NEW LISTINGS!

  495 Main Street               900 YONGE ST                  

  $629,000                           $495,000                          

 Schomberg                         Toronto          

UPDATE from TREB's President

April 17, 2008 - The Greater Toronto Area resale housing market saw 3,955 homes change hands in the first half of April, down 5 % from the same time period last year, Toronto Real Estate Board President Maureen O'Neill announced today.

In the City of Toronto sales are down 11 per cent compared to a year ago, with 1,514 transactions taking place. In the 905 suburbs, sales are down just over 1 per cent to 2,441 for mid-month April 2008 from 2,477 sales mid-month April 2007.

Throughout the GTA prices have risen seven per cent compared to same timeframe last year, to an average of $399,117. In the City of Toronto the average stands at $454,211 up 10 per cent over mid-April 2007. The 905 Region has seen a six per cent increase compared to a year ago , with a current average price of $364,939.

The number of listings on the market is one per cent greater than last year with current inventory sitting at 22,985. This indicates that inventory is on the rise. The positive news is homeowners are selling their homes with an average of 28 days on market compared to 30 days a year ago. The slight increase in inventory levels and house prices are encouraging factors.

"We're seeing sellers achieve on average 99 per cent of their asking price, which is one per cent higher than a year ago," said Ms. O'Neill. "April's numbers point to a stable, healthy market for the Greater Toronto Area this spring. However, TREB still remains wary of the Land Transfer Tax in Toronto."

TAX RELIEF January 2008 

Ontario Expands Land Transfer Tax Refund

First time buyers of resale homes are now eligible for a refund from the provincial government of up to two thousand dollars of the land transfer tax paid. In December, Ontario announced that effective immediately, the existing land transfer tax refund program would be expanded to include first time  buyers who purchase resale, as well as new homes.

GST cut good for new homebuyers and homeowners

The tax changes outlined in the federal government's economic statement will bring significant savings to new homebuyers, but also benefit existing homeowners. Buyers who purchased after May 2, 2006 but on or before October 30, 2007, will pay six per cent GST, but get a one per cent transitional rebate (less GST new housing rebate adjustment) as long as ownership and possession are transferred after January 1, 2008.

Homebuyers who purchased on or before the previous GST rate cut from seven per cent to six per cent (May 2, 2006) will have to pay the seven per cent GST, but will get a two per cent transitional rebate (less GST new housing rebate adjustment) from Ottawa, again providing ownership and possession are transferred after January 1, 2008.

 The new one per cent reduction will also help existing homeowners to pay for home renovations, new appliances or furniture.

No Sub-prime lending market 

 Unlike the U.S., the Canadian housing market has not been artificially driven by bad lending practices. All mortgages in Canada are insured which is not the case in the U.S.

Exerpted from OREA Edge News January 2008

For more information on how these issues may impact your real estate needs, please contact    Inga Toi at info@wideworldproperties.com