A full 56% of Ontarians mistakenly believe that the new Harmonized Sales Tax (HST) applies to the full purchase price of a ReSale Home, according to am Ipsos Reid survey commissioned by the Ontario Real Estate Association (OREA). "We see it on the front lines every day, clearly, Ontarians still do not know what the HST covers and what is exempt", says Dorothy Mason, President of OREA. "This is not helping the housing market, and it's not helping the Ontario economy. This confusion means that many buyers think the cost of a ReSale Home is tens of thousands of dollars higher than it actually is."

OREA is working to create as much awareness as possible among consumers about the reality of the HST and ReSale Homes. For example, a press release sent out following the survey was picked up by many news outlets across the country and reached 5.5 million Canadians - an indication of the level of interest about the issue.

OREA would like the Government to take some responsibility for educating potential Home Buyers as well. "Were doing our part to inform our clients, but we shouldn't have to do it alone. Were calling on the Ontario Government to launch an immediate public awareness campaign to educate taxpayers and end the HST confusion." concluded Dorothy Mason. "For the average homebuyers, learning the HST does not apply to the full purchase price means a $40,000 saving (currently the average price of a home in Ontario is $330,000) they were not expecting."

HST and ReSale Homes - The Facts The HST is only levied on the various transaction fees associated with the purchase of a ReSale Home (NOT a Brand new Home built by a Builder/Developer and never lived in before). Real Estate Commissions are subject to the 13% HST Lawyer's Fees are also subject to the 13% HST The Condominium Status Certificate fee remains at $100.00 but has the HST included in the price. Moving Costs, the cost of a home inspection and even home staging is also subject to the 13% HST The results of the survey were consistent across all age groups.

However, there were some differences across other demographic categories. For instance, of those surveyed half of university graduates, 71% of Northern Ontarians, 59% of those living in Eastern and Southwestern Ontario, and 54% of GTA residents all mistakenly believe the HST applies to the full purchase price of ReSale Homes. This is a whopping statistic that needs widespread coverage to clear the air on the HST, if anyone needs further information on the HST or has any questions, please feel free to email me directly at: info@deborahlsykes.com

From: Deborah L. Sykes, Sales Representative, Sutton Group About-Town Realty Inc., Brokerage

(January 14, 2011 - Hamilton) The REALTORS® Association of Hamilton-Burlington (RAHB) held its annual news conference today, and this year’s President anticipates the real estate market will further stabilize through 2011, with a market that performs much as it did in 2010.

In her inaugural speech, Ann Forbes Arndt, 2011 RAHB President, noted that consumer confidence is a concern for next year. “Although we have seen some signs of recovery with unemployment down and stabilizing,” she said, “economic projections for the year call for cautious optimism with respect to full time job creation.” Employment numbers released in January bode well for the year ahead, she noted. “If we continue to see stabilization in the employment rate, we expect to see confidence in the market, and by mid-year housing sales should be on the rise.”

Arndt predicted that 13,000 residential properties will be sold through RAHB’s Multiple Listing Service® (MLS®) in 2011. Area media were on hand to hear Arndt report that the 2010 real estate market ended with 13,440 sales reported on the association’s Multiple Listing Service® (MLS®) , which can be considered an average number of sale based on sales figures over the last ten years.

The total volume of real estate sales in the area surpassed 4.2 billion dollars, the highest volume recorded in the association’s history as well, which speaks to just how powerful the MLSÒ marketing system is to the real estate industry.

In 2010, 66 per cent of all residential properties listed were sold. The list to sales ratio is an excellent barometer to determine whether it is a buyers’, sellers’ or balanced market. The 2010 list to sales ratio indicates a more balanced market than 2009’s year-end average of 73 per cent.

The average sale price of all property sales was $314,501, again the highest on record. The year was characterized by brisk sales through the first half of the year, fuelled by low interest rates and buyers wanting to avoid the HST beginning July 1, with sales dropping off through the summer months and early fall. Sales rebounded in December to higher-than-average levels.

Moving into 2011, Arndt noted that “one area that will be interesting to watch is the employment numbers for young people. Youth unemployment is still near record highs and this will have an impact on the number of first-time home buyers over the next few years.” Traditionally, first-time buyers drive the housing market, allowing existing homeowners to move up. As a result of low interest rates, a gradually improving economy and no unexpected volatility, 2011 will be stable and looks promising for both buyers and seller.

From: Deborah L. Sykes, Sales Representative, Sutton Group About-Town Realty Inc., Brokerage