Happy BelatedCanada Day From The Ontario Government - Welcome to the HST!

 Happy Belated Canada Day everyone!

On June 30th, I was driving home from a client's home inspection I noticed that every gas station I passed had insane line ups. At first I didn't get it but then realized that these Ontarians were trying to fill up in their gas tanks to save a few dollars from the dreaded HST.

The Ontario government in their infinite wisdom decided to implement the HST as of July 1st, 2010. I for one, think the implementation date is horribly ironic when you consider many Canadians already feel they are overtaxed (myself included) and don't see the value of all the taxes they pay reflected in the services they receive and in the wake of government spending scandals such as eHealth.

According to the Ontario Government's web page devoted to the HST; "Ontario's comprehensive tax package, including the harmonized sales tax, will create jobs by making Ontario more competitive and provide personal tax relief." .*  They also state that the current structure hurts Ontario's economy and job creation due to the fact that sales tax is hidden in the cost of doing business in Ontario.  The HST, they argure will remove this hidden tax by refunding sales tax based on most business inputs.

Theoretically, lower business taxes should mean lower prices for consumers,  Lower business taxes should attract increased business investment which in turn will increase jobs and incomes for Canadians.

However in a global economy just now recovering from a severe worldwide recession will a small savings in business tax really attract that much business investment from companies just getting back on their feet?  According to the Ontario government, yes.  A report from Jack Mintz estimates  "estimates that these tax changes, together with other recent tax measures, will lead to $47 billion in increased capital investment and create 591,000 new jobs within 10 years."*

Now that is all fine and good that new jobs will be created and that business tax will be lowered but what does the HST mean to you?  Although many items remain at similar tax rates; below are some items that will cost more as of July 1st.

• Internet Access Services 
• Cleaning Services
• Landscaping Services
• Hotel Rooms
• Taxis
• Airline Tickets
• Magazines
• Home Renovations
• New Homes over $400,000
• Real Estate Commissions
• Lawyer Fees
• Cigarettes 

The full list can be found at http://www.rev.gov.on.ca/en/taxchange/taxable.html

It is important to note that tax rates do not change for over 93% of all items/services but at a time when many Canadians are struggling to get by I hope that what the Ontario Government is promising does happen and this tax does not just add to Ontario's overwhelming tax burden.

What do you think?  Will the HST hurt or save Ontario? Would love to hear from others.  Feel free to leave comments or tweet me at www.twitter.com/marianogigante

As always, you can read more at www.marianogigante.com

May brings lower homes sales and fewer new listings - CREA

OTTAWA – June 16th, 2010 – Statistics released by The Canadian Real Estate Association (CREA) show that home sales activity and new listings in Canada declined in May.

Seasonally adjusted home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards declined nationally by 9.5 per cent in May from near-record level activity the previous month. While activity declined in more than 70 per cent of local markets, the lower national figure resulted largely from fewer sales in Toronto, Vancouver and Ottawa.
Actual (not seasonally adjusted) national sales activity was down 4.3 per cent in May from the same month last year. In a departure from the normal seasonal pattern, national activity levels in May were also down from April levels. This suggests that the combination of changes to mortgage regulations and rising mortgage rates pulled forward a number of sales into April that would have otherwise taken place at a later date.

“May was the first full month in which sales activity was affected by these changes,” said CREA President Georges Pahud. “An accompanying decline in new listings and housing starts means these changes are also affecting the supply side, which will keep the market balanced and Canadian home prices stable.

The seasonally adjusted number of homes that were new listings on Canadian MLS® Systems in May 2010 declined by four per cent from the previous month. This marks the first monthly decline in new listings in eight months. New listings had been climbing sharply, rising from a four-year low last September to the second highest level ever last month.

The number of homes listed for sale on Boards’ MLS® Systems at the end of May was up 5.4 per cent from levels at the same time last year, when the supply of homes for sale on the market had started declining.

The national average price of homes sold via Canadian MLS® Systems rose 8.5 per cent in May from a year ago. This is a smaller increase compared to those recorded over the past nine months.

