Mississauga Real Estate News - Winter 2008

Mississauga and Toronto Real Estate Market Conditions and News

Winter 2008

As we have moved thru the fall, buying activity levels have come to almost a complete stand still. The last 2 quarters are the worst in recent history, seeing sales fall  the last 6 consecutive months in a row.  The controversial land transfer tax has had an impact on Toronto Sales  but so have the woes of the U.S. Mortgage Meltdown.   But the biggest impact on the real estate market across Canada has been  the financial market turmoil, slowing world economic growth and weaker commodity prices ( CREA economist Gregory Klump).   

According to Mr. Porter chief economist at Nesbitt Burns consumer confidence has been battered and home buyers are cautious. We are also seeing an increase in personal bankruptcies and weaker employment numbers says Mr. Porter. Suggestions in the media that  Canada might be in a recession has not helped matters either.  But the biggest declines have been in the Vancouver and Calgary markets.  

Across Canada, existing home sales are expected to fall by 12 per cent this year from the year before says CREA and the decline is expected to moderate to 3 per cent in 2009. But according to some economists like Douglas Porter of Nesbitt Burns, next years price drop could be more severe than what CREA is estimating .

The average value of a resale home is expected to be $297,600 next year, according to the Canadian Real Estate Association.  Just three months ago, it was forecasting the number would reach  $320,200.

BUT THERE IS A SILVER LINING!!!!  
If you have been thinking of upgrading to a bigger home now is a great time to make that move.  Higher priced homes have dropped by the highest % and so the gap between your current home sale price and the  cost to purchase your new home will definitely be smaller.  You may not have to wait that extra year or two to make your dream home purchase a reality!  Why not give me a call to get more details.


TOPIC OF THE SEASON:

Tax Assessments to Rise in 2009!

Ontario residential property taxpayers will see an average assessment increase of five per cent in 2009, the first year of a four-year phase-in plan.

“Residential property values have increased by an average of approximately 20 per cent across Ontario since 2005, when the last assessment update was done,” Carl Isenburg, President and Chief Administrative Officer of the Municipal Property Assessment Corporation (MPAC), said.

With a four-year phase-in, property taxpayers will see an average assessment increase of five per cent next year.

An increase in assessment does not necessarily mean an increase in property taxes. If the assessed value of a home has increased by the same percentage as the average in the municipality, there might be no increase in the property taxes paid by a property taxpayer.

The phase-in program does not apply to decreases in assessed value. The full amount of a decrease will be applied during the 2009 tax year.

“Our values are based on actual sales and trends in real estate markets across the province,” Isenburg said. Municipalities establish tax rates that are applied to assessed values to pay for local services and the Provincial Government sets rates for the education portion of the tax.

Property Assessment notices began arriving in the homes of property taxpayers in mid-September. MPAC expects the mailings to be completed over a ten-week period.

Notices get a new look

The Municipal Property Assessment Corporation (MPAC) has redesigned the 2008 Property Assessment Notice to make it easier to read and understand. This year’s Property Assessment Notice will include:

  • The assessed value of the property for each of the next four tax years;
  • The percentage by which the property has increased or decreased in value since the last assessment update in 2005 and the average percentage by which properties across the municipality have changed in value;
  • A history of past adjustments, if any, made by MPAC through the Request for reconsideration process or the Assessment Review Board to the assessed value of the property and whether these are reflected in the current assessment;
  • Details about the property including lot size, square footage, and year of construction used by MPAC to help determine the assessed value of a property;
  • A User ID and Password that can be used to access About MyProperty™;
  • The address of the nearest MPAC local office where questions can be answered and concerns addressed in person; and The toll-free phone number for MPAC’s Customer Contact Centre;
  • A brochure is mailed with each notice. It explains how property owners can determine if their assessment is accurate and, if they feel it is not, what options are available to have it corrected;

Hours will be extended at each of MPAC’s 33 local offices across the province during the notice mailing period this fall, as was done in 2005. For more information, property taxpayers can also call MPAC’s Customer Contact Centre, which can be reached toll-free at 1-866-296-MPAC (6722).

NOTE: The original document was retrieved from various sources and modified for residential use. Although I endeavour to ensure the accuracy and timeliness of information, it is not guaranteed. Therefore I do not accept any responsibility for any loss arising from any use or reliance on the information contained herein.


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