New Info on Market Conditions in Ottawa as of December 2017
Friday Dec 15th, 2017
~~There are as predicted earlier to many clients a VERY positive change in Prices in Ottawa
This year they are up 7.3 Percent Year over year
1. The liberal are finally staffing up
In 2010 In Ottawa under the Conservatives there were 185,000 Public Servants in the Ottawa area.
That dropped to 145,000 by 2015
However it dropped further to 130,000 as of October 2016
This June it was at 160,000.
2. Military and RCMP moves to the west for the Nortel site which finally opened in April 2017 and the Former JDSU site for the RCMP.
So new military and RCMP are moving in in the west 80% of the time. Also Military members are moving to the West except those close to retirement or still working downtown or Hull.
3. The New Mortgage Rules are causing many to beat the rules by buying before January 1, 2018
New Mortgage rules are very severe for people in Toronto but still have a strong effect here.
One rule is the Stress test meaning you have to qualify for say a 5% rate vs say 3%. That starts January 1, 2018
It reduces buying power quite dramatically for some.
Another rule is your credit score has to be better than before and the criteria for approval get worse if your score is worse.
Another impact is that the Banks must insure the greater part of the mortgage under new rules so they pass that onto the person seeking a new mortgage.
So the we get bizarre circumstances where people buying a $1m house pay a higher interest than someone buying a $400k home and both are putting 30% down.
Mortgage brokers are recommending if let's say have 25% down that instead you put 19% down so you are insured via CMHC and the interest rate will be lower.
So in Reading this blog part of the increase is:
Some are buying this Year due to new mortgage rates
Newcomers are mainly moving to the west or South
There are more public Servants in town now.
What does this mean for the future:
The Liberals have to staff up even more because of Infrastructure promises affecting most departments and new complicated tax rules meaning that CRA will need to staffup big time
Next spring there will be even more coming to Ottawa but the west will not get as much of an advantage in price increase as that adjustment is well under way.Meaning increase will be more balanced between Ottawa East and Ottawa West.
So Market increase will be very solid in Ottawa next year.
Examples of Price Increases Year Over Year for this year:
Carlingwood 12.3%, McKellar Heights 11.7%, Manotic 11.4%
Orleans 4.9%, Cumberland 4.5%, Beacon Hill North 6%, Vanier 6.5% Carson Grove 5%