“Supply and demand has become more balanced in a number of major markets,” said CREA Chief Economist Gregory Klump. “Homebuyers now have more choice and are likely be in less of a rush to purchase than they were recently, so the amount of time it takes to sell a home is expected to rise in the coming months.”

With last year’s string of downwardly skewed average price values having now mostly passed, year-over-year national average price comparisons are coming back into line with changes in the national weighted average price.

The weighted average price compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. It climbed 8.4 per cent on a year-over-year basis in May 2010. Similarly, the residential average price in Canada’s major markets was up 9.8 per cent year-over-year in May, while the weighted major market average price rose 10.7 per cent.

The actual (not seasonally adjusted) number of months of inventory stood at 5.3 months in May 2010. This is up from 4.8 months at the same time last year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

On a seasonally adjusted basis, months of inventory stood at 6.1 months in May, the highest level since last April.

“The number of months of inventory may rise further in response to easing sales activity and a further rise in the number of active listings,” said Klump. “However, the number of newly listed homes will ultimately retreat in response to a more competitive sales and pricing environment in a number of local markets. The outlooks for the Canadian economy, employment, and mortgage market trends remain upbeat, so supply and demand will remain balanced on a national basis. Canada will avoid a U.S.-style home price correction.”

PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month.

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.
The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 96,000 REALTORS® working through more than 100 real estate Boards and Associations.
Further information can be found at

http://www.crea.ca/public/news_stats/pdfs/Media_May10rpt_e.pdf

Belated Thanks to Everyone who Participated in the Community Garage Sale

It was a big success!  Although it was supposed to be a rainy day, we were lucky to have a sunny morning full of buyers roaming the streets and residents getting rid of much needed clutter in their homes.

After visiting each sale, I was glad to hear that people were extremely pleased with the turnout and some were even asking if we were going to turn this into a yearly event - sounds like a great idea to me!

So stay tuned next spring and we will run the sale again.  If you want to stay in the loop on the Garage Sale plans or any of the other exciting community events I will be leading or participating in, become a fan of my  Facebook Group www.facebook.com/marianogigante or send me your email address to marianog@sutton.com and I will make sure you are the first to know what is coming up

Have a great day everyone and if you are on Twitter follow my tweets, www.twitter.com/marianogigante

GTA REALTORS® Report Monthly Resale Housing Figures

TORONTO, JUNE 3, 2010 ‐ Greater Toronto REALTORS® reported 9,470 sales through the Multiple Listing Service® (MLS®) in May, representing a one per cent dip from May 2009. In comparison to previous years, this was the third highest May sales result on record.

"The pace of transactions slowed in May following record‐setting sales in February, March and April,” said Toronto Real Estate Board President Tom Lebour. “Buyers who otherwise would have been purchasing a home in May moved more quickly this year, likely to get ahead of mortgage rate hikes.”

New listings were up 38 per cent annually to 18,940. The average price for May transactions was $446,593 – up 13 per cent compared to the average of $395,609 recorded in May 2009

"The gap between listings and sales has widened, which means there is more choice for buyers," said Jason Mercer, TREB's Senior Manager of Market Analysis. “The annual rate of price growth will slow in the second half of 2010, from the current double digit pace into the single digits.”
 
For more information or for a personal no obligation home evaluation please contact me at marianog@sutton.com or follow my tweets @marianogigante

April Experiences Record Number of Buyers and Sellers

Greater Toronto REALTORS® reported 10,898 sales through the Multiple Listing Service® (MLS®) in April, representing a 34 per cent increase compared to April 2009. There were also 20,683 new listings in April – a 59 per cent annual increase. Both the sales and new listings results amounted to new records for the month of April under the current Toronto Real Estate Board (TREB) boundaries.

“The GTA resale market is functioning properly. Sales were high as buyers continued to take advantage of affordable home ownership opportunities. Listings grew as home owners reacted to strong sales and price growth,” said Toronto Real Estate Board President Tom Lebour. “More balanced market conditions will result in sustainable rates of annual price growth in the second half of 2010.”

