HST Its Impact on Hamilton-Burlington area Home Owners in 2010

How the Ontario HST Will Impact You in 2010

The Ontario Government recently enacted legislation which will implement the much-dreaded HST Tax. This new tax will take effect on July 1, 2010.
The HST tax will effectively combine the Provincial Sales Tax of 8% percent with the Federal GST Tax of 5% percent, to create a new "harmonized" total tax of 13% percent. This new tax will be applicable to many real estate services which hitherto only had one or the other tax applied.

The HST will result in a 13% tax on new home construction, but my post today will concern those ancillary costs pertaining to the buying and selling of resale residential real estate properties in Ontario...

First, the good news....there is no HST tax payable on the sale of a resale home (residential). So the single largest dollar amount exchanged is not taxable under HST.If you're considering buying an older home, you should know about the Ontario Home Energy Savings Program and Home Energy Retrofit Program which offers rebates for certain home improvements.

However, under the harmonized sales tax (HST), home buyers and sellers will have to pay extra tax on a range of services associated with the real estate transaction: services such as legal fees, moving costs, real estate commissions and home inspection fees. Currently, consumers only pay the 5% Goods and Services Tax (GST) on these services.

In a nutshell, after July 1, 2010, if you are a seller, there will be a 13% percent tax payable on the real estate commission you pay - currently there is only the 5% percent GST payable on this fee. Your lawyer's fee will also be subject to the 13% percent HST, as will the cost of a Condominium Status Certificate.

HST New Home Rebate

The Federal government offers a GST/HST New Housing Rebate program which provides a rebate on part of the GST or the federal part of the HST paid on the construction or purchase of most newly constructed or substantially renovated houses used as a primary place of residence.

New Residential Properties

New homes sold for more than $400,000 will generally be subject to an increase in tax under the harmonized sales tax, with homes sold for more than $500,000 being subject to a significant increase in tax. Under the HST regime, the cost to build a new home will decrease, since builders will now be able to claim credits for all of the sales tax they pay on their inputs, however, the sale of these new homes will now be subject to an additional 8% tax. Ontario has proposed a rebate of 75% of the Ontario portion of the HST (i.e. 6%) for new homes sold for under $400,000.

This, combined with the decrease in the building costs, which Ontario assumes will be passed on to purchasers, means that new homes sold for under $400,000 should be effectively taxed at the same rate under the HST as they were under the RST regime. However, the Ontario rebate begins to be phased out at $400,000, and disappears entirely at $500,000. Thus, assuming again that the builder passes the 2% savings on to the purchaser, under the new regime new homes sold for more than $500,000 will effectively be subject to an additional tax of almost 6%.

Federal statistics from 2008 indicate that roughly 23% of new homes in Ontario sold for between $400,000 and $500,000, while roughly another 23% sold for over $500,000.

EXAMPLE 1: NEW HOME - $400,000

A new home with a price tag of $400,000 will benefit from an HST rebate that should operate in the same way as the current GST new housing rebate. If, as the government predicts, the builder passes on the 2% savings to the purchaser, the $400,000 home will sell for $392,000. HST will be payable on the new home at the rate of 13%, for a total of $50,960 of HST. The Ontario component of the HST on the home will be $31,360.

Under the proposed rebate program, the purchaser will receive a rebate of $23,520
(75% of $31,360) for the provincial component, and a GST new housing rebate of $3,654. Thus, the purchase price of the home which previously would have sold for $416,850 ($400,000 plus $20,000 of GST minus a GST rebate of $3,150) will be $415,786
($392,000 plus $50,960 of HST minus $23,520 of Ontario rebate, minus $3,654 for the GST new housing rebate). If we assume that builders will pass all of their cost savings to purchasers, a $400,000 home will actually cost slightly less under the new regime.

