If you are keeping track of the Ottawa housing market, you will know that low interest rates and a decrease in home prices fuelled sales throughout the city and the country. But when will prices begin stabilizing?
According to the ReMax Bricks and Mortar Report, “the bounce-back that began in early spring has made this recession one of the shortest on record for real estate.” An increase in sales and values were visible in over half of the 11 markets surveyed. In addition, values have exceeded the exorbitant levels of 2008 in seven out of those 11 markets.
The market is quite balanced now, taking into consideration that over-supply is not an issue and the projected 3 to 5 percent price increase for next year. The only thing that may throw a wrench in the current equilibrium is that the federal government’s $5,000 first time homebuyer tax credit is not likely to be extended beyond next year.
Ottawa, specifically, showed an increase of 2.4 percent in home sales. Vancouver and Victoria fared the best with a 14 percent and 7.4 percent increase, respectively. Edmonton home sales were 6.2 percent higher, and Regina saw a 5 percent increase.