That being said, it appears that the Ontario government will still continue with their grant program. This will mean that any homeowners will still have access to up to $5,000 in government grants for energy efficient home improvements. While this is less substantial then original combined federal and provincial amount of $10,000 in grants – it still is a very worthwhile incentive.

This will not impact the post-evaluation process for those individuals who have already done their first evaluation. Those individuals who have recently had their first evaluation still have between now and March 2011 to do their retrofits and have their second evaluation completed.

Please pass this information on to anyone you know involved in the program so as to assist them in planning their projects accordingly.

Homeowners clearly appreciate that where a house is located and the amenities of the neighbourhood can be even more important than the number of bedrooms or bathrooms it has. For some, it’s essential that their new home be close to public transit so that multiple cars aren’t necessary. Others require proximity to schools so their children can avoid the need for busing or being driven to class every day. Some people cycle to and from work and other activities; in a city such as Ottawa, where our network of cycling paths is extensive and still growing, it’s a real and sensible option.

The City of Ottawa’s e-Map application, which is located on www.ottawa.ca, is a terrific resource for prospective Ottawa Real Estate buyers to do some preliminary research about the surroundings of a potential new home.  The e-Map allows users to zoom in on a street or community, and then toggle various overlays on and off to see what’s located nearby. For example, the area around the intersection of Baseline Road and Greenbank Road, in the city’s west end, is home to numerous schools, many parks offering facilities for soccer and softball, several child-care centres and a hospital, and is close to roads that have dedicated cycling lanes. Now, that’s the kind of information that can really make a difference in a family’s interest level in a particular neighbourhood, especially if they are newcomers to our city. That’s not to say that the number of bedrooms and bathrooms or the size of the backyard shouldn’t also be important factors influencing the home you choose to purchase.

Everyone should make a list of “must-haves” when shopping for a home; these are the things that will allow you to live your desired lifestyle. If you love to cook, don’t compromise and buy a house with a kitchen layout you hate (unless you’ve got the will and the cash to renovate). If you love to entertain out-of-town guests, make sure you’ve got that spare room (and possibly an extra full bath). For others, a fenced yard for the beloved family dog might be essential. The point is, every family’s list will be different.

Once you have a good idea of which areas you might like to live in, and what your housing needs are, then it’s time to work with me to find that perfect home for your lifestyle? As a REALTOR® specializing in the Ottawa Real Estate market I have access to the MLS® system, where I can conduct a customized search of homes for sale in your favoured neighbourhoods that also possess your “must-have” home features. Saving you time and energy, making your home search simpler and faster – that’s what a REALTOR® can do for you.

What does this mean for the Ottawa Real Estate Market?!
The Ontario Real Estate Association (OREA) opposes any system of harmonized sales taxation because it will hurt the affordability of housing. Specifically, a HST will result in the 8% provincial sales tax being levied on a variety of services, including legal fees, real estate commissions and home inspections currently exempt under the existing tax structure. These new taxes could add up to thousands of dollars in extra closing costs.

OREA POSITION

“A harmonized sales tax would add yet another barrier to homeownership in the province of Ontario.” OREA President Pauline Aunger, March 2009

OREA’s concerns with respect to a HST centre on extra costs it will impose on new and resale housing.

Resale home transactions will attract significantly more tax under a HST system. Specifically, buyers and sellers will face an additional tax on REALTOR® commissions, lawyer fees, moving costs, home inspection fees, mortgage insurance premiums and title insurance.

Table 1: HST and Resale Homes

For a single detached house priced at $360,000 a HST could add $2037.25 in new taxes to closing costs (see Table 1). On average, a new HST would add $1731.00 in new taxes to Ontarians who buy or sell resale homes. In total, a HST will add $313 million annually in new taxes to resale home transactions.3

“These additional taxes could price some homebuyers, especially first-time homebuyers, right out of the market,” explained OREA President Pauline Aunger. “Now is not the time to be erecting barriers to homeownership. We need consumers to invest in housing to help get our economy going again.”

Ontario’s real estate industry is essential to the provincial economy. In 2008, real estate in Ontario accounted for $56.6 billion in sales, $6.01 billion in ancillary economic spending and $1.35 billion*4 in land transfer tax revenue to the provincial government. In addition, real estate employs 110,000 Ontarians directly and indirectly.*5

With respect to new housing , a study conducted by world’s largest real estate advisory group, Altus Clayton, indicated that a new HST would cause tax increases for new single detached homes ranging from $8,957 (Windsor) to $17,049 (Ottawa) outside the Greater Toronto Area (GTA), and from $24,566 (Mississauga) to a whopping $46,676 (Toronto) within the GTA.*6 According to the Building Industry Development Association (BILD), a HST on new homes would cost Ontario home buyers $2.4 billion annually.*7

Altogether, a HST on new and resale homes could cost consumers $2.7 billion annually in new taxes.

