Land Transfer Tax
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Home prices went up all across the country in the second quarter of this year and will likely rise further, especially in and around Toronto, according to the latest Royal LePage House Price Survey. It appears that the national housing market was at a turning point, with some major regions continuing to grow unabated while others peaked and began to pull back for the first time in three years.
Toronto was one of those areas that experienced strong price appreciation and, according to Royal LePage CEO Phil Soper, it will continue to see prices appreciate in the near-term as peak demand has yet to occur. Toronto’s low inventory, particularly listings for detached homes, has continued to fuel our housing market. Average house prices rose 7.3 percent in June compared to June 2011.
According to the Royal LePage survey, bungalows were hot in Oakville during the second quarter of this year. The average price of a bungalow increased 12 percent or $419,000 compared with $374,000 a year ago; the price for a two-storey rose 2.8 percent or $475,000 compared with $462,000 in 2011 and the average condo price rose 2.2 percent or $285,000 compared with $279,000.
Those figures were for the three months from April to June, but for the month of June alone there was a remarkable spike in prices, according to The Oakville, Milton and District Real Estate Board. Our local real estate board’s statistics show that the average price increased by a whopping 15 percent over June 2011. The average price was about $690,000 compared to just under $600,000 for the same month last year.
In Burlington, the average sale price was up by 9.3 percent, or $458,668 compared to $419,661 in June 2011. The price of freeholds in Burlington rose by 6.9 percent and condo prices by 8.1 percent. The average freehold price was $522,573 compared with $488,636 in June last year and the average condo price was $306,545 compared with $283,481.
Much of this heating up of the marketplace can be attributed to a tightening of supply. Locally we are seeing more buyers looking outside Toronto where that city’s Land Transfer Tax is adding thousands of dollars to the price of a home. The city has levied an additional tax on top of the provincial Land Transfer Tax and that is having a dramatic impact on the housing picture in Oakville and Burlington as buyers seek better deals here.
When selling your home, even in a hot market, it is critical to list with an agent with a proven track record, one who has innovative real estate marketing strategies, a comprehensive website, video tours of homes, individual web links for each property and an overall game plan that makes you a winner.
The Dan Cooper Team has such a record, making us one of the top brokerages in the area. We know the Oakville and Burlington housing markets. We are the real estate experts and are among the leaders in developing the latest web-based solutions. The bottom line is that we know how to sell homes.
For more information on the Oakville and Burlington housing market, and to stay informed about home sales in your area, join us on Facebook at www.facebook.com/dancooperteam or visit our website at www.dancooper.com.
The Dan Cooper Team is an award-winning brokerage with Royal LePage Real Estate Services Ltd., Brokerage – the Number 1 Royal LePage Team for Canada in 2009, 2007, 2005, 2002, 2001, 2000 and 1999. Call the office today for your free home evaluation. To learn more about the firm’s innovative marketing solutions. And join us on Facebook at www.facebook.com/dancooperteam for the latest real estate and community news.
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The controversial municipal land transfer tax in the City of Toronto is adding thousands of dollars to the price of a home there. This extra tax is adding close to $6,900 to the purchase price of the average home. Factor in the more than $7,500 the province charges as its land transfer tax and you can see why people are looking outside Toronto where they will pay only the provincial tax.
Include the changes in the mortgage rules and we can see why house sales in Toronto have taken a nosedive – transactions were down in June 13 percent compared to June 2011.
According to the Greater Toronto Realtors, transactions in the GTA were down 5.4 percent last month compared with the same month last year. The decrease was attributed to the deep dive in transactions in the City of Toronto while the rest of the GTA was comparable to a year ago.
“Buyers continue to face the substantial upfront cost associated with the City of Toronto’s unfair land transfer tax,” said Toronto Real Estate Board President Ann Hannah. “Recent polling by TREB suggests that many households are considering home purchases outside of the City of Toronto to avoid paying the land transfer tax. This goes a long way in explaining the disproportionate decline in sales in the city versus surrounding regions.”
The result is more and more homebuyers are looking elsewhere and this is having an impact on home sales in the Oakville and Burlington areas. Buyers are weighing the downside of having to commute into Toronto against the fact they can get more home for their money outside the city.
We have a good transportation network so the reality is, owners can likely get into the Toronto core as quickly as it would take from Willowdale in north Toronto.
The first areas buyers from Toronto are looking at are Oakville and Burlington. The reason is simple – they are among the most desirable communities in Canada in which to own a home, and home valuations have maintained or surpassed the national average year over year.
When buying a home, choosing a realtor who knows the area, has the resources to find the home that best fits your needs and can negotiate the best deal on your behalf is critical.
The key to buying or selling your home is to choose an experienced realtor who will market your home effectively. Innovative advertising, knowledge about the marketplace, commitment and exemplary service differentiate The Dan Cooper Team. The result is that we are achieving accomplishments that illustrate the Dan Cooper difference. We have been the Number 1 team in Canada for Royal LePage for seven of the past 13 years, which is a testament to our ability to effectively sell homes in the Oakville and Burlington areas.
Our expertise, our position as one of the leaders in this area and our innovative approaches to selling homes has garnered us a growing fan base following us on www.facebook.com/dancooperteam. Join us now and discover what many already have – that we are on top of the latest developments in real estate in Oakville and Burlington.
The Dan Cooper Team is an award-winning brokerage with Royal LePage Real Estate Services Ltd., Brokerage – the Number 1 Royal LePage Team for Canada in 2009, 2007, 2005, 2002, 2001, 2000 and 1999. Call the office today for your free home evaluation or to learn more about the firm’s innovative marketing solutions. And join us on Facebook at www.facebook.com/dancooperteam for the latest real estate and community news.