September 8th, 2020 Mortgage Industry Update

The Bank of Canada announced on July 15th that its overnight lending rate will remain at 0.25%. The prime rate remains 2.45%. The Bank of Canada has openly stated that it will more than likely keep rates at this “effective lower bound” for the immediate future until the effects of the pandemic are more clear.

Additionally this week:
– CREA: Only five urban markets nationwide saw their condo values reach new heights in July. Ottawa ($369,200), Oakville ($600,600), Guelph ($375,300), Montreal ($316,100), and Niagara ($361,300). National benchmark stood at $477,900, up 6.37% from 2019.

– ADP Canada and Maru/Blue report: 45% of working Canadians would prefer to work remotely for at least three days a week. 61% aged between 18 and 34 say they would support the split week between the office and their house.

– BILD: The new home market experienced the strongest July for new home sales since 2007, as a total of 3,544 new properties were sold. Sales were up 36% from the same time last year and 40% above the 10-year average. 1,553 single-family homes sold, up 187% from 2019.

– Re/Max brokers and agents survey: Canadians are almost equally split in their confidence in Canada’s real estate market, with 39% as confident as they were prior to the pandemic, and 37% slightly less confident.

– TorontoRentals.com report: Price for new rental listings for all property types in the GTA was down in July 8.7% annually. Condo apartments were $260 less, year-over-year, for units hitting the rental market. Average price for rental apartments went up 1.7% to $2,065 per month.

– Statistics Canada: GDP plunged 11.5 per cent in the three months ended June 30 – a period that encompassed the worst of the lockdowns in Canada. This is the biggest quarterly slump on record. Expressed on an annualized basis – the decline was 38.7 per cent.

 
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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