BuzzBuzzHome Corp.
February 17, 2010

If you live in a cave, then you have neither heard about the HST (HolyShitTax), nor the new mortgage rules…

These two measures, combined with an already hot market (maybe “already hot”), have the potential to create a super-hot real-estate market over the next few months.

Check out what the Globe and Mail has to say:

“Analysts expect a hot spring real estate market given Finance Minister Jim Flaherty’s move to tighten mortgage standards yesterday. Even before Mr. Flaherty’s announcement, home buyers had been expected to rush to beat the harmonized sales tax in Ontario and British Columbia. Now, there’s added pressure for the spring with an expected rush to beat Mr. Flaherty’s new qualifying standards that come into effect April 19. Economists expect a spike in sales, and prices, followed by a cooling period.”

Check out what Scotia Capital economists Derek Holt and Karen Cordes said in a research note today:

“The effect of the tightened mortgage rules will be to spur avoidance activity before the new rules become truly effective in July after the pipeline commitments on preapprovals burn off.”

Will we be seeing condo lineups again in Toronto and Vancouver? I am sure we will, but the question is… where will the next lineup be?

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