A client forwarded me the following article from Sunday's Globe & Mail and asked if it made me nervous about Ottawa's condo market:Toronto Condo Market Hits ‘Down’ Button
The short answer is ‘no’. While prices are getting high in Ottawa, too high in some instances, I have yet to see signs of a bubble about to burst so long as—
1. Federal government employment provides a healthy and stable income base
2. Ottawa condos are still largely owner-occupied as compared to Toronto; although investor fever is starting to catch on, we are nowhere near the number of investor-owned condos in Toronto (estimated at 40% of all units)
3. Most Ottawa developers do not allow ‘re-assignment’ of their units ie. selling a condo to another investor before the building has been completed
4. Demand for affordable 1-bedroom condos in the downtown core continues to outpace supply
