Mortgage Update: Ottawa, An Exceptional Market

Last Tuesday I attended a conference for mortgage brokers where Sandra Perez Torres, a Senior Market Analyst at CMHC, presented an Ottawa housing report. Here are some highlights:

• Ontario is suffering the most from the economic crisis with an overall unemployment rate of 9%, but in Ottawa the unemployment rate is only 5.2%.

• The public administration sector keeps Ottawa more resilient to economic slowdowns.

• The average weekly earnings in Ottawa are the highest in Canada, reaching $1,000.

• Compared to household income, residential real estate in Ottawa remains inexpensive. The average MLS price in Ottawa is the equivalent of 6 years salary—in Calgary or Toronto it is 8 years salary, and 14 years salary in Vancouver.

• The housing market in Ottawa is currently classified as "sellers market".

• The resale market is HOT. After a small dip in 2008, the average MLS price has climbed and is now $300,000.

• Houses are selling faster than last year and the prices have increased by 3.2% compare to 2008.

• Forecast: the rental market is expected to tighten in 2010, housing prices will rise steadily and we will remain in a "seller's market".

In a nutshell—if you plan to buy, don't wait. If you plan to buy rental property—buy now rather than next year.

To tie this with the mortgage market, most lenders expect rates to stay at the current levels for a while.

Here is what a good credit and availability of down payment can buy these days:

4-years Variable rate at Prime (2.25%)
5-years Fixed rate - 3.84%

With kind regards,
Vasko DeLev, AMP
Accredited Mortgage Professional
License # M08000574

Verico Capital Mortgages Inc.
106-18 Deakin St, Ottawa ON K2E 8B7
Direct Line: 613-882-7603
Email: vasko@CapitalMortgages.com