According to Statistics Canada, employment rose by 79,000 in November, bringing the unemployment rate down 0.1 percentage points to 8.5%. Full-time employment increased by 39,000 in November, the 3rd consecutive monthly increase. Part-time employment also rose in November (+40,000), following two months of declines.
November saw an increase in the number of private (+57,000) and public (+54,000) sector employees, while the number of self-employed workers declined (-32,000). In recent months, the number of employees in the public sector, as well as the number of self-employed, has trended up, while in the private sector, the trend has been relatively flat.
Most of the gain in overall employment in November was among women aged 25 to 54 (+51,000) and men aged 55 and over (+17,000).
Almost all the employment growth in November was attributable to the service sector (+73,000), especially educational services. With November's increase, employment in the service sector is back at its October 2008 level, while employment in the goods sector remained well below (-324,000) where it was at that time.
Employment growth was widespread across most provinces with the largest gains in Ontario, Quebec and Alberta.
Sunday, December 6, 2009
Thursday, December 3, 2009
Strong, again, Resale Housing Market in November
Greater Toronto Realtors reported 7,446 sales in November - slightly more than double the November 2008 result when GTA home sales had dipped markedly due to the economic downturn. Year-to-date sales were up 14% compared to the first 11 months of 2008.
This year in the GTA home sales will be in line with the healthy levels experienced between 2004 and 2006.
Increased resale home transactions in the Toronto area and country-wide played a key role in pushing the Canadian economy out of recession in the third quarter.
The average price for November transactions was up 14% year-over-year to $418,460. The average price year-to-date was up 4% to $394,464.
Very strong annual growth rates for sales and average price should be expected through the first quarter of 2010, because we will be comparing the current recovery to the housing market decline experienced last winter. As we move into the spring, growth rates will move to more sustainable levels.
This year in the GTA home sales will be in line with the healthy levels experienced between 2004 and 2006.
Increased resale home transactions in the Toronto area and country-wide played a key role in pushing the Canadian economy out of recession in the third quarter.
The average price for November transactions was up 14% year-over-year to $418,460. The average price year-to-date was up 4% to $394,464.
Very strong annual growth rates for sales and average price should be expected through the first quarter of 2010, because we will be comparing the current recovery to the housing market decline experienced last winter. As we move into the spring, growth rates will move to more sustainable levels.
Sunday, November 22, 2009
Hot Market Despite Cooler Weather
Winter may be fast approaching but there is certainly no cooling trend when it comes to the Great Toronto Area resale housing market.
In the first two weeks of November, Toronto Realtors reported 3,666 sales, an 84% increase compared to the same period a year ago. The Average price of GTA homes sold during this timeframe also grew, by 10%, to $415,066.
Condominium activity throughout the GTA was even more extraordinary. Sales of this housing type increased 90% to 959 transactions, with an average price of $296,664, up 15% year over year.
The number of sales in the City of Toronto increased by 88% compared to the same period a year ago, reaching a total of 1,560 transactions. The average price meanwhile, climbed to $441,893, a 10% increase from mid-November last year.
Condominium sales in Toronto almost doubled to 674 trasactions, an increase of 97% from a year ago. They sold at an average price of $317,939, up 13% year-over-year.
In the first two weeks of November, Toronto Realtors reported 3,666 sales, an 84% increase compared to the same period a year ago. The Average price of GTA homes sold during this timeframe also grew, by 10%, to $415,066.
Condominium activity throughout the GTA was even more extraordinary. Sales of this housing type increased 90% to 959 transactions, with an average price of $296,664, up 15% year over year.
The number of sales in the City of Toronto increased by 88% compared to the same period a year ago, reaching a total of 1,560 transactions. The average price meanwhile, climbed to $441,893, a 10% increase from mid-November last year.
Condominium sales in Toronto almost doubled to 674 trasactions, an increase of 97% from a year ago. They sold at an average price of $317,939, up 13% year-over-year.
Friday, November 13, 2009
The Broad Impact of the New Tax HST and the Cost of buying, owning and living in a Home
Starting July 1, 2010 Ontarians can expect to pay a harmonized sales tax (HST) rate of 13% on a long list of goods and services that were previously exempt from the 8% Provincial Sales Tax (PST). While the impact of the tax will be felt by all Ontarians, the province’s 3 million homeowners and the thousands who buy and sell a home every year will be hit particularly hard by this latest tax grab.
