Durham Region Real Estate Blog

The new harmonized tax - which adds an extra eight per cent PST to plenty of items previously exempt – takes effect on July 1, 2010.  Under the new tax regimen, selected items traditionally exempte4d from the 8 per cent PST will continue to only be taxed at the 5 per cent GST rate.  This includes buyers of new homes under $400,000.   Those buying a new home from $400,000 to $500,000 can claim a proportional tax credit and for homes priced over $500,000, well, you’re out of luck.   Those of you buying a resale home will not have to pay tax on the purchase price of the home.   But plenty of other items will be taxed at the new rate.  Commissions, lawyer fees, bank fees, appraisals and home inspections will all cost you more money.  To offset the fact that taxes will rise on nearly everything, families earning $160,000 or less annually will receive up to a $1,000 cheque from the government. 

There have been media reports about Liberal back bencher MPPs pushing back against their own premier on this.  Some think they can have the decision reversed before the July 1, 2010 inception date.

Not all people oppose the tax though.  Other provinces – Quebec, New Brunswick, Nova Scotia and Newfoundland – already have the combined tax.  Businesses welcome the new tax as it is expected to save corporate Ontario $500 million a year in paperwork costs alone!

So where do you stand on this issue?  If you agree with the new tax, great! Don’t do anything and the tax will come into effect on July 1, 2010.  If you don’t agree, join others in trying to have the tax reversed before it starts.  Either way, make your opinion known.  Contact your MPP.  If you oppose, you can check out my previous post on this subject and use the automatic form provided by OREA to submit your thoughts to your MPP.

The Durham Region Association of REALTORS® (DRAR) reported 378 transactions in the first half of April, down 17% from the 458 reported mid-month of April ‘08’.  Sales of single family homes in the Region rose to 694 in March ‘09’ up from the 507 reported in February ‘09’. Despite the economy, if transactions continue to grow at the same rate through to the end of April we will see the upward trend of sales continue in ‘09’ and well into the spring market. 

The real interesting news is that even through we continue to hear of the doom and gloom in the news, the average selling price is actually up 1% ($273,480) from the $270,795 reported mid April ‘08’.

Based on these numbers, we are not projecting a drop in the average selling price of a single family home this spring; which is good news for sellers. Favourable interest rates have gotten buyers off the sidelines and into the market, making April a positive month for both buyers and sellers alike.  

Oshawa real estate sure can get the short end of the stick.  Known as “the Shwa”, people can be quick to put the city down.  But there are some great places to live in Oshawa and you can get fantastic value for your money.   What is referred to as “The New Oshawa”, is the area located in the most north-eastern area of Oshawa, Located north of Taunton Road and east of Harmony.  The new homes built here have been of good quality, full of beautifully appointed homes in a myriad of sizes and styles.  Prices here have been fairing well and sales have been brisk.  The only thing to watch out for is the tax rate.  There are homes with taxes over the $7,000 mark in this area, so you’ll definitely want to ask what the rate is if you’re thinking about making a purchase there.  

Then there is  quaint little area, tucked south of King Street, north of Olive Avenue and east of Harmony.  Here there is plenty of green space, great schools and parklands.  The homes may be 30 or so years old, but the majority of them have been well maintained and you’ll notice some great landscaping.  Here the lots tend to be a little wider and deeper than in the newer subdivisions.  The neighbours are friendly and the streets are quiet. 

So if you’re looking at buying a home, don’t pass over Oshawa.  We may just be able to show you a few homes that will pique your interest!

So have you heard the latest? The Government has introduced Bill 150, the Green Energy Act. Part of this act would make a home energy audit mandatory for all home sales. These audits can cost home sellers thousands of dollars in lost home equity. Those with less than ideal energy audit ratings will face pressure from home buyers to either spend thousands of dollars to improve the energy rating of their home or lower the sale price to allow the buyer to make the recommended changes.

You can do something to stop this. Join the Realtors in Ontario in urging the provincial government to amend Bill 150, to make home energy audits voluntary. Your email will reinforce the message OREA will be sending to the Government of Ontario when we appear before the Standing Committee on General Government on April 22, 2009.

Pleaes tell you MPP that the government should be helping Ontarians achieve their dream of homeownership by amending Bill 150 to make home energy audits voluntary.

Send an e-mail to your MPP on this issue now. Go to http://www.orea.com/consumermhea to send your letter now!

Should you receive a response from your MPP, please forward a copy to governmentrelations@orea.com or via fax at 416-445-2644 to the attention of the Government Relation Department.

Have your say in how the government is controlling the dollars coming out of your pocket!

So I know that the media is inundating you with news about the market, or lack there of, but I need to put in my two cents worth.

In the Durham Region there were 694 sales in March, 2009. This is down from the 824 sales in March of 2008, but still up respectably from the 507 houses sold in February, 2009. Prices for the month stayed on par with February, 2009, at an average of $263,970. This average is down 4.3% over March, 2008.

Buyers are definitely taking advantage of the increased affordability the current market has to offer. And with the HST set to come into effect on July 1, 2010, buyers are smart to take advantage now. Of course, the interest rates on mortgages is definitely a bonus too. I just saw an update for a 5 year, fixed plan for 3.95%!

So the sun is shining today and it looks like we are seeing some shining stars in the real estate market too!

The proposed Home Renovation Tax Credit (HRTC) will provide a temporary 15% income tax credit on eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010. The credit may be claimed for the 2009 taxation year on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, and will provide up to $1,350 in tax relief.

For more information on all the home ownership and housing related stimulus in Budget 2009, go to http:///www.budget.gc.ca/2009/plan/bpa5a-eng.asp#Personal or to the Canada Revenue Agency Web site at www.cra-arc.gc.ca and search for “Home Buyers Plan.”

Around the middle of December, 2008 it became a little easier for first time home buyers in Ontario to get into the homeownership market.  Effective December 17, 2008,  the Ontario government is giving all first-time home buyers a break on land transfer tax by expanding the Land Transfer Tax Refund Program to include purchases of resale homes.

Ontario Finance Minister Dwight Duncan announced that first-time buyers of resale homes, as well as newly constructed homes, would be eligible for a refund from the provincial government of up to $2,000 of the Land Transfer Tax paid.

The expanded Land Transfer Tax Refund Program for First-time Home buyers is part of a package of new tax initiatives  that are expected to provide $1.4 billion in provincial tax relief for business and people over three years.

“The government is making strategic investments in people, communities and infrastructure to strengthen Ontario’s economic advantage and help manufacturers and other sectors challenged by current economic conditions” said the press release issued yesterday.

If you are a first-time home buyer in Bowmanville, Courtice, Oshawa, Whitby, Port Perry or Uxbridge,  call Bernice or Blair to guide you through the process.  

Note, I’ve been getting inquiries requesting more details about this rebate so here are the practicalities: