House Prices stay high as Sellers fight to keep them up !!
In many of my Blog Posts I always maintained in the past prices will remain high. Also buy a house you love and do not just look at is as an investment . One article today was published in the Hamilton Spectator, which prompted me to write this short blog.
A quote from one article in the Spectator was as follows
“Sellers stubbornly hold onto their perception of what their home is worth, whereas buyers turn on a dime.”
In tough economic times Sellers will fight to keep their homes that is for sure. I also have always pointed out in my own view the Canadian Economy is evolving to a “ European type of economy” The HST is similar to the VAT ! Houses are expensive and we have to work longer and harder to keep them.
Burlington Inventory is at 680 homes including Condos . Simply put inventory’s are low and interest rates are still low. The amount of inquiries I have received have doubled in the last two weeks. I am expecting a busy fall market.
I will observe Buyers are not as rushed to make an offer and they are actually thinking.
This is a welcomed relief !!
Carl

The Bank of Canada raised their rate by 1/4% this morning. Bank prime is now at 2.75%.

The Government has commented that inflation is at a predictable rate. The Banking sector remains strong. I took an average of the lender rates emailed to me on a daily/weekly basis and the best five year rate I could find was 4.19 and the best 10 year rate was 5.20 . Fixed rates on five and ten year terms remain very competitive.

As of this morning there is a total of 767 active listings in Burlington. Its good to note a few short months ago we were around 400 if I recall. However staged homes and if  priced correctly still result in bidding wars or at least quick sales usually around 98% of asking price.

I have noticed Buyers are more cautious and the inventory is a sign of a more balanced market . Already some areas are starting to reflect a buyers market. The fall market will tell the story.  Some buyers and Sellers have some HST Jitters but the costs are minimal when you look at the size and scope of the transacation. ( But yes the HST is just another tax grab ).  

Carl

So many people are asking if there are exceptions to the charge. The HST will be charged on Commisions.

What I can determine is as follows:

• If the deal is firmed up before july 1 and closes after July 1 – 5% gst is charged 
• If the deal is 90% done before July 1 , and firms up  after that  possible 5% depending on what needs to be completed.

• Otherwise anything after July 1 is 13%

$200,000 @ 5% commission  is $ 10,000.00  .This is split four ways  ( Buyer, Agent, Seller Agent, Buyers Broker, Sellers Broker )

HST would be13% or $ 1300.00 cdn funds.

Please access all government web sites in first HST article. New Homes tend to be a bit more complicated . There is a grandfather clause which I have not covered. This depend on how much of the home is constructed before and after.

Hope these three HST articles assist you with your planning,

carl

The HST will not be on Condo Fees. However the unfortunate thing is most of the components of a Condo Fee are made up of services. Landscaping, Maintenance and Repair. As of July 1st These services will have HST 8% which is added to the 5%( GST) . The total tax is 13%. I understand water may not have HST but have not verified this.

So it is safe to say you will see budgets " stretched" and yes Condo Fees will increase by around 5% to 8%. There will be pressure on contractors to lower their prices as well.

So yes there is HST ( sort of ) ,

Carl  

Canadians flock to buy U.S. real estate ORLANDO, Fla. – March 19, 2010 – Canadians were the largest group of foreign homebuyers in the United States in 2009, according to the National Association of Realtors – and Florida Home Finders says they accounted for 30 percent of purchases by foreigners in the Sunshine State. Canadians find U.S. properties less expensive, and they’re rushing to take advantage of a favorable exchange rate and warmer climate. “You have this rare perfect storm in the United States where you have low interest rates, still falling prices and a Canadian dollar that keeps going up,” says Arnold Porter of Phoenix-based realty brokerage Arizona for Canadians. Toronto resident Stacey Lynn recently purchased two condominiums in Florida: a one-bedroom in Naples for $54,900, or the cost of a parking space at an upscale condo in downtown Toronto, and another in Sarasota for $86,000 that would have been worth over $200,000 at the height of the housing boom. Experts predicted that a flood of Canadians would enter the U.S. real estate market during their March break. Source: Hamilton Spectator (03/16/10) Wong, Tony © Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688 The combination of our low prices and the Canadian dollar near par makes it as good a time to purchase as when I moved here from Ontario in 1992. Please let me know if I can help you or any of your clients with their search for a Florida home. You can search our MLS by visiting my website at www.johndanzey.com Looking forward to working with you and your clients.

JUST  SOLD 98% ASKING  PRICE

OPEN HOUSE THIS SATURDAY AND SUNDAY 2 PM TO 4PM FEB 13 – 14

This lovely 4 bedroom 3 level side split is in a quality neighborhood in Stoney Creek, Ontario. The home is well cared for and neat as a pin.  Full wheelchair accessible home!! The home has been retrofitted for someone with a disability. Complete main floor living with access to deck. MlS # H 3030167 Priced comptetively at $ 289,000 .  A Family could save thousands converting a home to accomodate  their needs. Driveway has is double drive and can easily accomodate 4 cars. Also three large tastefully decorated bedrooms on the top floor. This home is larger than it looks .  For complete photos please access www.realtor.ca and enter H 3030167.

The Greater Hamilton-Burlington area resale market reported a
total of 750 units sold in January in the Hamilton-Burlington Real Estate market.

The January Sales were more normal results. December was booming and a slight dip was inevitable. Residential properties totalled 714  sales in total.

The average price of freehold residential properties sold in the month of January was $302,474, an increase of 10 per cent over the same month last year.Inventorys are very low especially in Oakville, Milton and Burlington.

 In the condominium market the average price of condominiums in January was $230,583, an increase of 10 per cent from January 2009.Some information for this article provided by the Hamilton,Burlington Real Estate Board.

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Burlington Condos : Are you curious what your Condo in Burlington, Ontario may be worth ? Thinking of upgrading or downsizing.  Get a Free Report with up to the minute statistics based on all the Condos in Burlington for the past six months. To get your free report on Burlington Condos contact carl @ carlstars.com or go to condosatwalkersline.com.    Carl Stars

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Some 89% of Canadians think real estate prices in their own neighborhood will either increase or stay the same over the next six months, according to a poll last week by Nanos research. The results from the poll of 1,003 Canadians, conducted in mid-December, shows Canadians are as confident in the national economy now as they were prior to the recession. And a key driver to that, says the poll authors, is real estate. Some 46 per cent of respondents say the value of real estate in their neighborhoods will increase in the next six months, compared to just 7.6 per cent who say it will decrease. As for the overall economy, 49 per cent says it will improve in the first half of the year, compared to 12 per cent who expect it to worsen. The poll analysed data by region as well, and all areas showed increasing sentiment. It was strongest in Ontario and weakest in Quebec. Sentiment about the economy rose in every region of the country. It is strongest in Ontario and Western Canada and weakest in Quebec. Some 16 per cent of respondents say they are better off in the past year, up from 14.6 per cent in the previous quarter, while 31 per cent say their personal finances were worse off, compared with 33.5 per cent in the previous report.

Wow ! What  a Year . It has been a wild ride.  The Real Estate Market was fairly quiet in the beginning of the year. It certainly picked up near the end of the year. Today I cant believe I am doing three Market evaluations in Burlington, Ontario  this close to Christmas.

I wanted to post a short note on my blog to wish everyone a Merry Christmas and a Happy New Year!

I am looking forward to the start of another  exciting year !!

Have a safe and Happy Holiday.

Carl