A recent survey of people in Ontario and BC indicates that many home buyers do not understand the new HST rules. This confusion is actually translating into serious doubts about buying now rather than later.

According to the survey of 765 Royal Lepage agents “more than 86 per cent of respondents said the HST is affecting their business somewhat.”

The biggest misconception is that the HST applies to resale properties. It does not. It applies to fees and commissions for all home sales, but only to the sale price of new homes.

If you have any questions at all about the impact of the HST on your K-W home sale or purchase please contact me and I’ll give you the full story.

According to a recent CBC survey of home buyers 71 percent of current and future homebuyers consider houses too expensive. This is especially the case in larger urban centers.

However, as is usually the case when the market goes “hot”, many of these same people buy anyway because they feel pressured to do so. Because the pricing trend is upwards they feel if they don’t buy now they will be confronted with even higher prices when they do eventually get around to buying. And certainly there is a lot of truth to this way of thinking.

Most Canadian industry analysts now think the market is going to cool down for the latter half of 2010. Government incentive programs are gradually coming to an end, interest rates are going up, qualification for mortgages is becoming harder, and the HST is coming into effect in Ontario and BC on July 1.

So in spite of the current high prices these factors still make this a good time to buy. Certainly there are not many analysts predicting a sharp decline in home prices any time soon.

Even the real estate meltdown in the U.S. in 2007 and 2008 was unable to squelch the demand for home purchases in Canada for more than a few months. Current government moves will probably cool the market down a bit, but most think the price trend will remain upwards.

If you are looking for a current evaluation of real estate opportunities in the Kitchener-Waterloo area, please contact me or give me a call.

As of April 19, 2010 some important mortgage lending rule changes will be coming into effect in Canada. In this YouTube video Peter Hendershot discusses the three most important rule changes that effect homeowners, mortgage borrowers, and people planning on refinancing their mortgages.

OTTAWA, Canada – A recent study prepared by the Altus Group for the Canadian Real Estate Association, claims that federal tax policy creates disincentives to commercial real estate sale and redevelopment in Canada.

According to the report “many income property owners are reluctant to sell and reinvest because of the capital gains tax and recaptured capital cost allowance.”

In other words commercial property owners are reluctant to sell their properties for redevelopment because the tax man would not leave them with enough money to reinvest in other projects. So projects that might otherwise be undertaken are needlessly delayed.

Increased commercial real estate activity is seen as an important way to stimulate the economy and create much needed jobs. Industry reports indicate that commercial real estate transactions declined by 51 percent in 2008, and dropped even further in the first half of 2009.

The report also points out that commercial real estate transactions generate significant spin-off activity. According to the study, almost $300,000 in related spending is created with each multi-unit residential transaction.

CREA is recommending tax deferral on income property reinvestment to give a kick-start to commercial real estate sales. This would also create a significant number of jobs in the renovation, redevelopment and other construction sectors.

KITCHENER-WATERLOO, ON (July 6, 2009) –A total of 722 homes sold in Kitchener-Waterloo and area in June, a 1.3 percent increase over June 2008, and the second best month on record for residential property sales through the MLS® System of the Kitchener-Waterloo Real Estate Board (KWREB). In fact, overall June sales activity was up in all categories except multi-family and land sales.

“I think what we are seeing in Waterloo region, is the resale housing market returning to its prerecessionary pace,” says Karen Shartun, President of the KWREB. “June was also the third month in a row that sales exceed 600 units, so we have some strong momentum happening in the market.”

REALTORS® of the KWREB have traded 3,174 homes year-to-date for a total value of $820,966,284, including 2,109 detached homes and 541 condominium units. This represents a 9.9 percent decrease in the total number of units sold so far this year compared to last year, a 15 percent decrease compared to 2007 (a record breaking year), and a 3 percent decrease from the 3,275 units sold in the first half of 2006.

The most active price range during the first six months of the year was for homes selling between $225,000 to $250,000 with a total of 508 sales. For homes selling in the upper most tiers, things have been quite a bit slower–in the last 6 months only 13 homes have sold for over $750,000, compared to 28 during the same period last year.

The demand for more affordably priced homes has translated into a 2.5 percent decrease in the average price of all homes sold year-to-date to $258,654.

The supply of homes active on the KWREB’s MLS® System to the end of June edged up 3.3 percentage points to 2,089 units. The President of the KWREB says she expects that sales for the remainder of the year will continue to improve, as prospective home buyers continue to take advantage of low interest rates, and the economic horizon starts to look brighter.

Consumers uncertain about current market conditions should work with a REALTOR® to develop an effective selling strategy. If you are buying, a REALTOR® will negotiate on your behalf and guide you through every step. A REALTOR® understands the local market and must, by law, look after your best interests.

KITCHENER, ON (February 4, 2009)

2009 is off to a good start. The holidays are over and it looks like things are starting to pick up. Buyers are taking advantage of some good deals that are still available on the market and sellers are taking notice. Listings are way up this week.

If you are looking to buy, I would

I trust everyone had a wonderful Christmas and all are continuing to enjoy the holiday season. I know that I’m very thankful for a great year in 2008 and can’t wait to get rolling in 2009!

Whenever I’m out, I always seem to run into

If the cup of coffee you were drinking on Tuesday morning didn’t wake you up, the headline on the front page of the Globe and Mail most surely did.

The headlines screamed “Housing sales hit 20-year low as real estate slump widens” followed by huge sub-head noting an 11 per cent decline in prices and a 44 per cent drop in Ontario housing sales in large RED print, based on the December 15th press release issued by the Canadian Real Estate Association.

The only problem with the article is that it is incorrect. In the third paragraph, the author writes “Between May and November, the average price of an existing home in Canada fell by 11 per cent, matching the drop in 1990 that coincided with the onset of a painful recession. Housing prices would go on to fall about 20 per cent and it would be another decade before they managed to make new highs.“

Unfortunately for the Globe, there was no 20 per cent drop. According to the Canadian Real Estate Association, the Canadian average price actually rose approximately 15 per cent from 1990 to 2000. There were three moderate dips in housing values in the decade

The most common question I