If you are a buyer, any Home Inspection you pay for will be subject to the 13% percent HST. And so will the cost of movers hired. In addition, the cost of the CMHC premium for "high-ratio" mortgages has traditionally been taxable for PST - this amount will now be taxable for the full 13% percent HST.

So one can see that, with the introduction of the HST, whether you are buying or selling a Resale Home in Ontario, costs will be going up.

A press release from the Ontario Real Estate Association earlier this year summarized some of these changes which will take place - the example that they used was for a resale house priced at $360,000, and it was determined that the HST would add over two thousand dollars in new taxes to closing costs.

Please note, these taxes are in addition to the Land Transfer Taxes which exist for both the Province and the City of Toronto. OREA calculated that, in total, the HST would add $313 million annually in new taxes to resale home transactions.

CURRENT TAXES PAID, VERSUS THE NEW COMBINED HST TAX PAYABLE,
oN A HYPOTHETICAL $360,000 REAL ESTATE TRANSACTION:

Current Tax | New Tax | Total HST Payable

Mortgage Insurance Premiums(1) $752.40 | $470.25(2) | $1222.65
Legal Costs $50.00 | $80.00 | $130.00
Real Estate Commission(3) $900.00 | $1,440.00 | $2,340.00
Home Inpection $20.00 | $32.00 | $52.00


For More Real Estate Real Estate Issues:

Contact Jimmy Singh, B.E.;S.R.E.S.; A.H.S.
Sales Rep. at Remax Escarpment Realty Inc. Brokerage
905-575-5478

www.hamiltonhomesinfo.ca

Consumer confidence ends on a stronger footing- CREA

Canadian Real Estate Association says:Consumer confidence ends on a stronger footing.

National consumer confidence ended the year 2009 on a stronger footing compared to pre-recession levels, despite having edged down slightly the fourth quarter compared to the third quarter. According to the Conference Board of Canada’s index of consumer confidence, confidence eased slightly in the fourth quarter for the first time in three quarterly periods. The decrease in confidence reflects weakening sentiment about making major purchases.

The balance of sentiment about making major purchases, such as a home or a car, dipped slightly into negative territory in the fourth quarter. It had turned positive in the third quarter for the first time since the first quarter of 2008.

A negative balance of sentiment means more survey respondents said it was a bad time to buy a big-ticket item, such as a home or car, than said it was a good time to do so. This indicator is an important factor underlying the housing market.

The balance of sentiment about job growth prospects continued improving in the fourth quarter of 2008, staying positive for the second consecutive quarter. More survey respondents expect employment to pick up over the next six months, and fewer expect more layoffs.

The balance of sentiment about households’ budgetary outlook softened marginally in the fourth quarter, but remains upbeat. A positive balance of opinion means more households said they expect their household budget to improve in the next six months than said they think it will worsen.


Ontario

Consumer confidence in Ontario dipped slightly in the fourth quarter of 2009 after having risen in each of the three previous quarters, according to the Conference Board of Canada’s index of consumer confidence. The slight decline in confidence reflects weakened sentiment about households’ budgetary outlooks and about making major purchases.

The balance of sentiment about making major purchases, such as a home or a car, turned negative in the fourth quarter. In the third quarter, it had turned positive for the first time since the fourth quarter of 2007.

A negative balance of opinion means more households said it was a bad time to buy a big-ticket item, such as a home or car, than said it was a good time to do so. This is an important factor underlying the housing market.

The balance of sentiment about job growth prospects improved compared to the previous quarter, turning positive for the first time since the second quarter of 2006.

The balance of sentiment about the outlook for household budgets stayed positive for the third consecutive quarter in the fourth quarter of 2009, despite having softened slightly.


British Columbia

Consumer confidence in British Columbia eased slightly in the fourth quarter of 2009, according to the Conference Board of Canada’s index of consumer confidence. Moderating confidence in the fourth quarter reflects softening sentiment about households’ budgetary outlooks, job prospects, and major purchases.

The balance of sentiment about making a major purchase, such as a home or a car, fell sharply and again turned negative in the fourth quarter. It had turned positive in the third quarter for the first time in two years.

A negative balance of opinion means more survey respondents said that it was a bad time to buy a big-ticket item, such as a home or car, than said it was a good time to do so. This indicator is an important factor underlying the housing market.

Sentiment about job growth prospects deteriorated in the fourth quarter. Although the balance of sentiment about near term job growth remained negative for the seventh consecutive quarter, it remained significantly less negative compared to where it stood at the height of the economic recession.

The balance of sentiment about households’ budgetary outlook stayed upbeat for the third consecutive quarter.

Prairie region

Consumer sentiment in the Prairie region improved for the third consecutive quarter in the fourth quarter of 2009, returning to the pre-recession level recorded in the second quarter of 2008.

Sentiment about making major purchases, such as a home or a car, improved for the fourth consecutive quarter. The balance of sentiment about making major purchases has stayed positive for two consecutive quarters, returning to levels on par with the third quarter of 2007.

A positive balance of sentiment means more survey respondents said it was a good time to buy a big-ticket item, such as a home or car, than said it was a bad time to do so. This indicator is an important factor underlying the housing market.

Sentiment about job growth prospects continued improving, building on significant increases recorded in the previous two quarters. The balance of opinion about job growth has stayed positive for three consecutive quarters, and is also back on par with pre-recession levels.

The balance of sentiment about the outlook for household budgets edged down only marginally in the fourth quarter on 2009 compared to the previous quarter.

Quebec

Consumer confidence in Quebec eased in the fourth quarter of 2009 but remains well above levels recorded at the height of the economic recession, according to the Conference Board of Canada’s index of consumer confidence. The decrease in confidence reflects weaker sentiment about household budgets and about making major purchases.

Despite having softened compared to the previous quarter, the balance of sentiment about making major purchases, such as a home or a car, remained positive in the fourth quarter. This represents the third consecutive quarter in which the balance of sentiment about making major purchases stayed positive.

A positive balance of opinion means more households said it was a good time to buy a big-ticket item, such as a home or car, than said it was a bad time to do so. This indicator is an important factor underlying the housing market.

The balance of sentiment about job growth prospects turned positive for the first time since the beginning of 2008.

The balance of sentiment about the outlook for household budgets for the next six months eased in the fourth quarter, but nevertheless remained positive.

Atlantic region

Consumer sentiment improved significantly in the fourth quarter of 2009, continuing its rise above pre-recession levels according to the Conference Board of Canada’s index of consumer confidence for the region. This marked the fourth consecutive increase in confidence.

Sentiment about making major purchases, such as a home or a car, held steady. The balance of sentiment about big-ticket purchases remained positive for the second consecutive quarter.

A positive balance of sentiment means more survey respondents said it was a good time to buy a big-ticket item, such as a home or car, than said it was a bad time to do so. This indicator is an important factor underlying the housing market.

After improving for a fourth consecutive quarter, the balance of sentiment about job growth became positive in the fourth quarter of 2009. This is its first positive reading since the second quarter of 2008.

The balance of sentiment about the outlook for household budgets over the next six months also improved in the fourth quarter. This marks the fourth consecutive quarter in which the balance of sentiment about the outlook for household budgets stayed upbeat.

Source: The Canadian Real Estate Association

2010 is shaping up to be a great year, from RBC

New beginnings

Turning the page on 2009 will be done with great relief almost everywhere in Canada. The past year has been, by far, the toughest since the early 1990s recession and, in some cases, the early 1980s recession. Hardship was evident from coast to coast, even in parts of the country, such as Alberta, that were previously considered almost bullet-proof.

Perhaps more importantly, however, will be the full force of fiscal and monetary stimulus kicking in. Nearly all governments at the federal, provincial and municipal levels have initiated substantial infrastructure spending programs and these will be in high gear during the year ahead.

