As the Summer Cools, Ottawa's Real Estate Market Heats Up

It looks like the Canadian Mortgage and Housing Corporation's (CMHC) crystal ball is working correctly.  In their publication 'Housing Market Outlook - Ottawa', released in Fall 2012 (http://www.cmhc-schl.gc.ca/odpub/esub/64311/64311_2012_B02.pdf?fr=1378574877744), CMHC predicted that due to tighter mortgage rules, increasing incomes, and modest home price increases, real estate sales the second half of 2013 would increase.  Accordingly to a report released on Thursday by the Ottawa Real Estate Board (OREB), sales did just that - home sales in August 2013 were tallied at 1,219, outpacing both sales in August 2012 by 6.5% and the August 5-year average.

According to the same report, prices of homes in Ottawa also saw an increase in August 2013.  The average price of a residential home (including condos) sold last month was $348,519, an increase of 0.4% over August 2012.

As CMHC predicted, the tighter lending rules introduced this and last Summer (most notably the shorter amortization periods for insured mortgages and less overall insured mortgages being sold to would-be buyers) combined with the increasing mortgage interest rates and Ottawa's low housing affordability index, were all factors that contributed to this increase in sales.  If CMHC's prediction holds true, you can expect to see this increase continue until mid-2014.  

What does this all mean if you're sitting on the fence waiting to buy a house?  It means you should stop sitting and start acting!

Thanks for reading.

Taylor Bennett

Sales Representative - Bennett Pros

www.BennettPros.com

Taylor@BennettPros.com

@OttawaTails