REALTORS® know how important the dream of homeownership is to Ontario families. Unfortunately, thanks to the forthcoming HST, that dream is going to become much more expensive. After July 1, 2010, every residential real estate transaction in Ontario will face a significant tax increase. Specifically, home buyers and sellers can expect to pay 8% more on legal fees, appraisals, real estate commissions, home inspection fees, moving costs and the provincial government’s forthcoming system of mandatory home energy audits. According to the Ontario Real Estate Association (OREA) Ontarians will pay, on average, an additional $1,449 in new taxes on their next residential real estate transaction.
The new tax will increase the cost of buying a home and the costs of owning and living in that home after it’s been purchased. Specifically, a HST will add hundreds, potentially thousands of dollars in additional tax on utility bills, such as gas, electricity and home heating fuel, on home renovation labour, the cost of lawn upkeep or landscaping and the cost of snow removal. Moreover, a HST will increase the cost of living with 8% more tax on gasoline, personal and professional services, meals under $4, dry cleaning, cab fares, magazine subscriptions, plane tickets, vitamins and cell phone charges.
In short, a HST will reduce the people of Ontario’s quality of life by taking more of their hard earned money. While the Government of Ontario plans to compensate homeowners by offering sales tax transition cheques and modest income tax reductions, these measures will in no way offset this new tax. A onetime payment of $1000 (for a family of four) and a modest $368 reduction in income taxes will do very little to offset the burden of an 8% tax increase on a litany of items in perpetuity. Certain basic needs, like groceries, prescription drugs, and children’s clothing, would be exempt from the new tax. Unfortunately, the provincial government is not proposing to provide a similar exemption for home purchasing costs. Having a roof over one’s head is about as basic as needs get, and the government should recognize this by ensuring that the costs associated with purchasing a home are exempt from the new tax.
REALTORS® know how important the dream of homeownership is to Ontario families. Unfortunately, thanks to the forthcoming HST, that dream is going to become much more expensive. After July 1, 2010, every residential real estate transaction in Ontario will face a significant tax increase. Specifically, home buyers and sellers can expect to pay 8% more on legal fees, appraisals, real estate commissions, home inspection fees, moving costs and the provincial government’s forthcoming system of mandatory home energy audits. According to the Ontario Real Estate Association (OREA) Ontarians will pay, on average, an additional $1,449 in new taxes on their next residential real estate transaction.
The new tax will increase the cost of buying a home and the costs of owning and living in that home after it’s been purchased. Specifically, a HST will add hundreds, potentially thousands of dollars in additional tax on utility bills, such as gas, electricity and home heating fuel, on home renovation labour, the cost of lawn upkeep or landscaping and the cost of snow removal. Moreover, a HST will increase the cost of living with 8% more tax on gasoline, personal and professional services, meals under $4, dry cleaning, cab fares, magazine subscriptions, plane tickets, vitamins and cell phone charges.
In short, a HST will reduce the people of Ontario’s quality of life by taking more of their hard earned money. While the Government of Ontario plans to compensate homeowners by offering sales tax transition cheques and modest income tax reductions, these measures will in no way offset this new tax. A onetime payment of $1000 (for a family of four) and a modest $368 reduction in income taxes will do very little to offset the burden of an 8% tax increase on a litany of items in perpetuity. Certain basic needs, like groceries, prescription drugs, and children’s clothing, would be exempt from the new tax. Unfortunately, the provincial government is not proposing to provide a similar exemption for home purchasing costs. Having a roof over one’s head is about as basic as needs get, and the government should recognize this by ensuring that the costs associated with purchasing a home are exempt from the new tax.
Wednesday, November 4, 2009
Toronto Real Estate Sales up 64% in October
Greater Toronto Realtors reported 8,476 Sales in October 2009, up 64% from October 2008. The average price for October transactions was $423,559 - up by 20% compared to the same month last year. "Strong Sales growth has occurred across many property classes - from price ranges that would attract first-time buyers to luxury properties selling for over 1 million dollars,"said TREB President. The highest rate of sales growth in October was experienced for properties selling for over $750,000. In contrast, luxury home sales declined at an above-average rate last year."
Year-to-date sales, at 74,721, were up 9% compared to the first ten months of 2008. Average price, at $392,264 was up by almost 3%. "After a short dip in the winter, the average home price in the GTA has rebounded because sales have been high relative to listings," according to a TREB's Manager. "Watch for listings to rebound in 2010 as home owner react to the strong sales and price growth experienced in the latter half of this year.
