The purpose of this post is to give everyone an update of the market statistics from July 2009 along with a look at 2009 overall. On the surface it looks like the economy has changed for the better so I think it’s a good time to look at the numbers. To begin we’re gonna look at the numbers for the entire market and then we will break them down by price range to really get a good idea of what is going on.

The numbers are pretty interesting and even though the underlying feeling lately has been pretty positive the numbers show that the market is down from 2008. One explanation for this could be that the fact that May to August is always the busiest time of the year because most families want to move before School starts. So that means that the outlook was positive because for example when you look at the production in July compared to March, July is higher but that would most likely be the case any other year.

Even though sales are down in London this year we do not have to much too worry about it because here in London home prices are fairly stable. In a good year prices usually go up about 5%, thus in a bad year prices do not go down too much. One of the main reasons as to why prices dropped so much in the U.S. was because places like Florida would have houses raising in value by 30% in one year when nothing really changed in the market. So of course when values are raising at such a high rate for no real reason when the market goes sour they are going to have larger drops in values as well.

These are all general trends but to really get a good idea of what is happening in the market we should look at the activity in each price range. Here is a break down of sales for the July and the year to date in 2009 compared to July and the year to date in 2008.

The numbers here are very interesting overall when we look at the numbers for the year to date; only the lowest price range has had an increase in sales while all the other prices ranges have gone down. It is tough to say for sure why the lowest range has seen an increase in sales as it could be benefitting from government programs geared towards new home buyers. Since prices are down people may see more value then in years past and there may be more power of sales. The sale of each home has so many different factors which determine why, for what price and when a house sells – it isn’t even fair to pin point it to one reason or another.

When we look at July sales broken down by price range again we have some interesting numbers that are not easy to explain. In some of the price ranges (mostly the higher end price) we see an increase compared to last July. Again it is too difficult to assign just one reason for this but one thing we did notice from open houses is that alot of the same people were coming through and waiting for a better deal, which is fine, but if you have decided to move this year, and usually every family with children would like to get into their new home before school starts, how long can you wait? This may have been the month people decided it was time to make a decision. This is just an idea I am positive there are many other reasons why people purchased when they did.

In a couple weeks we will do another update with August Statistics – it will be interesting to see if some of these trends continued. If you have any questions or comments let us know.

Both the federal and provincial governments have come with programs to help ease the financial burden for first time home buyers. Their main reasoning behind these programs is the hope that these programs will entice more young people to purchase their first home improving home sales and in turn improving the economy overall. The purpose of this blog is to look at both options breaking how they work and how they can benefit you.

First-Time Home Buyers’ Tax Credit (HBTC)

This program is the Federal option: It was purposed in the recent federal budget. For 2009 and subsequent years, the budget proposes to introduce a new non-refundable tax credit, based on an amount of $ 5,000, for certain  home buyers that acquire a qualifying home after January 27, 2009.

What Does that Mean for you ?

The key part of that statement is when they say “based on an amount of $ 5,000.” What this means is the credit is not $5,000 but that is the base number they use to calculate the refund. Your next question may be then how do they calculate the rebate? The HBTC is calulated by multiplying the lowest personal income tax rate for the current year. So if we look at this year for example (15% in 2009) by $5,000 equals a rebate of $750.

Who is Eligible for the HBTC?

An individual will qualify for the HBTC if:

• they acquire a qualifying home; and
• neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.

There is an exception to these rules. If you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first-time home buyer. However, the home must be acquired to enable the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.

What is a Qualifying Home?

A qualifying home is a housing unit located in Canada. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units and apartments in duplexes, triplexes, fourplexes, or apartment buildings, all qualify. A share in a co-operative housing corporation that entitles you to possess and gives you an equity interest in a housing unit located in Canada also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

As well, you or the related person with a disability must intend to occupy the home as a principal place of residence no later than one year after buying it.

If I buy a house, can my spouse or common-law partner claim the HBTC

Either one of you can claim the credit or you can share the credit. However, the total of both your claims cannot exceed $750.

How will I Claim the HBTC?

Beginning with the 2009 personal income tax return, a new line will be incorporated to allow you to claim the credit.

Land Transfer Tax Refund for First-Time Home Buyers

This is the provincial option and this refund is applied to the Land Transfer Tax that everyone is required to pay on all transfers of land in Ontario. Land Tranfer tax is usually about 1.5% of the purchase price of your new home.

How Much is the Refund?

The maximum amount of the refund is $2,000. If the refund is claimed at the time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Revenue. No interest is paid on this refund.

Who Qualifies?

To claim a refund, you:

• must be at least 18 years of age;
• must occupy the home as your principal residence within 9 months of after the date of transfer; and
• cannot have owned a home, or an interest in a home, anywhere in the world.

