The spring market has proven to be very strong. March, April and May had increased sales month over month. The market is still going strong and we are starting to see a resergence of multiple offers. As we head into the summer months the market will cool down somewhat but that is normal for the months of July and August. Children are out of school and families are focussed on summer vacations in during these months.
The poll found that 30 per cent of Ontarians said they were likely to purchase a home within the next two years, up from 21 per cent in 2008. Given current housing prices and economic conditions, most Ontarians (54 per cent) believe it makes more sense to buy now, rather than wait until next year. "With mortgage rates and housing prices looking more favourable than they did last year, many Ontarians are saying now is the time to buy," said Doug Crowe, vice-president, Mortgages, Greater Toronto Area, RBC. "Our survey also showed that an overwhelming majority of Ontarians still feel confident that buying a home is a smart, worthwhile investment." In fact, according to the survey, 84 per cent of those polled in Ontario said that buying a home is a good or very good investment. Among those who plan to purchase this year or next, 34 per cent cited the need for a bigger home. Thirty-three per cent will do so because their current home does not meet their needs, and 32 per cent said they will buy because house prices are attractive.
The market is definitely rebounding and on the mend!
TOPIC OF THE SEASON:
THe 2009 Federal Budget Introduces Incentives for the Housing Market!
RRSP Home Buyers Plan Changed
The 2009 budget increases the withdrawal limit for the RRSP FirstHome Buyers Plan to $25,000 from $20,000 providing first-time home buyers with additional access to savings to purchase or build a home.
The eligibility and repayment rules remain pretty much the same. The money withdrawn from the RRSP must be repaid over a period of no more than 15 years to retain its tax deferred status. The repayment period starts the second year following the year the first withdrawals were made. If a participant pays less than the scheduled annual payments, the amount that they don’t repay must be reported as income on their tax return for that year.
Buyers Get a Tax Credit
For 2009 and subsequent years, the budget also introduced a new non-refundable tax credit to help first-time home buyers with some of their closing costs. This Home Buyer Tax Credit (HBTC) will provide up to $750 in tax relief on the purchase of a first home. The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.
To qualify for the HBTC, neither the homebuyer or the home buyer’s spouse or common-law partner can have owned and lived in another home in the year of purchase or any of the four preceding years.
Grants for Eco-friendly Upgrades
The ecoENERGY Retrofit program provides home and property owners with grants of up to $10,000 to offset the costs of making energy-efficiency improvements. Grants apply to a variety of measures that reduce energy consumption – anything from increasing insulation to upgrading a furnace. Building on the success of the existing program, Budget 2009 provides an additional $300 million over two years to the ecoENERGY Retrofit program to support an estimated 200,000 additional home retrofits.
Home Renovation Tax Credit
The proposed Home Renovation Tax Credit (HRTC) will provide a temporary 15 per cent income tax credit on eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010. The credit may be claimed for the 2009 taxation year on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, and will provide up to $1,350 in tax relief.
What is Eligible? Renovating a kitchen, bathroom or basement, new carpet or hardwood floors ,building an addition, deck, fence or retaining wall, a new furnace or water heater, painting the interior or exterior of a house, resurfacing a driveway, laying new sod,
For more information on all of the home ownership and housing related stimulus in Budget 2009, go to http://www.budget.gc.ca/2009/plan/bpa5a-eng.asp#Personal or to the Canada Revenue Agency Web site at www.cra-arc.gc.ca and search for "Home Buyers Plan."
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.