The Hintze Team Blog

56% mistakenly believe HST applies to purchase price

Toronto, Ontario, October 27, 2010 – An Ipsos Reid survey commissioned by the Ontario Real Estate Association (OREA) and released today reveals that fully 56 percent of Ontarians mistakenly believe that the new Harmonized Sales Tax (HST) applies to the full purchase price of a resale home. In fact the HST is only levied on the various transaction fees associated with the purchase of a home that has been previously occupied (i.e. not a newly-built home).

Currently, the average price of an Ontario resale home is around $330,000. Therefore, this confusion leaves the majority of Ontarians wrongly believing that the HST will add more than $40,000 to the transaction cost. There is growing concern among real estate professionals that this misperception about the HST is dampening the Ontario housing market.

“We see it on the front lines every day. Clearly, Ontarians still don’t know what the HST covers and what is exempt,” noted 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.”

The results of the survey conducted earlier this month were consistent across all age groups. However, there were some differences across other demographic categories. For instance, of those surveyed half of the university graduates, 71 percent of northern Ontarians, 59 percent of those living in eastern and southwestern Ontario, and 54 percent of GTA residents all mistakenly believe the HST applies to the full purchase price of resale homes.

“We’re doing our part to inform our clients, but we shouldn’t have to do it alone. We’re calling on the Ontario government to launch an immediate public awareness campaign to educate taxpayers and end the HST confusion,” concluded Dorothy Mason. “For average homebuyers, learning that the HST does not apply to the full purchase price means a $40,000 saving they weren’t expecting.”

Ipsos Reid conducted the survey among 830 Ontarians from Ipsos’s online panel, between October 4th and 11th, on behalf of the Ontario Real Estate Association. The estimated margin of error is +/-3.8 percentage points, 19 times out of 20.

The Ontario Real Estate Association represents 49,000 brokers and salespeople who are members of the 42 real estate boards throughout the province. OREA serves its REALTOR® members through a wide variety of professional publications, educational programs, advocacy, and other services.

McGarvey wins Parry Sound mayoral race

PARRY SOUND – Long-time councillor Jamie McGarvey won the mayor's seat over challenger Perry Harris.
Late-night results put McGarvey ahead with 1,419 votes over 1,083 for Harris. Joining McGarvey on council will be incumbent Paul Borneman with 1,758 votes, incumbent Bonnie Keith with 1,611 votes, newcomer Brad Horne with 1,431, newcomer Keith Saulnier with 1,428, newcomer Dave Williams with 1,301 and incumbent Dan McCauley with 1,175.
Incumbent Wilf Sabourin lost his seat with 965 votes. Wendal Fisher lost with 855, followed by Dennis Brownley with 686 and Ryan McKinnon with 398.
Source: www.cottagecountrynow.ca

The number of homes sold through the MLS® System of the Parry Sound Real Estate Board in September 2010 came in well below last year’s record for the month, but edged up on a seasonally adjusted month-over-month basis for the second consecutive month.


According to statistics provided by the Board, residential sales numbered 39 units in September 2010. This is 34 per cent below the record September last year, but stands on par with September levels in the previous three years. Seasonally adjusted sales rose three per cent on a month-over-month basis, following a similar sized gain in August.


“The market is stabilizing, but year-over-year comparisons continue to reflect last year’s volatility,” said Shirlene Johnston, President of the Parry Sound Real Estate Board.


The number of new residential listings on the Board’s MLS® System was up 17 per cent from year-ago levels to 11 units in September. Active residential listings numbered 614 units at the end of September, up 13 per cent from the same month last year.


There were 15.7 months of inventory at the end of August 2010, up from 9.2 months at the same time last year, but still slightly below 2008 levels. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.


The Parry Sound Real Estate Board is committed to a high standard of business practice, strong business ethics, and continuing education development that assists REALTORS® in effectively serving the real estate needs of the community. With approximately 100 Members, its REALTORS® service a large geographical area, extending from the French River to the north, southerly to Go Home Lake Road, easterly to the Highway 11 corridor, and westerly which includes the shores of Georgian Bay.

PARRY SOUND - The need has never been greater and it’s never been easier to make a difference to those less fortunate in Parry Sound.
From Oct. 4 to 15 the Parry Sound North Star, the Parry Sound branch of TD Canada Trust, Bell Aliant and the Salvation Army will be collecting clean and gently used new coats and jackets as part of the One Warm Coat community coat drive. Coats of all shapes and sizes are needed and welcome. One Warm Coat is dedicated to distributing reusable coats, free of charge, directly to local children and adults. The program is an easy way for anyone to pass along coats and jackets that they no longer need.
Coats and jackets can be dropped off at the following locations: Parry Sound Branch of TD Canada Trust, the Parry Sound North Star office, Dentistry on the Bay, HART Department Store and Wal-Mart.
“More people than ever need help these days,” said Salvation Army captain Peter van Duinen. “I am proud of the local businesses and partner whose creativity and generosity are making a real difference.”
For more information on the program contact captain Peter van Duinen with the Salvation Army at 746-5391 ext. 222.

Source: www.cottagecountrynow.ca