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

If simple, comfortable, cozy, light-filled and vintage is what you want your home decor to look like, then a cottage style decoration for your home is ideal. Decorating your house in cottage style is the best way to create a cool atmosphere. This style gives a unique and pleasant touch to the house and makes it look extremely beautiful. Here are some classic cottage style decorating ideas for you. Well, even if you are on a tight budget, this theme is perfect as it won't cost you as much as the trendy ones. At the same time this will spice up your home in the best way.

Cottage Style Decorating Ideas on a Budget

Flooring
As mentioned above you need to keep it simple and subtle. Wood flooring is the best for cottage style decor. One of the cottage style decorating ideas is to opt for wood planking or distressing techniques. This will make the new wood look older giving a classic feel to the rooms. If the floor is not wooden, then you can just install a wood style carpet and instantly give a feel of wooden flooring. Place rugs on the floor to compliment the cottage style and have a perfect floor space ready. Using oriental rugs and throws will give a warm look to the space. You can also have these in the passages.

Color Combination
Try to add as much as white as you can for the walls. If you don't want that chalk white effect, go for soft tones like light blues, pale yellow, soft green, faint cream shades. One of the wall design ideas is to have vintage prints to grace them. Use soft tones for the walls. To create a dramatic effect, you can opt for accessories in a tone deeper than that of the wall color. For cream walls, you can have dark brown area rugs or throw pillows.

Furnishing
Fresh colors and soft fabrics are the primary element of cottage style furnishings. One of the cottage style decorating ideas is to have mixed styles and patterns in the furnishings. Decide a dominant color and few other colors that will go well this. Lemon yellow, aqua blue, soft green, creamy shades, berry red and browns are best for this style. Of course making sure that the selected colors have a tinge of it in the furniture will be great. Adding frilly, laced valences and drapes in floral prints are lovely cottage style decorating ideas. Laced table cloths will look extremely pretty and perfectly suit this style. Semi-transparent curtains allowing maximum light to enter the rooms is best for having natural illumination. Here are some cottage decorating ideas.

Furniture
Cottage style decoration is all about handmade and simple items used to enhance the beauty of an area. Go for wooden furniture with simple polishing. Do not go for colorful laminates. Try to keep things simple and maintain the natural look. Pine furniture or wicker furniture plays an important role in highlighting the cottage style. Chairs, side table, center table and stools made of wicker are best ones to get into your home and patio.

If your living and dining area is within the same boundaries, you can opt for wicker room dividers. These will create the privacy element for the dining area and mainly compliment the cottage theme. One of the cottage style decorating ideas is to get in some vintage furniture to enhance the home decor. You can also work on your old shelves and cabinets and add up to the beauty of your house. Just redo the existing furniture by polishing or use distressing furniture techniques and save the expenses of buying a new one.

With the aforementioned cottage style decorating ideas, you can add some handmade accessories to give a finishing touch. Use wicker baskets in the kitchen and as table centerpieces. You can also use these for hanging plants. Go for hand woven rugs, hand-painted table cloths and pillows. Fresh flowers and wooden wall hangings are the best pieces to deck up the cottage style home decor. So this way you can welcome guests to a calm and gratifying place.
Source: www.buzzle.com

The market is always changing. However like always both buyers and sellers must be realistic to make a deal work. It takes more coordination and work now than ever to bring a deal to closing. Pricing correctly is just the first step of getting your ducks in a row to sell.

I always get asked by new agents, what do I face on a listing presentation. What should they expect? I expect objections, alot of objections. As a professional you have to be prepared to handle those objections and lead your seller's to the correct information.

The most common objection is about the list price. My job is to educate them about the current market trend and to get them the most money in the shortest amount of time so that they can move on. Overpricing does not work in any market condition.

Padding in room for negotiations, is still overpriced. If 2 department stores are selling the same item but one store has it on sale for $25 less, who would you buy from? Everybody likes a deal.

