Ottawa Business Journal: HST myth hurting Ontario real-estate resale market: OREA survey – Residential – Real Estate – Ottawa Business Journal
October 29, 2010
The HST only applies to transaction fees in the case of resale homes, OREA said in a statement released Wednesday.
“Currently, the average price of an Ontario resale home is around $330,000. Therefore, this confusion leaves the majority of Ontarians wrongly believing that the HST will add more than $40,000 to the transaction cost,” the association stated.
“There is growing concern among real estate professionals that this misperception about the HST is dampening the Ontario housing market.”
However, in the release OREA did not provide statistics comparing the resale market before and after HST was introduced in July.
The survey was conducted on the web with 830 Ontarians that were already a part of Ipsos’ online panel.
Completed between Oct. 4 and 11, the survey is estimated to be accurate within 3.8 percentage points, 19 times out of 20.
The association represents 49,000 brokers and salespeople who are members of 42 real-estate boards in Ontario.
I agree that there is a perception among the general public that the Harmonized Sales Tax applies to the full purchase of resale houses, however, I do not agree that this perception is slowing or hurting the Ontario resale real estate market. On the contrary, I believe that this perception fueled sales in the first half of the year, and while sales are down for the second half of the year, the Greater Toronto Area is on track for one of the best years in history for resale homes, according to the Toronto Real Estate Board.
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