September 24th, 2019 Mortgage Industry Update

The Bank of Canada announced on September 4th 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, with the small possibility of a rate decrease.

Additionally this week:
– CREA raises national home sales forecast to 482,000 units this year, up 5% from 2018, also up 19,000 from June forecast. Sales are forecast to rise by 7.5% to 518,100 units next year. Prices expected to hit average of $491,000 this year, and gain of 2.1% next year to $501,400.

– CREA: The number of real estate units sold climbed 1.4% in August from a month earlier (sixth straight month of increases), and are now 17% above the six year low recorded in February. Benchmark home prices also rose 0.8% in August, the biggest one-month gain since April 2017.

– Nestpick study: Toronto has been found to be one of the world’s best cities (top 4 worldwide) in terms of digital infrastructure, health care, and education. This was an especially prevalent view among members of Generation Z. The city earned a strong score of 86.2 out of 100.

– The Liberals have promised to increase limits and make some other changes to the First-Time Home Buyer program, if they win the federal election. The Liberals have also pledged to introduce a consistent, nationwide speculation and vacancy tax for non-resident Canadians at 1%.

– Statistics Canada: Median size of condo apartment built in Ontario in 2016-2017 was 665 sq ft. New condos 35% smaller than condos built in 80s and 33% smaller than those built in 90s. Average household contained 5.6 people in 1871. That number fell by more than 50% to 2.4 in 2016.

– Canadian municipalities issued $8.3 billion worth of building permits in July according to new figures from Statistics Canada. The 3% gain month-over-month and 0.7% increase from a year earlier was driven by gains in the multifamily and commercial property types.

 
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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