If you answered you would rather pay more, I have some sellers who would like to meet you. Have you ever seen a business advertise an "Overpriced Merchandise Sale"? Exactly my point.

A client wanted to list for $20,000 more than I advised. Why? To allow room for negotiation, so they could negotiate down $20,000 from the asking price. Once again back to the department store. If something is overpriced, do you buy it or ignore it? If something is a bargain, you always stop to look (and ladies especially if you dont get it for yourself, you start to think of anyone else you know to get it for).

When determining the price of a home, alot of factors must be considered. A local Realtor is a specialist, not Trulia, not Zillow, but a live professional who can visit your home and neighborhood to give you a real evaluation.

Pricing the home right the first time saves fustration, money, and time. What happens if you miss the most active months of buyer activity, how much more did that cost you in mortgage payments because you wanted room to negotiate down?

Buyers are assisted by Realtors who inform them of the market conditions and prices. If it is priced to sell, an agent will tell their buyer it's a good opportunity and there may be other buyers interested as well. Consumers know a good price when they see it too. Im not saying everything has to be a steal, it needs to be priced right according to the local market.

Some men in a pickup truck drove to a lumber yard. One of the men walked into the office and said, “We need some four-by-twos.”
The clerk asked, “You mean two-by-fours, don’t you?”
The man said, “I’ll go check,” and went back to the truck. He returned shortly and said, “Yeah, I meant two- by-fours.”
“All right. How long do you need them?”
The customer paused for a moment and said, “I’d better go check.” After a while, he returned to the office and said, “A long time… we’re gonna build a house!”

Higher gas prices and an uncertain economic outlook means cottage country is becoming further out of reach for some buyers - even as prices soften for some Canadian recreational properties. After a decade of substantial price increases, a significant jump in listings on the market and fewer buyers have resulted in starting prices that have started to decline in some areas, according to a report by ReMax Ontario Atlantic Canada released today.
Of 45 Canadian markets surveyed, ReMax says 67 per cent reported falling sales.
While most markets saw prices remain flat or increase slightly, some areas are starting to see decreases for the first time. Starting prices in popular Ontario towns such as Haliburton, Bancroft and Parry Sound were down from 10 to 20 per cent, according to ReMax.
In Haliburton, a starter waterfront cottage can be bought for $275,000, down from $350,000 last year. In Parry Sound, a similar cottage can be purchased for $180,000, down from $200,000.
“It’s been a sluggish market. I think given the economic conditions you have to have your head in the sand if you don’t acknowledge that there’s a correction around the corner,” says Muskoka-based realtor Anita Latner.
With the Ontario economy slipping into what may be a technical recession as the manufacturing sector takes a major hit from layoffs and downsizing, discretionary purchases such as vacation homes are typically the first to go.

Source:www.gtawatch.com

Professional appraisers sum up their entire body of knowledge in three words: " Buyers make value." Your home is worth as much as a buyer will pay for it.
If your home has been on the market for months, it’s a clear message that the property may not be worth what you're asking for it. This is particularly true if there haven't been many prospects coming to see it. What you do at that point depends on whether you really need to sell, and whether you're working with a time limit.
If you're not really motivated to move soon, you can always wait - years if necessary - and hope inflation will catch up with the price you want. The problem is that in that time, your home begins to feel shopworn. Buyers become suspicious of a house that's been for sale for a long time.
If you really do need to sell, with your REALTOR® discuss a schedule for gradually dropping your price until you find a level that attracts buyers. There's no point in saying, " We simply can't sell our house." Anything will sell if the price is right.
Source: www.valleyreadvisor.com

The number of homes sold through the MLS@ System of the Parry Sound Real Estate Board was up considerably on a year-over-year basis in June 2010.
According to statistics provided by the Board, residential sales numbered 57 units in June 2010, 30 per cent above levels reported in the same month last year.
"June was a good month for home sales, but the large year-over-year gain largely reflects the weak showing last June," said Shirlene Johnston, President of the Parry Sound Real Estate Board. "Looking ahead to the second half of 2010, sales activity has been widely forecast to soften as the HST and rising interest rates impact affordability."
The number of new residential listings on the Board's MLS@ System rose 27 per cent from year-ago levels to 147 units In June. While new supply stands well above levels reported last year, it has actually been trending lower in, recent months. Active residential listings numbered 705 units at the end of June, up 19 per cent from a year earlier.
There were 12.4 months of inventory at the end of June 2010, down from one year earlier (13.5 months). 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.