OREA RECOMMENDATION

“I urge the Government of Ontario to avoid sales tax harmonization and work with REALTORS® to promote homeownership as a safe and secure investment.” OREA President Pauline Aunger, March 2009

OREA urges the Government of Ontario to avoid harmonizing the PST with the federal GST. Such an alteration to Ontario’s tax policy would costs consumers, particularly homebuyers, millions, ensuring that housing sector’s recovery from this economic downturn is unnecessary prolonged.

In the last decade, Ontario’s homeowners have faced a barrage of new costs. From municipal land transfer taxes to sky rocketing property taxes, homeowners are being pushed to the brink to accommodate increasing demands from government. A HST would represent yet another demand on Ontario’s already overtaxed homeowners.

REALTORS® are eager to work with the Government of Ontario to keep the costs associated with homeownership at affordable levels, encouraging homeownership as a safe and secure investment.

Revised: March 20, 2009

*1 CMHC premium of 2.75% for mortgage with a 5% down payment on a $300,000+ home. *2 5% sample used. Real estate commissions are negotiable. *3 A HST would add an average of $1731.00 in additional tax costs for resale home buyers – using 2008 MLS® average residential property selling price of $302,354. In 2008, 181,001 residential properties were sold in Ontario. *4 Ministry of Finance, Public Accounts, 2007/2008. *5 Altus Group, “Economic Impact of MLS® Home Sales,” June 12, 2007. *6 Altus Group, “New Housing Is Different: Implications for Sales Tax Harmonization on New Home Buyers in Ontario,” March 9, 2009 *7 BILD, “Harmonization would slam door on homebuyers: Report,” March 11, 2009

First impressions mean even more in a slower Ottawa Real Estate Market

In a hot real estate market, even homes that don’t give the greatest first impression will still sell. However, as the market cools off, the listings that show well will be the ones that sell faster and for a better price.  The Ottawa Real Estate market is no exception.

Recent economic uncertainty has led to more of a buyers’ market, in this market Staging and preparing a home for sale is more critical now than ever before.

While interior decorating concentrates on making people feel more at home in their interior space, the objective of staging is to make the home more marketable inside and outside. Staging usually involves getting rid of clutter and “depersonalizing” a home.

Most people can’t see themselves in someone else’s home.  Too much clutter or outrageously decorated or in need of a major clean-up can throw buyers off.  Staging a home for sale can make a huge difference in the outcome of the deal.

Although the cost to hire a professional home stager can vary widely depending on the scope of the project, it’s a service that is worth the investment, even if the property is priced properly.  Or better yet… Just Ask your Ottawa Real Estate professional if he or she can offer any helpful staging tips.

Remember staging works!!!   If you want to know more… Just Aks.

Homeowners have until Feb. 1, 2010 to save 15% on renovations via the Feds new Home Renovation Tax Credit Tax Credit.  Taxpayers can claim renovations on their 2009 tax returns on costs over $1,000, but not exceeding $10,000.  This will definitely create numerous opportunities in the Ottawa Real Estate Market for investors and trades professionals alike.

The list of eligible expenses for the tax credit includes renovating kitchens, bathrooms or basements; new carpeting or flooring; building additions, decks, or retaining walls; installing furnaces or water heaters; interior and exterior painting; or driveway resurfacing.  Note; Routine maintenance does not qualify.

The government will also be putting an extra $300-million over two years into energy retrofits and raising to $25,000 the amount first-time homebuyers can borrow from RRSPs.

According to Statistics issued by the Ottawa Real Estate Board, This December saw 18.8% fewer sales than the December of 07; However, that being said the average price for all of 2008 was 6.3% higher than that of 2007.  The year’s average house price in Ottawa for 2008 was $289,766.

Basically what can be gathered from this is despite concerns of the economic slowdown; The Ottawa Real Estate Market remains a fairly stable resale marketplace.  Because of the fairly stable economy and strong local job market, Ottawa always weathers the economic storm better than other city centres.  In my opinion Ottawa is just not a boom or bust kind of town.  Ottawa just keeps on keeping on, which is OK with me.

In short; The 2008 Ottawa resale market can be described as more balance, less booming.