I’m reblogging this because the correlation between the mortgage stress test and higher house prices in Ottawa is pretty clear now. The stress test was introduced in October 2017 to first time buyers and was extended to all buyers in January 2018. Here’s the Home Price Index for that time period:
The Ottawa real estate market has always kind of marched to the beat of its own drummer. We are insulated from the highs and lows of markets like Toronto and Vancouver because of the steady presence of the public service, universities and increasingly, the high tech sector. But the difference between the Ottawa market and those markets is stunning right now: while Toronto and Vancouver house sales are down – Ottawa’s are up. Wayyy up.
I had a fixer-upper on the market two weeks ago: we had fifty showings (50!!!) in two days and 16 offers. (I believe that’s an office record but one that, in this market, will soon be beat.) It sold for $ 40K over asking, firm, no home inspection, no financing clause. And we’re seeing more and more of those. Almost nothing is selling without multiple offers. Buyers are getting frustrated as they lose out on…
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