Ajax Pickering Real Estate Blog

Grant Surridge, Financial Post

Sales of existing homes in Canada’s major cities reversed two months of declines in October, clocking in with the largest ever figure for that month, according to a national real estate agents‘ association.

Seasonally adjusted national sales rebounded to 28,966 units in October, climbing 1.3% from the level in September, said the Canadian Real Estate Association on Thursday.

“The thing that surprised me most was the fact the rebound occurred in markets across the country,” said Gregory Klump, chief economist at the Canadian Real Estate Association.

“It just shows the strength of resale housing markets across Canada.”

The average resale price rose 10.6% year-over-year to $333,544, the sixth consecutive month that number climbed over 10%. Average prices hit record levels in Regina, Saskatoon, Toronto and Montreal.

Mr. Klump contrasted the continued positive news emitting from the Canadian housing market with the doom and gloom from south of the border.

“We continue to see sellers’ markets, not buyers’ markets like in the States.”

————————————————————————————————————

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

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.

————————————————————————————————————

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.

————————————————————————————————————

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