In most cases, although not all, 2010 will be the peak of stimulus spending.

The easing of monetary policy is already having a visible impact – most notably in housing resale markets across the country – and should continue to do so despite our expectation that the Bank of Canada will gradually take its feet off the gas pedal starting mid-year. Extremely low mortgage rates have been key to the spectacular rebound in housing resale activity in every province since early 2009.

The precipitous decline in activity that started late in 2008 plunged a number of provinces – including Ontario, Alberta and British Columbia – into a deep slump through the better part of the year, which reverberated loudly in regional job markets.

The ranks of the unemployed swelled and unemployment rates surged broadly, reaching the highest levels since the 1990s in Ontario and Alberta.

While many challenges will remain, 2010 promises a widespread turnaround in economic performance, albeit a modest one at first. A more sanguine global context will sharply contrast with the meltdown on the world stage that took place in 2008 and early 2009. With the financial crisis behind us and the U.S. economy on the mend, factors “external” to the provincial economies are expected to contribute positively to growth again.

In turn, this housing resurgence should be seen as evidence that consumers are feeling more upbeat even in areas of the country such as British Columbia, Ontario and Alberta where the recession caused substantial damage.

The price tag for the fiscal stimulus is enormous – huge budget deficits.

Collectively, the provinces are projecting shortfalls totaling $38.2 billion in the 2009-10 fiscal year and at least $30.2 billion in 2010-11 (with two provinces not providing estimates), both records in terms of value. However, relative to GDP, the deficits will be modestly milder than the peaks recorded in the early 1990s.

While running up huge budget shortfalls might cause some discomfort, the alternative was even less attractive given the severity of the economic downturn. Nonetheless, returning to balance during the medium-term will be a challenge involving difficult choices.
Partly offsetting any negative impact in the medium-term will be the benefits of implementing the Harmonized Sales Tax (HST) on July 1, 2010.

Although the HST will result in certain currently exempt products and services being taxed, moving to a value-added tax structure will make the tax system more economically efficient and will improve the competitiveness of Ontario businesses by lowering the cost of doing business in the province.

Wish you & Your Family Happy Holidays !
Jimmy

Is it Time to Lock into Long term mortgage interest rates?

The question of whether to lock into the current low mortgage interest rates or continue to stay short term is a question that I often get asked.

The answer depends upon many factors including your ability to tolerate risk.

I've written many times in the past that the best route was to go short term on your mortgage, for at least the past 20 years or so. Mortgage rates are predicted to increase beginning about the middle of 2010 and some are predicting that the Bank of Canada will increase the prime rate by as much as 2.75% over the period from the middle of 2010 to the end of 2011.

If this happens, then it's likely mortgage interest rates will also increase by about the same or even more than 3% over the same period.

Once we come out of this recession and the economy starts to improve, rates will increase and we may never see these low rates again for many decades to come. It could be time to lock in for 5, 7 or even 10 years at the current rates to take advantage of these all time low mortgage interest rates.

This would indicate with almost certainty that you should lock into long term mortgages.

I wish you and your family a Merry Christmas and all the best in the New Year!

Jimmy

Ottawa may raise minimum down payment for home buyers and reduce amortization period‏

OTTAWA -- The federal government is ready to clamp down further on mortgage rules if the boom in the Canadian housing market turns into a bubble, says Finance Minister Jim Flaherty.

In an exclusive interview with Canwest News Service and Global National, Mr. Flaherty said the government is closely monitoring the red-hot housing market for signs that it is reaching "irrational" levels.

"The reality is we have low mortgage rates . . . so we can expect some upward pressure on housing," he said. "That's OK, as long as it doesn't become a bubble. We're watching that."

If necessary, the government is prepared to further tighten the conditions under which the Canada Mortgage Housing Corporation insures mortgages, the finance minister said.

