October 2014 Industry Stats
The Canadian Association of Accredited Mortgage Professionals (CAAMP) released their new set of statistics on October 8th, 2014. The major statistics are summarized as follows:
Bank of Canada interest rate remains at 1%
Prime lending rate remains at 3%
The 5Y variable qualifying rate remains at 4.79%
The Government of Canada Bonds maintain their overall position
The number of housing starts decreased from 69,900 (August 2013) to 52,600 (August 2014)
The average MLS resale price in Toronto increased from $503,094 (August 2013) to $546,303 (August 2014), a 7.9% increase
What does this mean for industry professionals? Overall, the Toronto housing market remains strong, as growth is present. However, the housing starts fell for the month of August, as compared to last year. If this pattern continues for the months ahead, it could be a reason for alarm.
What does this mean for homebuyers? Mortgage interest rates are likely to remain stable for the upcoming month.
This month’s report features more accurate data relating to housing sales vs. mortgage credit growth, and new mortgages vs. repayment of principal. The graphs show existing home sales stabilizing while mortgage credit decreases. Also, new mortgages are declining, while borrowers are repaying their principal.
Stay tuned for next month’s update!
For a more in-depth and professional review of your individual and personalized situation please give Harpreet Singh The Mortgage King a call at (416) 795-1919.
The full document of statistics is as follows: