Canada GTA new home sales in February best since 2006

[OntarioVanMan]

March 22, 2010

Tony Wong
BUSINESS REPORTER

Sales of new houses and condominiums in the Greater Toronto Area were up by more than 237 per cent in February compared with last year according to figures released today.

The 3,148 new homes sold represented the highest levels since 2006, according to RealNet Canada Inc.

“The new home market continues to benefit from the tight conditions in the resale market, 50-year low interest rates and healthy levels of consumer confidence in real estate,” said the Toronto-based Building, Industry, & Land Development Association.

However, February of 2009 was a recessionary year, with the figures representing the bottom of the market. Compared with 2008, February sales were still respectable, up 24 per cent, while it was up 19 per cent compared with 2007.

February sales were virtually split between low rise and high rise, with 51 per cent of buyers opting for detached or town homes, while 49 per cent chose condominiums

 

[Lawrence]

This is very interesting. My sister lives in Alberta and they didn't experience any kind of down-turn.

 

[OntarioVanMan]

This is very interesting. My sister lives in Alberta and they didn't experience any kind of down-turn.

Neither did my son..he lives in the Edmonton area...

 

[pjjjjj]

I don't like to be a doomsayer, but apparently the implementation of HST on July 1st in Ontario is expected to create a flurry of activity in the months leading up to it as buyers and sellers scurry to save the 13% on everything that now has only a 5% tax, including realty, legal, inspection, etc. fees.
From where I'm sitting day to day, I'm not really hearing a lot of positive coming from real live business people. Seems to forge ahead and slow right down again.
Oh well, at least spring is coming!

 

[FIS53]

Exactly right pj the coming HST implementation which will add 8% to the costs involved in a new house purchase is reflected in the continued housing sales in Ontario. Once this new taxation level comes in the sales should slow down and of course by that time interest rates will be on the increase further decreasing sales in the housing market.

Anyone saying that Alberta has not suffered in this downturn is crazy as it has slowed out there and in fact the boom of a few years ago has gone. Where houses for sale did not exist in Alberta back then they now exist and in fact pricing out there has dropped along with many job losses. Yes it seems to have stopped sliding down and the job market is steady there are not any new jobs to really speak of. The only good part is oil prices are high so Alberta will continue to be financially stable.

The cdn market is in better shape than a lot of countries but credit is harder to get and our costs of doing business have increased.
Rob

 

[OntarioVanMan]

I read about the HST coming into effect and how it is making people jump earlier before the price increases....but the RHOP credit should help offset some of that a bit...
Remember when the GST came in and ALL things were taxed?

 

[FIS53]

The offset by any rebate etc will not offset the added costs of HST. The HST will apply to all the costs of a new house purchase including lawyers fees, registration, house inspections and real estate fees. So this extra 8% is a huge cost increase in any house purchase. If the building is a business purchase then you might be able to claim back some of the added HST expense but otherwise the average Joe just buying a home will be hit hard. Also the HST is adding 8% to home heating, electricity, water/sewage and any other thing you can think of, as well as delivery costs for furniture, appliances and anything else. I think I should pass this method of taxation along to your President to aid in paying for the new laws he is passing down there.
Rob

 

[OntarioVanMan]

The offset by any rebate etc will not offset the added costs of HST. The HST will apply to all the costs of a new house purchase including lawyers fees, registration, house inspections and real estate fees. So this extra 8% is a huge cost increase in any house purchase. If the building is a business purchase then you might be able to claim back some of the added HST expense but otherwise the average Joe just buying a home will be hit hard. Also the HST is adding 8% to home heating, electricity, water/sewage and any other thing you can think of, as well as delivery costs for furniture, appliances and anything else. I think I should pass this method of taxation along to your President to aid in paying for the new laws he is passing down there.
Rob

Hey NOT my President.......I am still a Canuck!!

But I remember the stink when the GST then set at 7% now I hear it is 5% that everyone wanted till we got it...
Voters wanted to "see" the tax on their purchases instead of the old manufacturers tax of 13%...What a surprise we got.

We got over that in time...

 

[FIS53]

A sales tax is far more fairly distributed throughout society than any other form of taxation as those who buy large toys and other goodies are subjected to paying more tax. Those who can afford less purchases pay less. Having things like food staples being tax exempt really makes sense and has proven to be a reasonable idea. Yes the GST was placed on a lot more items than the old FST. The FST a applicable to only manufactured goods and printing. The tax was hidden from many retailers as they never saw it except when buying printed materials for their businesses. The 13% therefore was paid by the distributors and not the end user so it was quite hidden from the general public. Used to hit some people hard when they bought cards or such and went for the lowest quote as that quote was tax out and some of the higher quotes were tax in.
So now we face the HST which means a lot of items that were PST exempt like gasoline and home heating oil and such are now taxable and we'll all contribute to the provincial debt a bit more than we were.
Rob