Ottawa real estate market could catch cold as Toronto market is cooled down

Realtors warn that changes directed at Toronto's red hot market could have negative impact on capital


Ottawa real estate could be the collateral damage if the provincial government moves to cool down Toronto’s housing market.

The provincial government’s budget next week is expected to include measures aimed at runaway prices in Toronto, with possible taxes aimed at speculators or foreign investment.

Ottawa broker Paul Rushforth said an approach that is too broad will really hurt Ottawa’s market.

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“We’re finally starting to see a very robust market and this would cripple it,” he said. “We’re finally seeing homes selling quicker and some bidding wars in there.”

He said Ottawa doesn’t have the same issues with speculators, but there is starting to be outside interest in the city’s more stable market.

“There are lots of stories of people who are selling their house in Toronto, because they have made such a gain on it, and moving to Ottawa and paying cash.”

Tim Hudak, CEO of the Ontario Real Estate Association, said big changes to the Toronto real estate market will be felt everywhere.

“You put a large rock in the middle and it has ripple effects,” he said.

He said they’ve encouraged the government to look at targeted measure that will focus on Toronto and not interfere with markets like Ottawa.

“Ottawa is a much more balanced market where prices are going up, but by low single digits on average.”

This article originally appeared in Metro News.

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