City of Toronto, 3,554 Sales, average price - $464,212
Rest of GTA - 4,922 Sales, average price - $394,205
Total GTA - 8,476 Sales, average price - $423,559
Year-to-date sales, at 74,721, were up 9% compared to the first ten months of 2008. Average price, at $392,264 was up by almost 3%. "After a short dip in the winter, the average home price in the GTA has rebounded because sales have been high relative to listings," according to a TREB's Manager. "Watch for listings to rebound in 2010 as home owner react to the strong sales and price growth experienced in the latter half of this year.
City of Toronto, 3,554 Sales, average price - $464,212
Rest of GTA - 4,922 Sales, average price - $394,205
Total GTA - 8,476 Sales, average price - $423,559
Thursday, October 22, 2009
If you plan to sell your Property, this is the time
Real Estate market in Toronto is hot and it seems, it's going to continue the same way for some more time. We expect to have a lot more listings next year (2010). The sales at mid October were already 34% up from the same period last year (2008) and the average price up in 17%. Therefore, if you plan to sell your property, this is the time to do it.
The Central Bank of Canada intends to keep the overnight rate (rate used by banks to lend and borrow money among themselves) at 0.25%, which means consumers have more room to negotiate and obtain better rates from financial institutions.
Another strong reason to sell, at least before summer of 2010, is that the Provincial Government of Ontario is going to introduce the 13% Harmonized Sales Tax (HST) which will replace the current 5% GST. The HST will apply to all goods and services (except, I think, diapers and baby food).
In a real estate transaction, the HST will apply to Lawyer's fee, Real Estate Commissions' Fees, Home Inspection's Fee and Moving expenses' fees, increasing thus the expenses associated to the sale of your property.
The Central Bank of Canada intends to keep the overnight rate (rate used by banks to lend and borrow money among themselves) at 0.25%, which means consumers have more room to negotiate and obtain better rates from financial institutions.
Another strong reason to sell, at least before summer of 2010, is that the Provincial Government of Ontario is going to introduce the 13% Harmonized Sales Tax (HST) which will replace the current 5% GST. The HST will apply to all goods and services (except, I think, diapers and baby food).
In a real estate transaction, the HST will apply to Lawyer's fee, Real Estate Commissions' Fees, Home Inspection's Fee and Moving expenses' fees, increasing thus the expenses associated to the sale of your property.
Friday, October 9, 2009
Good News for Labour Market - StatCan revealed
It's all over the media. Employment increased for the second consecutive month, up 31,000 in September, driven by large full-time gains.
The unemployment rate fell to 8.4%, the first monthly decline since the beginning of the labour market downturn in the fall of 2008.
September's full-time increase of 92,000, the larges since May 2006, was partially offset by part-time losses of 61,000. The increase in full-time work was mainly among youths and women aged 25 and over and in Ontario.
Construction, Manufacturing and Educational Services saw employment increases in September, while there were declines in Transportation and Warehousing.
Manufacturing employment increased by 26,000, in construction it rose again in September, +25,000 and employment in Educational Services saw a gain of 18,000.
In Transportation and Warehousing jobs were lost by 21,000 in September, mostly in Truck Transportation in Ontario and Quebec.
The unemployment rate fell to 8.4%, the first monthly decline since the beginning of the labour market downturn in the fall of 2008.
September's full-time increase of 92,000, the larges since May 2006, was partially offset by part-time losses of 61,000. The increase in full-time work was mainly among youths and women aged 25 and over and in Ontario.
Construction, Manufacturing and Educational Services saw employment increases in September, while there were declines in Transportation and Warehousing.
Manufacturing employment increased by 26,000, in construction it rose again in September, +25,000 and employment in Educational Services saw a gain of 18,000.
In Transportation and Warehousing jobs were lost by 21,000 in September, mostly in Truck Transportation in Ontario and Quebec.
Wednesday, October 7, 2009
... and the Housing Market Stays the same: Hot
The Greater Toronto Realtors reported 8,196 sales in September 2009, up 28% from September 2008.
The average price for September transactions was $406,877 - up by 10% compared to the same month last year.
We've experienced an increasing rate of existing home price growth in the GTA as sales have continued to outpace 2008 results.
Consumers have remained confident in ownership housing as a long-term investment. Year-to-date sales, at 66, 437 were up 4.5% compared to the first 9 months of 2008. Average price, at $388,417 was up by almost 1.5%.
