No, minus 16 degrees is not hot but the real estate activity is scorching. If you were lucky enough to visit an open house this weekend, you'll know the boots at the door were piled up and the wait to get into the house was annoying. Condos too.
Of course this has everything to the new mortgage rules:
1. Mortgage amortization periods will be reduced to 30 years from 35 years;
2. Maximum amount we can borrow to refinance our mortgages will be lowered to 85% from 90%;
3. The government will withdraw its insurance backing on lines of credit secured on homes (such as home equity lines of credit).
We experienced this buying frenzy 3 or 4 years ago when the amortization was reduced from 40% to 35%. Of course any advantage the buyers were expecting went up with smoke as the buying frenzy that ensued drove up prices so in the end, the only winners were the Vendors.