September 4th, 2018 Mortgage Industry Update
The Bank of Canada announced on July 11th that it’s overnight lending rate will increase to 1.50% from 1.25%. The prime rate thus increases to 3.70% from 3.45% with most lenders. The common prediction remains that there will be no further rate increases for the remainder of the year.
Additionally this week:
– Altus Group: Benchmark price of new single-family homes in GTA in July was $1,142,574, representing an almost flat 0.85% increase from June and 13.2% up from July 2017. New condominium apartments stood at $774,759, essentially unchanged from June but up 16.5% from July 2017.
– Angus Reid Institute: In Toronto, 27% classified their housing pain level as “miserable,” up from 17% in 2015. 56% of homeowners said current housing prices were hurting GTA. 59% of renters say they are “seriously considering” leaving the GTA.
– Nanos Research: 6/10 in Ontario would not be in favour of lower property taxes if it meant cutting services. 46% support or somewhat support property taxes being increased to the rate of inflation whatever the impact on services.
– Altus Group: GTA has seen commercial real estate segment reach record highs in 2018, with total investment value of around $5.6B (across 547 transactions valued over $1M) in second quarter alone. Bring total investments for the first half of the year to $11.3B, 6% annual gain.
– CMHC: Average credit score of Canadian home owners nationwide has improved. Residents in almost all major metropolitan markets reported an average of “very good”. Toronto saw the greatest increase in the past 5 years, increasing by 10 points to 775 as of Q1 2018.
– BILD: Total new home sales down 44% year-over-year, 55% from 10-year avg in July. Condos sales down 52% year-over-year, 40% below 10-year avg. Sales of new single-family homes up 85% from last July, 77% below 10-year avg.
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: