November 10th, 2020 Mortgage Industry Update

The Bank of Canada announced on October 28th 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. 

Additionally this week:
– TRREB: Average selling price for all homes across GTA climbed to $968,318 in October, up 13.7% from 2019, marking fifth consecutive month of record-breaking prices. Total sales up 25.1% to 10,563. Detached home sales up 33.9% to 5,263, prices up 15% to $1.205 million.

– Nanos Research Group survey: 45% of respondents believe the value of real estate in their neighbourhood will increase over the next six months, the highest reading since mid-March. At the same time, only 13% believe values will decrease, the smallest reading over the same period.

– A recent survey sponsored by Credit Canada using a representative sample of 1,500 Canadians revealed that, while 24% Canadians have used income supports (such as CERB) and 9% have used payment deferrals, 39% have no idea what they’ll do when the support runs out.

– Statistics Canada: GDP expanded 1.2% in August. Preliminary estimate for September, shows 0.7% expansion – fifth straight month of historically elevated readings as the economy rebounded from a sharp contraction from the COVID-19 lockdowns. Data suggest the economy grew 10% in Q3.

– BILD: September’s new single-family home sales in the GTA were up 168% year-over-year and up 110% over the 10-year average. Benchmark prices were up 9.1% to $1,179,249. Condo sales were up 15% from 2019, and 33% from the 10 year average. Prices were up 20.9% to $1,016,550.

– TRREB: Average resale condo price in Toronto region rose 8.3% to $633,484 in Q3. Condo sales rose by 10.5%; 7,072 sales, up substantially from 3,459 sales in Q2. 17,613 new listings, up 84.6% from 2019. Active listings at end of quarter were more than double than 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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