Ajax Pickering Real Estate Blog

Saskatoon, Regina prices up 50%

CBC News

Canada’s real estate scene is showing no sign of the weakness sweeping through the U.S. market, as sales and prices continue to rise.

The average resale price in 24 major markets jumped $5,000 from September to October, to $333,544, according to figures from the Canadian Real Estate Association.

That’s a rise of 10.6% from last October — the sixth month in a row of double-digit year-over-year price gains.

The country’s priciest real estate continued to be found in Vancouver, where the average resale price jumped $8,000 from September to reach $590,577 in October — up 7.8% from a year earlier.

Alberta’s cities used to post the biggest percentage price gains. But recently, it’s been Saskatchewan that’s been doing the booming.

Saskatoon’s average resale home sold for $255,614 in October — up a whopping 53.3% from October 2006. Regina’s increase was just behind — up 50.3% to $190,657.

Average resale prices hit record highs in the two Saskatchewan cities, as well as in Montreal and Toronto.

Toronto’s average price jumped $14,000 in a month to $394,583. A similar price rise took place in the Hamilton-Burlington, Ont. region.

Prices in every market except Windsor were up over last year. Windsor’s real estate market remains weak, with prices down four per cent year-over-year.

On a seasonally adjusted basis, sales rose 1.3% from September’s level, with more than half the markets reporting an increase in activity.

“Negotiations still favour the seller in nearly all major markets,” the Canadian Real Estate Association’s chief economist Gregory Klump said in a release. “This suggests resale housing demand remains on a strong footing, and that price increases will continue to exceed overall consumer price inflation.”

The Canadian Real Estate Association forecasts that average prices in 2008 will set new records in every province, despite a slowdown in sales activity.

The Canadian Real Estate Association’s figures are based on sales through the Multiple Listing Service system.

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Contact the Jeffrey Team for more information - 416-388-1960

Land Transfer Tax

This is a provincial tax levied when title to land is transferred. It is payable by the purchaser upon the registration of every transfer of land. (i.e. on closing day). The calculation of this tax on a single family is as follows:

Amounts up to and including $ 55,000.00 - 0.5%
Amounts exceeding $55,000.00 up to and including $250,000.00 - 1.0%
Amounts exceeding $250,000.00 up to and including $400,000.00 - 1.5%
Amounts exceeding $400,000.00 and up - 2.0%

Legal Fees

A lawyer will charge a fee for his/her service plus pass on to the client all costs that are incurred in the process. A partial list of these items is as follows:
- Title Insurance (if required)
- Registering the transfer & Mortgage
- Obtaining tax certificate
- Obtaining utility arrears certificates
- Obtaining estoppel certificate (Condo)
- Obtaining sheriff’s certificate
- Managing closing day
- Courier, photocopying etc.

Home Insurance

Lenders will require that the home is protected against perils, such as fire, before the mortgage loan is advanced.

Moving Costs

Depending on whether you move yourself or hire a company, the cost may vary. Right At Home Realty has arranged with AMJ Campbell “The Ultimate Service Moving Program”:
- Hand picked Crews
- Free Wardrobe Service
- 15% off hourly rates
- 25% off packing and unpacking rates
- Hassle free & Worry free move with full nation wide support
- Canada largest coast to coast moving company
- Free written, no obligation estimates

Home Inspection

A professional home inspector may be employed by either the seller, prior to marketing the home for sale, or the buyer, prior to firming up the offer. An inspection is done to ensure that no major deficiencies exist at the time of selling or buying.

Adjustments

The funds required to complete the transaction will include adjustments for prepaid expenses. For example, if a vendor had paid the property taxes for the entire year, the new purchaser would owe the vendor that prepayment. Other such adjustments are as follows:
- Property taxes
- Utility bills
- Condominium fees
- Interest adjustments
- Any other cost which the vendor has paid for which the purchaser will benefit

Another way to explain, is to simply say that the Purchaser pays for all expenses of the home starting from (and including) the day of closing.

Federal and Provincial Taxes

Typically resale homes are exempt from GST. Taxes may be payable on the many services listed on this page. A new home is not exempt from GST and may be paid by the builder or buyer, depending on what is negotiated at the time of purchase.

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Contact the Jeffrey Team for more information - 416-388-1960

Does the idea of buying a home seems overwhelming to you? Do you always ask yourself questions like; How much can I afford? How can I find the best loan? Should I buy a new or a resale home? Should I use a real estate agent or look at homes on my own? and many others questions?

We agree, buying real estate is one of the major decisions that you will make in life and is one of the largest financial transactions in your lifetime. But, don’t worry, although there is much to consider when buying a home, if you do your research and approach the home buying process with confidence, you will most likely buy a house that you will be proud to call home.

Below are the three most important things to remember no matter where you are on the road to home ownership. If you follow them closely, you will be happy with the end result!

1. Understand the home buying process.

When buying a home, there is nothing that is complex that can’t be easily explained to anyone. If you don’t apply for a thirty year mortgage once a week, don’t take the first one that comes along. You’ll need to do your research, learn some new terms, apply some new concepts, and take the time to understand the entire process. If something happens at any point that you don’t understand, simply demand a full and complete explanation from someone you trust like your real estate agent, CPA or your lawyer.

2. Become the important person in the process.

In the world of real estate sales, YOU are the most important person in the home buying process. It’s easy to think that everyone else carries more weight than you but that’s not the reality. The seller owns the house and has all the money and the real estate agent tries to sell the house for the seller. However, you, the buyer, are the one person in the transaction that makes it all happen. This entire process could come to a stop if you decide to not buy. So why not take command of this process?

3. Surround yourself with a team of professionals that you trust and make them work for you.

Good real estate agents, mortgage specialists and property lawyers are some people that you can count on to help you. They all  save you time and money. They know your community, they know what is important when buying and selling a home, and they know all the intricacies of the process, from finding a home, to negotiating a price, to closing a deal and to ensureing the paperwork is done right.

As you can see, if you approach the home buying with intelligence and confidence, you are more likely to buy a house you’re happy with and know that you made the right decision. When you start to walk down this road, take charge from the first step and be in the pilot seat to ensure you satisfaction. Remember, YOU are the most important person in this process!

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Contact the Jeffrey Team for more information - 416-388-1960