Existing home sales will finish strong this year, pushing through the 80,000 mark and moving in line with some of the best years on record under the current TREB (Toronto Real Estate Board) market area.
The average price for September transactions was $406,877 - up by 10% compared to the same month last year.
We've experienced an increasing rate of existing home price growth in the GTA as sales have continued to outpace 2008 results.
Consumers have remained confident in ownership housing as a long-term investment. Year-to-date sales, at 66, 437 were up 4.5% compared to the first 9 months of 2008. Average price, at $388,417 was up by almost 1.5%.
Existing home sales will finish strong this year, pushing through the 80,000 mark and moving in line with some of the best years on record under the current TREB (Toronto Real Estate Board) market area.
Friday, September 4, 2009
Real Estate August Numbers show strong Market
In August 2009, greater Toronto Realtors reported 8,035 sales, up 27% from August 2008. The average price for August transactions was $387,921 - up by 6% compared to the same month last year. The increase in demand for existing homes has been widespread across different housing types and price ranges. This suggests many categories of home buyers have chosen to make a long-term investment in housing, from first-time buyers to move-up buyers or buyers who are seeking a life-style change.
Year-to-date sales, at 58,421 were up 2% compared to the first eight months of 2008. Home sales have helped other sectors of the economy through homes buyers' spending on things like financial and legal services, moving, renovations and home furnishings.
Year-to-date sales, at 58,421 were up 2% compared to the first eight months of 2008. Home sales have helped other sectors of the economy through homes buyers' spending on things like financial and legal services, moving, renovations and home furnishings.
Saturday, August 8, 2009
Toronto Real Estate Market Continued Strong in July
Although the unemployment figures are not improving, almost 45,000 jobs were lost in July, the Greater Toronto Realtors reported 9,967 Sales during the month of July 2009. Up 28% from July 2008.
The average price for the July Transactions was $395,414, up by six per cent compared to the same month last year.
The Real Estate Sector has been one of the sectors making a positive contribution to economic growth in GTA (Great Toronto Area).
Year-to-date Sales at 50,632 are down 1.2 per cent compared to the firs 7 months of 2008. Average price at $385,808 is down by less than one-half of one per cent.
The average price for the July Transactions was $395,414, up by six per cent compared to the same month last year.
The Real Estate Sector has been one of the sectors making a positive contribution to economic growth in GTA (Great Toronto Area).
Year-to-date Sales at 50,632 are down 1.2 per cent compared to the firs 7 months of 2008. Average price at $385,808 is down by less than one-half of one per cent.
Friday, July 24, 2009
Canadian Health Care System gives us piece of Mind
The reform of the health care system in the United States has been intensely discussed and debated lately and many have judged the Canadian health care system in a negative way due to their political agendas.
I've been to Toronto for almost 12 years and found that Canada is a more "just, humanized" Capitalist Society. One of the reasons is exactly our health care system, which has absolutely nothing to do with Socialism. I lived (and studied) in Soviet Union (1987-1993), today's Russia, and I know what socialism health care system looks like.
It's obvious that Canadian system is not a perfect system (and what is perfect in this world?), we know it needs improvements but it's good enough, it works and even the most vulnerable people are covered.
Canadian health care system is actually one of those things that attracts and keeps people in this Country. I can everyday go to my business knowing that if anything happens (to me or my family), as it has, help is there anytime, and I don't have to necessarily be rich. It gives us Peace of mind.
I am a diabetic and have understood long ago that the taxes we pay the government are actually our life insurance in case "shit" happens. I would not leave this country for any other in this world.
Unfortunately not everyone understands that until they get hit. Just like a friend of mine recently said, after witnessing and appreciating the care and treatment provided to his wife that was almost victimized by cancer. He'd probably lose his house, cars and everything he has and worked for all his life, if he would be in the USA.
So, from my point of view, americans should support the president's proposal to reform health care system because it'll benefit everyone. Remember that sick people cannot work and consequently cannot be productive.
I've been to Toronto for almost 12 years and found that Canada is a more "just, humanized" Capitalist Society. One of the reasons is exactly our health care system, which has absolutely nothing to do with Socialism. I lived (and studied) in Soviet Union (1987-1993), today's Russia, and I know what socialism health care system looks like.
It's obvious that Canadian system is not a perfect system (and what is perfect in this world?), we know it needs improvements but it's good enough, it works and even the most vulnerable people are covered.
