November 26th, 2019 Mortgage Industry Update
The Bank of Canada announced on October 30th 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 the remainder of 2019 and into early 2020, with the next major move likely being a rate decrease.
Additionally this week:
– CMHC Study: 42% of buyers this year said they felt concerned or were uncertain about the process of buying a home. Jump from the 37% of buyers who said the same in 2018. 78% of buyers interacted with a real estate agent, up from the 61% who consulted a professional in 2018.
– House price index from Teranet and National Bank: House prices dropped by 0.2 per cent in October in Toronto. Toronto house prices are 4.1 per cent higher than a year ago. Some analysts say that the city’s accelerating population growth will keep the city’s housing shortage going.
– Sun Life Financial survey: 72% Canadian seniors admitted that retirement is not working out as well as they anticipated. 65% of those still working after retirement said that it’s because they need the additional income, not because they like working for working’s sake.
– CMHC mortgage survey: Last year, as much as 78% of home buyers acquired the highest-priced home they could afford. The proportion fell to just 60% in 2019. Nearly 1/3 of buyers spent $300,000 to $499,000 on their purchases this year, while only around 1/5 buyers spent $500,000+.
– CREA: October home purchase activity grew by 12.9% annually, with increases measured in around 80% of all local markets. Number of new listings shrunk by 1.8% month-over-month. National average home price stood at around $525,000, which was 5.8% higher on a year-over-year basis.
– Plans to regulate the short-term rentals market in Toronto will go ahead following the dismissal of an appeal. Short-term rentals through platforms such as Airbnb will be allowed in all housing types across the city but only in homeowners’ principal residences + secondary suites.
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.Share this post on: Connect with us on: