Time To Check Ottawa Housing Market

At the risk of sounding like a broken record, I have been cautioning since April that the surging commodity market, record high energy prices and overpriced housing were eerily reminiscent of the state of affairs that existed just before the high-tech bubble burst.

The backlash from a slumping U.S. housing market could easily spill over into Canada. Until last week, that has largely been ignored. Three months ago, head of capital market research, told: "The biggest threat facing Canada today is a major correction in U.S. housing and there are signs that such an event might already be brewing."

Nevertheless, an optimistic outlook persisted until this week when both Scotiabank and TD Bank conceded that the downturn in the United States will hurt Canada's economy.

From where I sit, it already has.

The Ottawa housing market has stumbled and there's no shortage of For Sale signs on front lawns that have been there for months without so much as a nibble, despite drastically reduced asking prices.