Canadian health care system is actually one of those things that attracts and keeps people in this Country. I can everyday go to my business knowing that if anything happens (to me or my family), as it has, help is there anytime, and I don't have to necessarily be rich. It gives us Peace of mind.
I am a diabetic and have understood long ago that the taxes we pay the government are actually our life insurance in case "shit" happens. I would not leave this country for any other in this world.
Unfortunately not everyone understands that until they get hit. Just like a friend of mine recently said, after witnessing and appreciating the care and treatment provided to his wife that was almost victimized by cancer. He'd probably lose his house, cars and everything he has and worked for all his life, if he would be in the USA.
So, from my point of view, americans should support the president's proposal to reform health care system because it'll benefit everyone. Remember that sick people cannot work and consequently cannot be productive.
Wednesday, July 15, 2009
Investment Property: Buy only When the price is below the market value - Warren Buffet
Not long ago I read a book about the billionaire Warren Buffet and he says in it that you buy a property, only, when the selling price is below the real market value. And he went on saying that we have to be pacient and wait for the right opportunity, and always live within our means.
So, the Real Estate selling prices in Toronto (Canada) are not falling as they are in the USA, but with such low interest rates being presently offered by the lenders in general, my wife and I, too, had to take advantage of the great opportunity that popped up in the market.
We bought an Investment property located south of Rogers, West of Dufferin that was being sold by a Bank under Power of Sale. It's a property with a Detached Home with 3 units (3 kitchens, 3 washrooms) with 3 separate entrances, an independent laundry and 2 possible parkings. A few renovations are needed but we are really taking care of it (wheeping tile, water service, few new appliances, painting, new faucets, new doors...) in order to preserve the great value.
Monday, July 6, 2009
The Best June on Record for GTA Resale Housing Market
According to Toronto Real Estate Board (TREB), in June 2009, Great Toronto Realtors reported a record 10,955 sales, up 27 per cent from June 2008. The seasonally adjusted annual rate of sales in June was 100,700.
The record result in une is testament to the fundamentally sound housing market in the GTA. An increasing number of households have been confident in purchasing a home in the region's affordable and diverse resale housing market.
The average price for June transactions was $403,972 - up by two percent compared to the same month last year.
The re-emergence of seller's market condition has exerted upward pressure on home prices. Look for sales to remain high relative to listings in the second half of the year. This will keep home prices growing.
The record result in une is testament to the fundamentally sound housing market in the GTA. An increasing number of households have been confident in purchasing a home in the region's affordable and diverse resale housing market.
The average price for June transactions was $403,972 - up by two percent compared to the same month last year.
The re-emergence of seller's market condition has exerted upward pressure on home prices. Look for sales to remain high relative to listings in the second half of the year. This will keep home prices growing.
Wednesday, June 3, 2009
May Resale Housing Sales Higher Than Last Year
Greater Toronto Realtors reported 9,589 sales during the month of May. Up almost two percent from May 2008 - the first annual increase since December 2007.
The Resale housing market in the GTA has remained resilient in the face of challenging times globally. Many home buyers have taken advantage of extremely low Mortgage rates.
The Average Price for May Transactions was $395,609 - down less than one percent compared to the same month last year.
The average resale home price has moved in line with last year's level because of tighter market conditions experienced this Spring. Home Sales have increased strongly relative to new listings, bolstering home prices.
The Average Price in the area of W01 was $426,141, in W02 - $466,642, W03 - $288,564, W04 - $305,786 and in W05 - $281,441.
The Resale housing market in the GTA has remained resilient in the face of challenging times globally. Many home buyers have taken advantage of extremely low Mortgage rates.
The Average Price for May Transactions was $395,609 - down less than one percent compared to the same month last year.
The average resale home price has moved in line with last year's level because of tighter market conditions experienced this Spring. Home Sales have increased strongly relative to new listings, bolstering home prices.
The Average Price in the area of W01 was $426,141, in W02 - $466,642, W03 - $288,564, W04 - $305,786 and in W05 - $281,441.
Saturday, May 23, 2009
Harmonized Sales Tax - The Impact in Real Estate Market
When it seems Toronto's real estate market begins to recover, realtors and home builders are worried Ontario's new harmonized sales tax could send sales plummeting again.
The number of home sales in the GTA in the first half of May was up 3% over the same period last year, after a series of year-over-year drops. The average price was $399,811, about the same as last May.