In July 2008, amid the fallout from the subprime mortgage crisis in the United States, the Finance Department announced that CMHC would shorten the maximum amortization period that it will accept to 35 years from 40, as well as require a down payment of at least 5% of the value of the home. The new rules, which came into effect in October 2008, effectively made it more difficult for prospective homeowners to receive government-backed mortgages.

"If we have to, we'll do what we did last year and limit the rate of amortization further than we already did, and require higher down payments," said Mr. Flaherty.

His remarks come as some leading private-sector economists warn that the housing market might be getting ahead of itself amid a relatively modest recovery. In a recent report, Bay Street economist David Rosenberg estimated that housing prices are overvalued by as much as 15 to 35%. This week, the Canadian Real Estate Association reported that sales of existing homes spiked 73% year-over-year in November, while the national average sale price rose 19%.

"If being 15% to 35% overvalued isn't a bubble, then it's the next closest thing," said Mr. Rosenberg, chief economist for investment firm Gluskin Sheff.

In recent weeks, Bank of Canada governor Mark Carney has expressed concern about the amount of debt that Canadian households have been racking up since the central bank cut its benchmark lending rate to near zero. Mr. Flaherty also wants to remind Canadians that the easy money won't last forever.

"Interest rates are at historic lows. They are naturally going to go up," said Mr. Flaherty. "People have to make sure that the mortgage on their home that they've put on today will be affordable at higher interest rates in the future."

The discussion of a potential housing bubble shows how much the economic climate has improved since the end of 2008, when it was still unclear how the world would pull out of the global financial crisis.

Looking back, Mr. Flaherty said the turning point was a meeting of the G7 finance ministers and central bankers in October 2008, where, after "a lot of finger-pointing by the Europeans at the Americans," they agreed to backstop the world's financial system.

"We were in a situation, where the markets might not open on Monday, where banks were failing in Germany, in the United Kingdom, in the United States," the finance minister recalled. "It was quite scary,"

In January's federal budget, Mr. Flaherty announced the government would pump $61-billion in public funds into the economy over two years, the biggest stimulus package in Canadian history.

Mr. Flaherty once again predicted that next year's budget will consist largely of the second year of the stimulus plan.

"Some of the stimulus items can be tweaked, certainly, but Canadians ought not to expect any major new spending programs," he said. "It may be kind of a boring budget, but boring is just fine in 2010."

The Conservatives have repeatedly promised not to raise taxes or cut transfers to the provinces or individuals to eliminate the deficit, which is projected to hit $56-billion this fiscal year. Instead, the government plans to rely on economic growth and possibly spending restraint to make up the shortfall.

In a recent editorial, however, two former senior Finance officials, C. Scott Clark and Peter Devries, wrote that "any credible budget will have to include tax increases."

Mr. Flaherty disagrees. "The easiest thing in the world to do is raise taxes. What it does mean is you don't have to have discipline in government spending. And Canadians know that there's wasted government spending -- some degree of it."

When is the Best time to Sell Home in Greater Hamilton-Burlington Area

Do you think that it is better to purchase a home now or in the spring?


This article will discuss the pros and cons to doing either, this article will go into detail for both options.

Enjoy!

Jimmy

The spring market in the Greater Hamilton-Burlington Area is almost a legendary time. It's the time when all sellers and buyers come out of hibernation and transact real estate. But if you wait for Spring to sell your house, it may be too late.

Right Timing the Sale

If you are thinking about selling your house, you may want to do some planning now before you are ready to get your house listed on the market. This way, you can know what to expect and how long it will take. You will also have knowledge of when the best time to sell your house will be.


When is Spring in Real Estate?

Good question. When you think of Spring, you think of April showers and May flowers. But in real estate, the spring Market is half over by then. Will you have missed your buyer if you list your house in April or May? Are you still going to get the best traffic, and therefore the best offers, through your house?

