Recent stats that have recently come in indicate an 8% increase in house prices since last year in Burlington. For surrounding areas such as Hamilton we are enjoying a 3.7% increase.

I still have too many clients that are coming back to me and clearly they have used their homes as a line of credit. Consolidate "run" the  credit cards up again consolidate and the road to no where continues ! !  

As of this morning there are 561 Active Listing in Burlington which includes Condominiums. Inventorys are low and interest rates are  low. Give credit to the government right now who are consistently warning Canadian's  to pay down their personal debt.

Consumers most realize a $ 200,000 mortgage at 3% is approximately $ 948.42 amrt 25 years and should rates go up to 7% the payment jumps to $ 1413.55.

A home is a great investment but it is only one component of wealth building.

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

Please take note:

Just a quick update :

I wanted to post some general information on HST. Many people are asking questions  so I hope this clears things up.

HST is 13% . It is considered value added Tax.  

If you are Selling your home:

Real Estate Agents who normally charge 5% GST on commissions will have to charge 13%. This is regarding resale homes and is on the commission only. This  will be on July 1, 2010. There are some exceptions but on a regular resale home. This is the tax that would apply.

If you are buying a Resale home extra costs will be incurred HST will be charged on home inspections, legal services, high ratio mortgage premiums, fire insurance premiums.

OREA estimates the HST will add $1,449 in new taxes to an average resale home costing $302,354. And, OREA claims the HST will add an estimated $262 million in new taxes annually to residential resale real estate transactions.

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RE new Homes:  Builders would use the same process they use with regard to GST. The Buyer must qualify for the rebate. ( The new home would be a primary residence )  Clarify your HST before signing on the dotted line and read the fine print.

Under the HST, new homes worth less than $400,000 will qualify for a 6% tax rebate, but new homes worth more than $400,000 will be subject to an additional 8% tax. To explain if a buyer pays $500,000 the net tax would be $ 16,000.00 after receiving the rebate of $ 24,000.00

Here are some helpful Links.

http://www.servicecanada.gc.ca/eng/goc/gst_new_housing.shtml

http://www.fin.gov.on.ca/english/index.html

http://www.rev.gov.on.ca/english/guides/rst/206.html

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/menu-eng.html

All information deemed reliable but not guaranteed.  Please seek the advise of your tax professional and contact government agency to clarify your costs. As I  deal with residential resales it appears the impact will be minimal. I encourage real estate to be a long term investment.  Hope this information helps.

Carl

August sales continue trend

“With summer coming to a close, it is a good time to reflect on the local resale market,” said Bruce King, RAHB President. “The August numbers continued the positive trend set in July, with sales and average price up, year over year. 2009 has thus far continued to surprise market watchers.” (more…)

(June 4, 2009 – Hamilton, Ontario) The Hamilton-Burlington area resale market reported a total of 1,342 units sold in May, indicating a decrease of 8.2 per cent over the same month last year, but an increase of 9.4 per cent over April.  The total unit sales for the first four months of 2009 are being reported at 17 per cent lower for the same period last year, while new units listed are 7.6 per cent lower for the year-to-date, according to Multiple Listing Service® (MLS®) statistics released by the REALTORS® Association of Hamilton-Burlington (RAHB). (more…)