"We're out of the trenches for sure," said a senior manager of market analysis.
But the harmonized sales tax looms on the housing horizon. The tax will come into effect in July, 2010, combining the 5% GST and 8% PST into one 13% tax. The HST will apply to new homes and to all home closing costs, creating thousands of dollars more in taxes.
Currently, new homes are exempt from PST. Under the HST, new homes worth less than $400,000 will qualify for a 6% tax rebate, but new homes worth more than $500,000 will be subject to an additional 8% tax. This would mean an additional $30,000 on a $500,000 home.
The HST will hit new home buyers in Toronto harder because real estate prices are higher here, said Ontario Homebuilders Association president Frank Giannone.
"A $500,000 new home in Toronto doesn't get you much," said Mr. Giannone, who is also president of the Fram Building Group.
Mr. Giannone said the HST is a good idea, but current plans mean the entire purchase price is taxed once the $400,000 threshold is reached, and that could discourage middle-income earners from buying a new home.
"If you don't have your own place yet, or you have your own place and you're planning on moving up, you've hit a wall," Mr. Giannone said.
Only 7% of home buyers will be affected by the new tax, said Alicia Johnston, spokeswoman for the Ontario Ministry of Finance.
The HST may only apply to new homes, but closing costs on all homes will be hit with the 15% tax.
This will add approximately $2,000 extra in taxes per sale for costs such as home inspectors, lawyers and real estate commissions, said Toronto Real Estate Board chief government and media relations officer Von Palmer.
The additional $2,000 could hinder buyers who already struggle to save enough for a down payment, Mr. Palmer said, adding new taxes are not what the industry needs during a recession. "There is never a good time for a new tax, but this is bad," Mr. Palmer said.
He suggested the closing costs be exempt from the HST, but the government isn't considering that option.
"We can't exempt everything, otherwise it wouldn't be a harmonized sales tax," Ms. Johnston said.
Not everyone in the Ontario housing business thinks the HST means gloom and doom for the housing industry in the GTA.
"The HST is one factor that will impact sales next year, but it is only one of many factors," said Ted Tsiakopoulos, regional economist for the Canadian Mortgage and Housing Corporation.The Canadian Mortgage and Housing Corporation predicts sales in Ontario will pick up next year by 4.1% for resale homes and 1.9% for home starts
The number of home sales in the GTA in the first half of May was up 3% over the same period last year, after a series of year-over-year drops. The average price was $399,811, about the same as last May.
"We're out of the trenches for sure," said a senior manager of market analysis.
But the harmonized sales tax looms on the housing horizon. The tax will come into effect in July, 2010, combining the 5% GST and 8% PST into one 13% tax. The HST will apply to new homes and to all home closing costs, creating thousands of dollars more in taxes.
Currently, new homes are exempt from PST. Under the HST, new homes worth less than $400,000 will qualify for a 6% tax rebate, but new homes worth more than $500,000 will be subject to an additional 8% tax. This would mean an additional $30,000 on a $500,000 home.
The HST will hit new home buyers in Toronto harder because real estate prices are higher here, said Ontario Homebuilders Association president Frank Giannone.
"A $500,000 new home in Toronto doesn't get you much," said Mr. Giannone, who is also president of the Fram Building Group.
Mr. Giannone said the HST is a good idea, but current plans mean the entire purchase price is taxed once the $400,000 threshold is reached, and that could discourage middle-income earners from buying a new home.
"If you don't have your own place yet, or you have your own place and you're planning on moving up, you've hit a wall," Mr. Giannone said.
Only 7% of home buyers will be affected by the new tax, said Alicia Johnston, spokeswoman for the Ontario Ministry of Finance.
The HST may only apply to new homes, but closing costs on all homes will be hit with the 15% tax.
This will add approximately $2,000 extra in taxes per sale for costs such as home inspectors, lawyers and real estate commissions, said Toronto Real Estate Board chief government and media relations officer Von Palmer.
The additional $2,000 could hinder buyers who already struggle to save enough for a down payment, Mr. Palmer said, adding new taxes are not what the industry needs during a recession. "There is never a good time for a new tax, but this is bad," Mr. Palmer said.
He suggested the closing costs be exempt from the HST, but the government isn't considering that option.
"We can't exempt everything, otherwise it wouldn't be a harmonized sales tax," Ms. Johnston said.
Not everyone in the Ontario housing business thinks the HST means gloom and doom for the housing industry in the GTA.
