Ontario's Fair Housing Plan introduces a comprehensive package of measures to help more people find affordable homes, increase supply, protect buyers and renters and bring stability to the real estate market. 


HIghlights of the Ontario's Fair Housing Plan are:


Non-Resident Speculation Tax

  • Implementing a new 15-per-cent Non-Resident Speculation Tax (NRST) on the price of homes in the Greater Golden Horseshoe (GGH) purchased by individuals who are not citizens or permanent residents of Canada or by foreign corporations.
  • Upon the enactment of legislation, the NRST will be effective as of April 21, 2017. Binding agreements of purchase and sale signed on or before April 20, 2017 are not subject to the NRST.
  • Please consult this technical bulletin for more information.

Rent Control

  • Expanding rent control to all private rental units in Ontario, including those built after 1991. This will ensure increases in rental costs can only rise at the rate posted in the annual provincial rent increase guideline. The increase is capped at a maximum of 2.5 per cent. Legislation will be introduced that, if passed, will enact this change effective April 20.

Housing Supply

  • The government is taking positive steps to bring more housing supply into the market. Specifically, the province will sell off excess lands for development, strike a Housing Group to examine barriers like red tape to development and work with municipalities to encourage developers to build on vacant land that is serviced and ready for development.

Review of REBBA  

  • One of the announcements made by the province as part of the plan was a commitment to do a broad review of REBBA including looking at practices like multiple representation and double ending. 
  • You may remember that the government originally committed to reviewing the practice after the CBC Marketplace report aired in November 2016. After the report aired, OREA learned that many inside government were urging the Minister and Premier to ban multiple representation.
  • Recognizing the government’s commitment to Act on multiple representation, OREA’s strategy has been to encourage the province to work with us on a full review of REBBA.
  • A review would be an opportunity to discuss multiple representation but to do so in a much more thoughtful/rationale way. It will also be an opportunity to lobby for other changes to REBBA like PRECs, speciality designations, greater fines, higher education standards and other changes which will help REALTORS® do business better.
  • OREA wanted to avoid a situation like British Columbia where the province responded to bad media coverage and banned multiple representation in knee jerk fashion. Our approach has ensured that the government did not make any unilateral changes without broad consultation from the real estate profession.


To read a full report of the Ontario Fair Housing Plan, click here.

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March resale market goes out like a lion

 

 Members of the Ottawa Real Estate Board sold 1,485 residential properties in March through the Board’s Multiple Listing Service® System, compared with 1,160 in March 2016, an increase of 28 per cent. The five-year average for March sales is 1,240.

“The busy spring selling season descended upon Ottawa early this year,” remarks Rick Eisert, President of the Ottawa Real Estate Board. “Unit sales for March marked the second-best on record, only 13 units down from the record set in March 2010. We’re also starting to see properties move faster, with the average cumulative days on market sitting at 82 days. With all these positive numbers, it’s still important to emphasize that price and conditions vary from neighbourhood to neighbourhood.”

 

March’s sales included 314 in the condominium property class, and 1,171 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, townhouse, etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases, and timeshares. The residential property class includes all other residential properties.

 

“We’re seeing a lot more multiple offers than we’ve experienced in a while, mostly due to lower inventory levels,” says Eisert. “The number of properties listed in March also experienced a decrease over last year, and is about 100 units shy of the five-year listing average for March.”

 

The average sale price of a residential-class property sold in March in the Ottawa area was $415,467, an increase of 5.3 per cent over March 2016. The average sale price for a condominium-class property was $272,597, an increase of 5.3 per cent over March 2016. The Board cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold.

 

“We’re seeing a trend since the beginning of the year, with 50 properties sold over $1 million in the first quarter of 2017, compared to only 22 in the first quarter of 2016,” explains Eisert. “Again this month, a higher number of properties in the over $1 million price range were sold. These gains were in both the residential and condominium property classes, with seven more residential units and four more condo units sold this year over last year. These high-end property sales are taking place throughout the market with Rockcliffe Park, The Glebe, and Westboro leading the way.”

 

“The two most active price points in the residential market in March were the $300,000 to $399,999 and the $400,000 to $499,999 range, accounting for 53.7 per cent of the market. Within the condo market, the most active price range was in the $150,000 to $249,999, accounting for 51.2 per cent of the market,” says Eisert. “In addition to residential and condominium sales, OREB Members assisted clients with renting 639 properties since the beginning of the year.”

 

Planning to make a move. Give us a call or send an email, we are always available to help.

PLAN FORWARD. PLAN SMART.

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Buying a home like a winner! Here are few essential tips for making a buying process as smooth as possible:

 

  • Arrange a pre-approval mortgage from your lender and get your finances in order – Shop for lender that will give you the best financing options. When you fall in love with a house, nothing is worse than failing to get financing from your lender. BE PREPARED.

 

  • Buy what you can afford – Make a list of your needs and wants and look for a house within your means. There are expenses related to the purchase of a home, such as land transfer tax, legal fees, property taxes, insurance, etc, so don’t forget to budget that in. AVOID SURPRISES - Find out the costs and expenses when purchasing a home.

 

  • Always hire professional to do the job – When you hire a licenced real estate agent to help you to purchase a home, your interests are protected. Buying a home is emotional for many home buyers, especially during negotiation. Emotions can often lead to pitfalls. A real estate agent will provide their level of expertise and guidance, give recommendations to buyers to make the right decision and negotiate the best price to get you the house. It is a WIN-WIN situation.

 

  • Think long term investment – A home is a very important and smartest investment that an average person will ever make. So think buying a home as a long term investment and take that decision seriously. PLAN FORWARD. PLAN SMART.

 Contact me today and plan your journey to your next home.

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