So, November was another red hot month for Ottawa real estate. This seems to be the theme of 2017: home sales heating up and breaking new records.
Compared to November of 2016, this past month of November has seen a sales increase of 25% for total sales volume. That is a substantial increase (to say the least). A couple factors that may be contributing to this hot fall market: first off, buyers trying to get in before the new mortgage rules of Jan 1, 2018. And secondly, I would say it’s also due to the momentum of a very hot market all year long. Also, it may be that buyers have a fear that we’ll someday hit Vancouver or Toronto levels and that buying a home will be completely unaffordable.
This all leads us back to the issue of supply and demand. The governments appear to be making it increasingly difficult (ie. expensive & time-consuming) for developers to build new units, and at the same time making it increasingly difficult for many Buyers to qualify for financing (stricter lending rules). The lack of supply will naturally lead to increasing home prices, as will the increasing cost of building/developing more homes (and demand doesn’t seem to be slowing down with the constant immigration into major Canadian cities). Unfortunately, the stricter mortgage rules most often seem to hurt first-time home-buyers and those who are struggling to come up with down payments.
For the reasons mentioned above, my prediction for the market for 2018 will be continued growth, but at a slower pace. I doubt we’ll see another year as hot as 2017 has been.
With the new mortgage rules coming into effect, it is more important than ever to have an extremely knowledgeable mortgage broker in your corner to help navigate this difficult financing landscape. If you need a referral, I’ve got some great people
I’ll be in touch next month to summarize 2017’s market in more detail. In the meantime, please contact me if you have questions or simply wish to chat about real estate.
Sales Representative. Residential & Commercial.
Capital Homes Realty
217-1419 Carling Ave, Ottawa, ON
Cel: 613 262 1697
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