In addition:

• your spouse can’t have owned a home, or an interest in a home, anywhere in the world while being your spouse; and
• in the case of a newly constructed home, you must be entitled to a Tarion New Home Warranty.

How Do you Apply?

Qualifying taxpayers may claim an immediate refund at the time of registration in one of two ways:

• If registering electronically, by completing the required statements under the explanation tab of the electronic affidavit.
• If registering on paper, by filling an Ontario Land Transfer Tax Refund Affidavit For First-Time Purchasers of Eligible Homes at the Land Registry Office.
• Applications for a refund must be made within 18 months after the date of the transfer.

If you have any other questions about these programs or are ready to make the leap and purchase your first home we are just an email away.

Mandatory energy audits another part of the latest Dalton McGuinty budget has been a hot topic for debate lately. As part of the new Green Energy Act McGuinty is proposing that homeowners have a mandatory home energy audit done that could cost anywhere between $300 – $500 before they sell their London, ON house. McGuinty feels that “Forcing people to conduct audits is a good idea because it will allow buyers to know their energy costs. When it comes to buying the single most expensive thing that youʼre likely to buy during the course of your lifetime- a home-youʼre entitled to know what kinds of cots youʼre going to incur when it comes to energy.”

Holes in the Logic

Critics believe that there are a couple key holes in McGuintyʼs logic. Some critics feel that this is just another poorly timed cash grab. The Association of Ontario says that the additional cost will hurt homeowners in what are increasingly difficult economic times. Gerry Weir president of the Ontario Real Estate Association said “The results of audits will be used by home buyers as bargaining chips to to significantly reduce the final selling price. Home sellers are already worried about lost equity in their homes. A move like this, which will reduce their value even further, will not help them in any way.”

Comparing Apples to Apples

Another major issue with the Audit that the Realtors association points out is that there is no one standard for energy audit and no regulation auditors. This debunks one of McGuintyʼs major reasons for a mandatory audit is that the government “wants to make sure that you can compare one house to another on an apple to apple basis.” If there is no standard for audits then what is the real difference between the audits and the buyers using previous heating & hydro bills to estimate future energy costs.

I think the Ontario Association of Realtors is right buyers will use audit as a major bargaining chip to reduce purchase prices. People will look at the audits results and will probably see the recommendations as something wrong with the house instead of looking at the recommendations as changes that if were made would benefit the future owner over the long term because they will be the ones saving on the energy cost. The major problem with this idea is the mandatory part, once you attach the word mandatory to anything it automatically sheds a negative light on the issue. Solutions like the energy retro fit grant give major incentives for people to do work voluntarily giving them the benefit of saving money on the initial purchase and on the future energy costs.

Let us know what you think?

We have spent the past couple of months working on a new website in our continuing effort to improve our costumers experience. Here is a quick overview of some of the great new features of the website.

New Features Coming Your Way

Communties Search

This is one of the most important parts of the new site; This section is designed to give people more information about all the different neighbourhoods throughout London. Here you can find valuable information like price range for the area, complete list of elementary and secondary schools as well as parks, shopping, emergency facilities, and places of worship. This section is filled with facts and photos to give you a glimpse of a particular area with snapshot photos of landmarks and attractions.

London, ON Buyers Tips

Here we have outlined everything a client needs to be aware of and consider when making the decision to purchase a home. We strive to make London Ontario home buying less stressful. The best way to avoid making costly mistakes is to educate yourself, and this section has outstanding resources for you to use as your guide. We have included everything from, The 10 Deadly Mistakes Buyers Make When Purchasing a Home, to Hiring the Right Real Estate Agent, The 7 Things to Look For in a Neighbourhood, even Tips for the Moving Process. This information will enable you to make smarter decisions and buy your London home with confidence.

London, ON Sellers Tips

If you have to sell your London, ON Canada home, it needs to be sold for the top dollar and in a timely manner. In sellers tips, we provide you with the tools to make the selling process as easy for our clients as possible. With valuable information on The Benefits of Using a Realtor to Sell Your Home, Getting Your Home Ready Form The Market, and most importantly, How to Get Top Dollar For Your Home, Fast. No matter what price range your home is in we handle all our listings with the same high level of service our family has worked so hard to perfect. With the tools provided and our help, selling your home will be much easier.

London ON, Business Directory

With our Business Directory, we put you in touch with businesses and services, which come personally recommended by ourselves or our trusted clients. With contact information on Home Inspectors, Home Repairs, Painters, Roofers, and Landscapers, we put you in touch with the RIGHT people for the job.

The London,ON Real Estate Blog

Our London, ON Real Estate blog is maintained and updated by us personally, this is our way of getting information to our clients that we feel will be valuable and beneficial to them. Our blog combines tests, images, and links in an interactive format to keep our clients up to date and changes to legislation, information about what’s going on in London, and well as personal information about us. Our readers also have the ability to leave comments, and express opinions, which we encourage, because your feedback is important to us.