Should I add on or buy a bigger home?
Consider these questions before making a choice between adding on to an existing home or moving up in the market to a bigger house:
How much money is available, either from cash reserves or through a home improvement loan, to remodel the current house?
How much additional space is required? Would the foundation support a second floor or does the lot have room to expand on the ground level?
What do local zoning and building ordinances permit?
How much equity already exists in the property?
* Are there affordable properties for sale that would satisfy housing needs?


How do I prepare the house for sale?
First and foremost, put it in the best condition possible, especially if you are in a market with few buyers and lots of homes for sale. That means taking care of any major repairs that could deter a buyer (such as replacing any broken windows or replacing a leaky roof) if you can afford it. Next, work on your home's curb appeal. Make sure your landscape is pristine. Mow the grass, clean up any debris and weed the garden beds. Plant a few annual flowers near the entrance or in pots to be placed by the door. Other quick fixes that don't cost a lot of money but can help you get top dollar for your home:

Source: remaxprimerealestate.com

INTEREST-RATE INCREASE FOR JULY NOT NECESSARILY A SURE BET The Governor of the Bank of Canada has reasserted to Canadian banks and businesses that an interest-rate increase in not necessarily in cards, even though there has been speculation that the Bank will raise the rate inJuly.

The Governor of the Bank of Canada has reasserted to Canadian banks and businesses that an interest-rate increase in not necessarily in cards, even though there has been speculation that the Bank will raise the rate inJuly.

During a speech in Charlottetown, Mark Carney said that because of the uncertainty remaining in the global economy, and as governments prepare to take more austerity measures to deal with public debt, the Bank has not set out a definite plan regarding an interest-rate increase.

“In light of the scale and volatility of these conflicting forces, it should be evident that no particular path for monetary policy is preordained,” Carney said Wednesday.

Early this month, the Bank raised its key interest rate by 25 basis points, after Canada experienced more growth than expected.
SOURCE:www.canadianrealestatemagazine.ca

U.S.-Style Home Price Correction Unlikely in Canada


The Canadian Real Estate Association (CREA) released a new report today indicating that home prices will stabilize, and will remain stable for some time. This means that Canadian homeowners are unlikely to experience a U.S.-style decline in the value of their homes.



“The relationship between average price and income has recently been cited as portending a U.S.-style correction in Canadian home prices,” said Gregory Klump, Chief Economist, CREA. “However, such warnings ignore the longer-term relationship between prices and income, and disregard typical Canadian housing market cycle dynamics.”



Home prices tend to rise in cycles, characterized by periods of sharp growth and periods of stability. By contrast, income generally follows an orderly upward trend over time. For home prices to keep pace with incomes, they must rise faster during housing booms to make up for periods of little or no price growth. Canadian home prices were stagnant throughout most of the 1990s, while incomes continued rising, making housing more affordable. Over the past decade, home prices have climbed sharply as mortgage interest rates declined.



Klump adds: “The Canadian housing market is now widely thought to be at, or very near, the top of a cycle, and the ratio of home prices to incomes is currently high. This ratio will revert to its long-term average as it always does as part of a normal housing market cycle. History suggests, however, that it will not do so by means of a significant correction in home prices. The more likely scenario is that home prices will stabilize, giving incomes a chance to catch up again.”



The bursting of the U.S. housing market bubble has sparked fears that Canadian home prices may share a similar fate. However, according to Klump, “warnings to this effect ignore solid Canadian mortgage market trends.”



