Some news from a recent RBC Economic Research report.
"Once again, the Ottawa-area housing market recently demonstrated its ability
to move past soft patches with minimal damage. After reaching all-time
highs early this year, home resales plummeted in May (on a seasonally adjusted
basis), as homebuyers opted to sit out the traditionally strong spring
season. Although such market movements were somewhat more dramatic
than in other areas of the province, they were largely driven by the same
transitory factors (HST and new mortgage lending rules). Consequently, it
was not surprising to see Ottawa homebuyers cautiously returning to the
market early this fall, once these special factors had largely run their course.
Nonetheless, the weak level of demand in the spring and summer amid still
plentiful availability of homes for sale applied downward pressure on prices.
This trend had a beneficial effect on affordability in the third quarter with
RBC’s Measures dropping 2.0 to 2.9 percentage points (depending on the
housing type) and helped to reduce some of the stress that had built up in themarket in the past year."
Amazingly, in Ottawa it would cost 38 % of household income to own a typical home. The same house in Vancouver would devour almost 70 %. Quite a difference.