October sales activity remains strong
Sales kept pace with September with 297 sales compared to 304. The average sales price for a detached 2 storey home was up 4% to 767,000. Twice as many homes sold above a million since last month, with 17 sales. October 2008 had 5 sales over a million. And twice as many homes sold between $500,000 and a million over October 2008 with 118 sales during the month.
44 bungalows sold in October compared to 21 sales in October 2008. Of these, 3 were bungalow lofts and 5 were raised bungalows. The average sale price was $487,000. One of the sales went just over the 2 million dollar mark and if you back that sale out, the average would be $450,000.
The rental market was also up with 71 sales versus September's 63 sales. October 2008 had 58 rental sales.
Longer term mortgage money has gone up slightly. 5 year money is now available at 4.25%. Variable rate money is 2.25%. These are still very attractive rates.
Owners planning to sell next year may want to do so early in the year to avoid paying the increase tax on real estate sales commissions (HST) that is purposed to take effect on July 1, 2010. The harmonized sales tax will be 13% up from the current 5% GST. You can avoid the extra 8% by closing on or before June 30, 2010.
1 comment:
The HST will mean better jobs and will allow more people to realize the dream of home ownership.
A recent report by the TD Bank estimates the HST will reduce cost of doing business in Ontario by roughly $5.3 billion and that the majority of cost savings will be passed on immediately to consumers.
As a result of moving from two taxes to one, businesses across Ontario will save $500 million in paperwork costs. Realtors will receive tax credits for the things they need to run their business from vehicles to computers. As in other industries, realtors will be able to pass on savings to their customers.
Realtor have to ask themselves, are they going to hoard massive profits or be fair to their customers. We ask consumers will have to watch this too and chose our representative accordingly.
Prices will go up on some items. That’s why there is permanent income tax cuts for 93% of Ontarians.
Some people out there want to deceive the public into believing that this is a new tax on everything. This is absolutely false. In fact, the vast majority of items, about 80%, will see no change.
This is being done to create jobs. As the TD report stated, the HST “should help spur business investment, employment and income growth.”
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