The average price for April transactions was $437,600 – up 13 per cent compared to the average of $385,641 recorded in April 2009.


“Home sales continue to be driven by many different segments of the market, with sales growth for all major home types in both the City of Toronto and surrounding 905 regions,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “Home sales will remain strong in the second half of 2010, but will slip from the current record pace as borrowing costs rise.”

Median Price

In April, the median price was $373,000, from the $330,000 recorded during April of 2009.

If you are thinking of selling, now will be the best time to get top dollar for your home for the next few years.  Selling now will also let you take advantage of the record low interest that won't last forever.

Please visit http://www.marianogigante.com/ to learn more. 
Follow my tweets @marianogigante

A little real estate humour for the day

Hi everyone,

It has been still crazy with this red hot market.  I will be back to post some of the latest stats but in the meantime I found this on the web and thought you all might get a kick out of it.

What I am taking away from this clip is to always make sure that I proof my ads.   

Hope you like it. 

It is from the Ellen Degeneres show.  Ellen searched everywhere for the funniest real estate listings she could find -- and she found them! A misspelling in one of these listings put an entirely new meaning to having a good time at home!


http://ellen.warnerbros.com/2010/04/ellen_found_the_funniest_real_estate_listings_0413.php

Thanks Ellen! Catch more info about Ellen @ http://ellen.warnerbros.com/

Rising Mortgage Rates - what does it mean?

Hi everyone,

These past few weeks have been extremely crazy in real estate particularly with yesterday's news that three big banks are raising interest rates on their closed rate mortgages.  This rise signals the end of some of the lowest rates we have ever seen.  What does this mean?

Well, consumers now have an additional dilemma, either stay flexible, hope for the best and ride out the next several months or lock in to long-term loans.


Most of the industry say that this is just the beginning of future increases that will make home ownership more expensive for the rest of 2010. .



Realtors and other experts say they ex­pect to see a flurry of activity over the next few weeks as some homeowners and homebuyers scramble to lock in their mortgage rates before they go any higher and should further fuel this extremely hot real estate market in the GTA by motivating home buyers eager to cash in on still low mortgage rates. 



For homeowners or homebuyers who are nervous about Monday's rate increases, the security of five-year, or longer, fixed loans may be the best option, say mortgage experts.  "If that (rising rates) causes you discomfort then per­haps a fixed rate's where you want to be," said Robert McLister, a mortgage planner and editor of the Canadian Mortgage Trends website.  "If you're closing in the next six months, I suggest people do that quickly."

The changes affect closed mortgages with terms of three, four and five years at RBC Royal Bank (TSX:RY), Laurentian Bank (TSX:LB), and TD Canada Trust (TSX:TD). Rates for mid-term mortgages like these tend to reflect the banks' borrowing costs on bond markets, where mortgage loans are financed.

Other banks are expected to follow suit.



The biggest increase announced Monday affects five­year mortgages. All three banks are hiking their posted rate by six-tenths of a per cent to 5.85 per cent from 5.25 per cent. That means a homeowner taking on a mortgage of $250,000 at the new posted rate of 5.85 per cent over a 25-year amortization period would pay $1,577 a month. Prior to Tuesday's hike, that mortgage would have cost $1,489 a month, or $88 less.



Many people with decent credit history who are ap­plying for mortgages can negotiate better than posted rates.



The Bank of Canada is expected to begin raising lend­ing rates this summer as it moves to fight growing infla­tionary pressures in the economy. The bank has kept its key overnight rate at a historic low of 0.25 per cent for more than a year to help stimulate the economy.



The latest increases reflect real-time market inter­est rates, which usually signal future central bank rate jumps months in advance.


Now is the best time to sell your home and get into a new one.  Homebuyers are eagerly seeking homes in Olf Meadowvale Village, Levi Creek, Churchill Meadows, & Sheridan Homelands.  Don't miss your chance to get into your dream home while you can still afford it while getting top dollar for your home. 

Please visit http://www.marianogigante.com/ to learn more or follow me on my twitter for more market updates.
www.twitter.com/@marianogigante.

Happy househunting everyone!
Mariano