Mississauga Real Estate News - Fall 2009

Mississauga and Toronto Real Estate Market Conditions and News

Fall 2009

The summer market was unbelievable.  There has never been on like it in recent years.  Prices are back up to last years highs and in some areas even higher. July and August conintuued to have increased sales month over month. The market is continuing on an upward path and multiple offers seem to be the norm.  As we head into the fall and winter months the market forecast should continue to stay strong. 

In the first two weeks of September, the Greater Toronto Realtors reported 3,361 sales.  That is up 23 per cent compared to the first two weeks of September 2008.   The average price for these transactions was up eight (8) per cent year-over-year to $393,818.   With an increasing number of positive reports pointing to an economic recovery and coupled with low interest rates buyers are staying confident in purchaging a home. The new proposed harmonized  tax may also be spurring more buyers to the the market. 

We are definitely back into a sellers market.  This is a great time to list your home for sale.  There are more buyers than listings which has spurred prices upwards.  There is certainly also is a good incentive for sellers to sell before the new proposed harmonized tax is implemented.
 

TOPIC OF THE SEASON:

Ontario Moves Forward With Tax harmonization

Even though there is stiff opposition, it appears Ontario is moving forward with a plan to harmonize its Provinicial Sales Tax (PST) and Federal Goods and Services Tax (GST) next year sometime (1010).  That would see a system charging a combined 13% tax (8%Provincial Sales Tax  5% Federal Sales Tax). 

How does this affect an average family?  A basket of goods, which today would cost $93.09 would cost $100.18 under the new plan. 

On a $350,000 new home (from a builder), the consumer would have to pay an additional $17,920 in tax.

As a seller, many services that are exempt today such as legal fees, real estate commission, renovation services, land survey reports, home inspections, landscaping and house cleaning services would now be affected and could be paying 13%  instead of 5%. 

Assuming no change in the provincial sales tax rates, the seller of a a $350,000 resale home would get hit with an additional $1,400 in tax on a real estate agent's 5% commission, plus a new 8 per cent provincial tax on moving expenses, legal fees, accounting , bookkeeping fees, renovations, painting and other services which are currently exempt.  


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Cynthia Shaw, Sales Representative - Selling Mississauga's Finest Homes - 905-822-5000 Contact Cynthia Shaw