Well, maybe. If you are thinking of putting your house up for sale in the Spring, you should think February. February? Yes, February. Actually, the landmark date that you should think of as the beginning of the Spring Real Estate Market is the Super Bowl. That seems to be the time when most people venture out of their houses, are settled back in after the holidays and are starting to get stir crazy. It's also a great time to start getting your house on the market for sale.



Why is February the best month to sell?

Think about if for a minute. These days, the real estate market is slowing down in many areas. Your house may take several months to sell. Most people want to find a house buy the end of June at the latest so that they can move over the summer when work loads are lighter and kids are not in school.



If you list your house in May and it takes three months to sell, you will find your self in July and in a very quiet market. However, if you list your house in February and it takes three months to sell, you will find yourself in April, with a month or two left in the busiest real estate time of the year. No worries, no pressure.


When are the Market Slowdowns?

You have nothing to loose by listing your house for sale in February. In fact, if prices are steady in your area, you can be sure that there are many, many houses for sale. If you get a jump on some of the new listings that will surely be coming on the market for Spring, you may find yourself ahead of falling prices and get more money for your house.

Additionally, when do you think the owners of those houses are waiting for to relist their houses for sale? Spring, of course. Don't you think it will be a good idea to get your house on to the market before there is so much more inventory added to the mix?

Must I sell My House in the Spring?

No. of course not. There are many reasons why other times of the year are great times to sell as well. For example; only serious buyers are house hunting in the winter time, fall market is busy because people want to move during holiday vacation and there is less inventory for sale during the summer months so you may choose this time as a better time to sell

You may find that you can not wait until Spring market and that you have to sell your house at a particular time of year. Don't worry. Find a great realtor and you should get the most that the real estate market has to offer.

Bottom Line, Don't Miss the Spring Real Estate Market

If you are targeting Spring market because you want to make the most out of the sale of your house, or if you are waiting for Spring to put your house on the market for sale, don't wait too long. You may just find out that the Spring real estate market has sprung without you.

I hope you have found this article helpful

Jimmy


What Did Your Neighbour Sell For ?
Find out at : www.JimmySingh.ca

Good News for Hamilton-Burlington Home Owners.Effective Dec 1,2009 Residential Rates have Dropped..

Did you hear the good news yet?

Residential Mortgage Rates have dropped!

Effective December 1, 2009*

Term 6 Month 1 Year 2 Year 3 Year 5 Year 10 Year Var
Rate Prime
Rate
Posted Rates 5.10% 4.10% 4.25% 5.05% 5.85% 6.90%
Best Rates 4.59% 2.75% 3.05% 3.49% 3.99% 5.34% 2.15% 2.25%

GREAT NEWS!!

3, 4, 5, 7 & 10 FIXED RATES HAVE DROPPED

ALSO---VRM rate is now 2.15%...( P-.10% )

see the current rates:
www.JimmySingh.ca

Dubai's debt..and impact on real estate prices ...

I was just reading about Dubai's debt problem the other day..& it really surprised me..

Here are some interesting facts on Dubai's debt

Property prices in Dubai are half of what they were a couple of years ago

Ben Thompson, business reporter, DubaiFinancial markets and businesses are closed here for the Eid holiday - some suggest that's why the announcement was made .

It's sparked real shock that things have come to this. Just 12 months ago, few could have believed the city would find itself asking for this lifeline.

It seems Dubai is now paying the price for living on borrowed money.Of course, everyone knew the boom couldn't last forever, but no-one expected it to collapse when, or as suddenly, as it did.

Property prices have more than halved over the past year and investors have fled.The official figure for Dubai's debt is $80bn, but talk to anyone here and the feeling is the figure is much higher. Unpaid bills, abandoned cars and empty buildings are all too obvious. Some analysts put the real figure at close to $160bn.

www.JimmySingh.ca

Housing performance in Canadian Real Estate markets expected to accelerate in 2010...says RE/MAX .

