Ottawa Housing Market Will Get Worse

The Ottawa Housing Market will get worse before it gets better. All areas eventually could experience a crash, or a decline of more than 10 % from peak to trough. The most hard-hit areas will be in Kanata, alongside the Barrhaven, and in Rockcliffe Park and Glebe. The others will soon experience measurable declines, with drops extending into 2008 and even 2009.

The housing boom has already begun to unwind, driven by the increase in adjustable mortgage rates (putting homes further out of reach of buyers) and the decline in flippers who had pushed prices higher hoping for quick sales.