Conservative lending practices in the mortgage industry combined with prudent borrowing and accelerated payments among Canadian mortgage holders have been seen throughout the recent housing market cycle. Accelerated accumulation of home equity will provide options for the small proportion of homeowners who may face financial difficulty when their mortgage is renewed at a higher interest rate. These trends are expected to help Canada avoid a U.S.-style housing crisis.



The correction in U.S. home prices is set against a massive oversupply of homes due to distress sales, combined with a drop in housing demand due to unemployment. The unwinding of the housing boom in Canada will be more orderly, characterized by softening sales activity and stable prices.

Home sales very strong in April

The number of homes sold through the MLS® System of the Parry Sound Real Estate Board was up considerably from year-ago levels in April 2010 Meanwhile, new listings set a record for the month.

According to statistics provided by the Board, home sales numbered 50 units in April 2010, 43 per cent above levels reported in the same month in 2009. This is the highest level from April sales activity in six years, and the third best ever.

“Home sales came in very strong in April,” said Shirlene Johnston, President of the Parry Sound Real Estate Board. “It is likely that some future demand is being pulled forward by buyers motivated to finalize purchases in advance of interest rate hikes and the introduction of the HST.”

Both new and active listings posted records for the month of April in 2010. The number of new residential listings on the Board’s MLS® System rose 25 per cent from year-ago levels to 147 units, the fourth consecutive increase. Active residential listings numbered 632 units at the end of April, up 17 per cent on a year-over-year basis.

The residential average price of homes sold through the MLS® System of the Parry Sound Real Estate Board was $269,668 in April 2010. This is up 22 per cent from year-ago levels.

The dollar value of all home sales in April 2010 amounted to $13.5 million, up 74 per cent on a year-over-year basis. This is the highest dollar volume on record for the month of April.

There were 12.6 months of inventory at the end of April 2010, down from one year earlier (15.4 months) and the lowest level since October 2009. 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 over 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.

7 Tips To Lower Home Construction Costs…
1. Contact Local Builders: talk with several custom builders in the geographical area in which you plan to build to get a rough idea of what it may cost to build your house. Builders can give you a range of costs with the associated quality/features. If you are serious about building and feel comfortable with a particular builder, consider having the builder work up some more detailed plans and an estimate of costs as part of a design-build process.

2. Start With Plan The Builder Has Used Before: It may be to your advantage to start with a plan that the builder has used before and "customize" it to suit your objectives. The builder already knows how much it cost to build and what it took to build that particular model.

3.Standardize The Size of Home: When building a home, it's best to work with even numbers. Have your home size rounded up or down to increments of two feet. This reduces wasted materials. Also, it's most economical to build a home which is no deeper than 32 feet. If the depth exceeds 32 feet, then your roof trusses may need to be specially designed and will be more expensive.

4. Some Features Cost More: The most expensive areas in a home are usually the bathrooms and kitchen. The number of windows and the size and quality of windows can also affect the cost. Vaulted ceilings and high roof pitches can increase the cost of a home. When using other homes to calculate an estimate, be sure the home has a similar style and features of the home you plan to build.

5.Shape of Home: Homes that have a rectangular or box shape cost less to build. Having more angles and corners in the shape of your home can increase the amount of labour and materials needed to build a home. Dome shaped homes also make efficient use of materials and tend to cost less than other shapes.

6.Chose A Relatively Flat Lot: Preparing a site for construction can have a big impact on the cost of a home. Building on a flat lot will usually cost less. If you have to haul in lots of dirt, do a lot of grading, clear trees, or blast through large rocks, then site preparations can become more expensive.

7.Careful Planning: Usually the finished cost of a home is more then the original bid price. Cost overruns occur from overspending the allowances, making changes and encountering unforeseen problems. Proper planning can greatly reduce cost overruns. Builders love change orders and it is so critical that you have as few of these as possible which means that your specifications must be as detailed as possible. In general, it is a good idea to allow an additional 10% to cover unexpected costs.

SOURCE: www.ontario-home-builder.com