Lisa Collins

EST RATES
Monday, April 27, 2009

The average price of a home is quite a bit higher in the GTA (Greater Toronto Area) is quite a bit higher than the overall average for the rest of the country. There are many homes over $500,000 where the impact of the harmonized sales tax will have a huge hit on home buyers.

When a buyer is buying a new home from the builder they have to pay GST and PST. If a person buys a $500,000 home from a builder their total tax will be approximately $40,000 higher than if they were to buy a reslae home where only GST is incorporated into the sale price of the home.

For Ontario, this will have a huge impact on a number of new home builders. Many planned projects will be put on hold or cancelled all together because the builder will not be able to sell homes at these tax inflated prices. Builders will have to pursue one or more of the following options to stay viable: Get as much product below $400,000 as possible; use cheaper building materials and finishes; eliminate upgrades and even some standard finishes; eliminate sustainability and “green” features if they cost more; strip down landscaping, exterior finishes and features; and keep units small.

What will the impact to the playing field be? There will be more demand for resale homes and with more demand comes multiple offers and rising prices. For a buyer deciding what to do after July 1, 2010 when this harmonization comes into effect, they will have to weigh their costs of buying new or reslae given these factors.

TORONTO, April 6, 2009 - In March 2009, Greater Toronto REALTORS® reported 6,171 sales – down seven per cent from March 2008, representing the smallest year-over-year decline in the last five months. The average price for March transactions was $362,052 – down less than five per cent from the same month last year.

“The Greater Toronto housing market has stood up very well given the challenging economic times the world has experienced in recent months,” commented TREB President Maureen O’Neill. “In fact, over the past two months, the situation in the housing market has improved.”

The seasonally-adjusted annual rate of sales increased to 65,600 in March – up 36 per cent from the ten-year low reached in January.

“Sales in March increased at a rate over and above what would be expected from the normal spring-time bump,” said Jason Mercer TREB’s Senior Manager of Market Analysis. “A greater number of households have taken advantage of increased affordability in the housing marketplace.”

At the Heart of Thornhill, this new main street on Disera Drive will be the "it" destination for the Thornhill Community. With shops and restaurants near the Promenade Shopping Centre this makes the area more walkable. Nearby is Thornhill Green, which combines open green spaces, wooded areas and a great playground for kids. And this who area is a great place to live too with townhomes being constructed and two more condo towers. There are three already completed and ready for occupancy. If you are interested in finding out more about living here, call me at 416-518-8188.

Has anyone been there lately? This mall was not my favourite place to shop in recent years but the mall has undergone a mega transformation. Not only has the Promenade been redecorated but the retailers there have mostly changed including new addition:

American Apparel

Coach

Lucky Brand Jeans

and many more.

The food court has been changed to look like this:

It is really a great shopping destination and can be found at Bathurst and Centre.