December 27th, 2016 Mortgage Industry Update

The Bank of Canada announced on December 7th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Many fixed rates have risen by 10-30 points due to the new mortgage rule changes.

Additionally this week:
– CMHC: In wake of tighter mortgage qualification rules 2018 will see rebound in condo construction due to demand for more affordable housing.

– CREA: Annual sales in B.C. will decline by 12.2% in 2017. Average sale prices in the province have also been predicted to drop by 7.8%. Alberta sales will increase by 3.5 per cent next year, while average sale prices will decline by a miniscule 0.8 per cent.

– Statistics Canada: Household debt as a share of income has broken yet another record in Q3. Up to 166.9% from Q2’s 166.4%.

– CREA: National home sales down 5.3% in November; greatest drop in monthly home sales nationwide since August 2012. Due to new rule changes.

– CREA: Vancouver is no longer a seller’s market. Unit sales fell 37.4% to 2,225 and the average price dropped 3.8% to $895,084 in Nov.

– BCREA: “BC home sales (89,000) trend toward 10 yr avg (83,000)”. Sales down 20.1% year-over-year in November. Prices down 6.4% to $625,871.

 
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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