"The HST is one factor that will impact sales next year, but it is only one of many factors," said Ted Tsiakopoulos, regional economist for the Canadian Mortgage and Housing Corporation.The Canadian Mortgage and Housing Corporation predicts sales in Ontario will pick up next year by 4.1% for resale homes and 1.9% for home starts
Wednesday, May 13, 2009
Toronto Condo Market Update
Condo Sales in Toronto are Down.
Despite a record number of construction cranes gracing the horizon, Toronto’s once thriving new condo market hit a dismal sales low in the first quarter of 2009.
The number of sales recorded during the first quarter dipped to 917 units – the lowest level since 1996 and a far cry from the high of nearly 7,000 units sold in the second quarter of 2007, the peak.
It’s a decline of 73% over the performance of last year, of 2008. The market really came to a halt in October, November and we haven’t picked up momentum through the first quarter.At the same time, ground has been broken on some 36,255 units now under construction in the region – a market high point. These are building projects that came to market in 2006 and 2007.
Despite a record number of construction cranes gracing the horizon, Toronto’s once thriving new condo market hit a dismal sales low in the first quarter of 2009.
The number of sales recorded during the first quarter dipped to 917 units – the lowest level since 1996 and a far cry from the high of nearly 7,000 units sold in the second quarter of 2007, the peak.
It’s a decline of 73% over the performance of last year, of 2008. The market really came to a halt in October, November and we haven’t picked up momentum through the first quarter.At the same time, ground has been broken on some 36,255 units now under construction in the region – a market high point. These are building projects that came to market in 2006 and 2007.
Wednesday, March 25, 2009
First Thing, Get Pre-Approved
Very often, potential home buyers have approached me, asking me to show them properties without being initially pre-approved by a Mortgage Broker. This is incorrect.
The first thing anyone, who plans or thinks to buy a property (home or Condominium) must do, is to get a written pre-approval from a Real Estate Mortgage Broker (either independent or who works for a Bank). This comes before location, finding a home or making an offer.
There is nothing complicated about it and it doesn't take too long. You just have to provide the Mortgage Broker with your (and/or your spouse's) Social Insurance Number, Date of Birth and a few of the most recent Pay-Stubs.
The reason why this must be done in the first place, is that you, as a potential buyer must know exactly how much you can buy for and at what interest rate, before you go out there viewing properties. And that is important because you'll be able to know what your limit is, and on other hand, you'll never end up frustrated after knowing that you can't buy the property you found because you either can't afford it or an irregularity was found in your credit history, or anything else.
The decision to buy a house, is usually an emotional one. Therefore, is very important that you, as a buyer, have the numbers checked out before making the decision. Remember you're not buying a T-shirt.
You should know that beside the mortgage (good debt) you have to pay back, you also have other immediate expenses associated with the buying of a property: You'll pay Land Transfer Tax, Home Inspection, Lawyer's fee, Fire Insurance, Moving expenses. There are some other, smaller expenses related to tranferring or opening accounts for phone line(s), Internet Service, Hydro, Gas (Enbridge or Direct Energy), Water and Sewage (Water Bill).
The first thing anyone, who plans or thinks to buy a property (home or Condominium) must do, is to get a written pre-approval from a Real Estate Mortgage Broker (either independent or who works for a Bank). This comes before location, finding a home or making an offer.
There is nothing complicated about it and it doesn't take too long. You just have to provide the Mortgage Broker with your (and/or your spouse's) Social Insurance Number, Date of Birth and a few of the most recent Pay-Stubs.
The reason why this must be done in the first place, is that you, as a potential buyer must know exactly how much you can buy for and at what interest rate, before you go out there viewing properties. And that is important because you'll be able to know what your limit is, and on other hand, you'll never end up frustrated after knowing that you can't buy the property you found because you either can't afford it or an irregularity was found in your credit history, or anything else.
The decision to buy a house, is usually an emotional one. Therefore, is very important that you, as a buyer, have the numbers checked out before making the decision. Remember you're not buying a T-shirt.
You should know that beside the mortgage (good debt) you have to pay back, you also have other immediate expenses associated with the buying of a property: You'll pay Land Transfer Tax, Home Inspection, Lawyer's fee, Fire Insurance, Moving expenses. There are some other, smaller expenses related to tranferring or opening accounts for phone line(s), Internet Service, Hydro, Gas (Enbridge or Direct Energy), Water and Sewage (Water Bill).
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