Did Ontario’s real estate tax close the deal?
Government numbers earlier this week showed that the province’s foreign buyer’s tax on real estate has curbed offshore investment and hosed down a feverish Toronto region housing market.
But a year after its launch last April, industry observers remain unconvinced that Ontario’s 15 per cent non-resident speculation tax had the right target in its crosshairs and, home buyers and sellers — caught mid-transaction by the ensuing plunge in home values — say the government hasn’t even acknowledged the casualties caused by its manipulation of the market.
The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1,317 sales were processed through the RAHB Multiple Listing Service® (MLS®) System in May, 27 per cent fewer than the same month last year and 18 per cent fewer than the 10-year average for the month.
All property listings were 19.8 per cent lower than the same month last year, but 5.4 per cent higher than the 10-year average.
“There’s definitely been a trend to fewer sales compared to the 10-year average since the spring of last year, when the Fair Housing Act came into effect and, coincidentally, the real estate market underwent a significant change,” said RAHB CEO George O’Neill. “However, the local real estate market is stable and is, in fact, following the normal progression of increasing spring-time sales from the lows of December and January.”
Overall, residential sales of 1,273 units were 26.2 per cent lower than May of last year. Residential freehold sales were 28.9 per cent lower than the same month last year, while sales in the condominium market were 13 per cent lower.
The median price of freehold properties decreased by 5.7 per cent compared to the same month of the previous year, while the median price for condominium properties remained the same.
“The condominium market is not seeing the drop in average and median sale prices seen in the freehold market,” noted O’Neill. “Prices were stable compared to last year, suggesting that lower priced properties and the condo market are faring quite well. That market is also seeing a higher sales-to-new-listing ratio and is on the border between a balanced and seller’s market.”
The average price of freehold properties declined by 8.5 per cent from May 2017, and the average sale price in the condominium market increased by nearly one per cent compared to the same period.
Average sale price is based on the total dollar volume of all properties sold through the RAHB MLS® System. Average sale price can be useful in establishing long-term trends, but should not be used as an indicator that specific properties have increased or decreased in value. Please contact a local REALTOR® for information about your specific neighbourhood or property.
The average number of days on market rose to 27 days from 16 days in the freehold market and increased to 28 days from 16 days in the condominium market, compared to the same month last year.
“There continues to be an increase in average days on market, which is good for the market overall,” added O’Neill. “Buyers have more time; sellers can be more confident that when they sell and turn to buying their next property they won’t be faced with rapidly escalating purchase prices. A RAHB REALTOR® can help buyers and sellers navigate their way through this.”
Every community in RAHB’s area has its own localized characteristics that influence that market. Please ensure you contact a local RAHB REALTOR® for professional advice.
That majestic time of the year is upon us, when it’s not too hot and not too cold. This perfect weather has us digging into summer salads and hot-off-the-grill eats served alfresco, but on days when we’re stuck inside we’re drawn to dining rooms with an indoor-outdoor feeling. Here we’ve gathered the best H&H dining rooms that welcome the great outdoors — indoors!
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Streetcity Realty Inc., Brokerage
247 Centennial Parkway N., Unit #15
Hamilton, Ontario, L8N 1E8, Canada
Hamilton Office: (905) 664-5000
Burlington Office: (905) 634-9476
Fax: (905) 662-7171
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