Housing performance expected to accelerate in 2010, as economic stability returns to Canadian markets, says RE/MAX

Mississauga, ON (December 3, 2009) - In the midst of one of the most tumultuous economic periods in recent history, residential real estate has proven to be a safe harbour, with sales and average price expected to post gains in most major Canadian cities in 2009, according to a report released today by RE/MAX.

The RE/MAX Housing Market Outlook for 2010 examined residential real estate trends in 23 markets. The report found that sales are forecast to recover in almost all major centres by year-end 2009, led by an anticipated 45 per cent increase in Greater Vancouver. Two markets -- Ottawa and Quebec City -- are expected to hit historic highs in the number of homes sold. Average price should post new records in 65 per cent of markets surveyed this year. As economic performance ramps up across the country, so too will residential real estate. Eighty-three per cent of markets (19/23) are expecting sales to increase over 2009 levels while housing values are forecast to escalate in 91 per cent (21/23) of Canadian centres in 2010. The remaining markets will match 2009 levels.

Approximately 465,000 homes are expected to change hands nationally in 2009, a seven per cent increase over one year ago. Canadian housing values are forecast to close the year at $318,000, up five per cent from $303,594 in 2008. By year-end 2010, the number of homes sold is predicted to climb another two per cent to 475,000 units. The average price of a home is also expected to experience an uptick, rising two per cent to $325,000 - the highest level in Canadian history.

"2009 was without question the year of the house," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "Real estate not only defied industry and analysts' predictions in 2009 -- it's performance went well beyond the realm of expectation by boosting consumer confidence levels and ultimately kick starting the national economic engine. While low interest rates were a principle factor driving home buying activity, no one can discount the value that Canadians place in owning a home."

November Resale home stats are inspiring for Hamilton-Burlington Area

(December 3, 2009 – Hamilton, Ontario) The Hamilton-Burlington area resale market reported a total of 1,082 units sold in November, indicating an increase of 59.4 per cent over the same month last year, but 0.6 per cent lower than November 2007. This indicated that the market has returned to sales levels equivalent to the period of 2005-2007.

The total unit sales for the first 11 months of 2009 are being reported at more than 3.8 per cent higher for the same period last year, while new units listed are eight per cent lower for the year-to-date, according to Multiple Listing Service® (MLS®) statistics released by the REALTORS® Association of Hamilton-Burlington (RAHB).

“Hamilton-Burlington and surrounding area is seeing an impressive market,” said Joe Ferrante, RAHB President-Elect. “With interest rates steady consumers continue to see area real estate as a sound investment” added Ferrante.

In the residential market, 12,341 properties changed hands in the 12 months beginning December 1, 2008 and ending November 30, 2009. The average price of these properties was $289,914. The number of properties listed during this period was 16,437. Compared to the preceding twelve months this is an increase of 1.9 per cent for sales, an increase of 2.1 per cent in average price and a decline in listings of 7.8 per cent.

Residential properties sold during November totalled 1,017 which included 800 freehold properties and 217 condominiums. Commercial sales for November, including industrial, farm, vacant land and business, totalled 65 units.

The average price of freehold residential properties sold in the month of November was $332,318, an increase of 7.8 per cent over November last year, and are up 5.5 per cent from last month. The average sale price reflects the dollar volume of residential sales divided by the number of total residential units sold.

In the condominium market the average price of condominiums in November was $229,490, an increase of 6.3 per cent over November 2008 and an increase of 3.8 per cent from October.
The total number of units listed for sale during November was 1,360, which is 15 per cent more than were listed in the same period in 2008, but 10.6 per cent fewer than were listed in October.

“Market trends differ between cities, and among areas and housing types within a city,” added Ferrante. “For local market expertise and information, buyers and sellers should use the professional services provided by their REALTOR®.”

Unit sales reflect “all property types” including residential, condominiums, commercial property, farmland and sale of businesses.


www.JimmySingh.ca