5.1% over the last 12 months.

– BILD: GTA new home sales up 20% year-over-year in March to 2,314, including 886 single-family homes (sales still 36% below 10-year average). Condo sales 1,428, down 13% from 2018, 34% below 10-year average.

 
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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