July 2010 Newsletter

By
Real Estate Agent with Real Estate Homeward, Brokerage 9530908
July 2010 Newsletter In this Issue:  How about that HST!  Home Sales for the Month of June  A Cautionary Note for Domestic Confidence Kaceey Team are Business and Real Estate Sales Representatives with over 30 years of experience in Mergers & Acquisitions ($1m+), Residential & Commercial Listings, Multiplexes and Long-term Care Facilities, with a Residential area focus on Leslieville, Danforth, Riverdale, The Beach, Woodbine Corridor and Greenwood-Coxwell. You may access past issues at www.kaceeyteam.ca/newsletters How about that HST! Now that it has really hit us in the pocket on July 1st there is a lot of discussion on it’s merits. From a business perspective it will make recording and reporting easier. Also, any business that did not have a PST number will be enjoying a 13% input tax credit instead of 5%. (That means that all the PST they pay from now on will be recoverable.) From a personal perspective, we saw a jump at the pump of 8 cents a litre and for those who smoke - a 75 cent a pack increase. From a Real Estate perspective, it will not change the purchase price of a resale home but it will impact all the ancillary service fees such as lawyer and Real Estate fees, home inspections and all other services around buying or selling a home. Home Sales for the Month of June Official results from TREB are not in yet but our Office posted its best month ever. While most homes are no longer selling with multiple offers situations, houses are still selling well. Buyers have more choice with more listings available. If you are thinking of listing the timing in July and August is still great. If you are thinking of buying, you now have more choice and less pressure. I posted this Blog on June 21st and received so many comments that I am sharing it in this newsletter. Toronto, Canada, June 21, 2010 A Cautionary Note for Domestic Confidence I have tried lately to stay away from including my views on where our economy is going because (my wife says) I am too pessimistic. However, there are things happening in the world from an economic perspective that creates a concern for the future. I leave it up to you to decide how long it will take before these events affect us locally and especially the public’s perception regarding their ability to buy or sell a home. A small increase in the Bank rate and a small increase in the cost of a transaction have already spooked buyers. Here is what is happening: 1. Canadian trade confidence is at one of the highest readings on record (78.8). However, behind that number are several factors that need to be reviewed. A. Canada’s robust market is where exporters are focusing their efforts and they are realizing sales here while actual export sales are relatively weak. B. Government infrastructure spending is now at its peak which is bringing a lot of additional sales, profits and jobs into the economy and that will continue over the summer but drop off significantly in the fourth quarter and beyond. C. The Bank of Canada is extremely concerned about counting on robust growth. They continue to be “considerably uncertain” about the Canadian dollar, European debt issues and the slowing down of the Chinese economy as it relates to the Canadian economy. 2. China’s economy, after the Government put billions into a stimulus package, is slowing down fast. Automobile sales, real estate transactions and manufacturing have all plummeted; credit has been tightened because of rampant speculation in real estate; and an obvious sign – electricity demand has slowed significantly. China’s economy is a large participant in the world economy – as shown by how it helped buoy up everyone else during the recession with a 17% increase in output. A 10% drop in China’s GDP will have a major impact on the world economy. 3. The Eurozone is now facing up to systemic economic problems in some countries. Socialized benefits and low retirement ages are creating a situation that is not sustainable in the long term. Spain, Greece, France and even Germany are being forced to tackle these systemic issues to ensure long-term solvency. It will take a few years to get it all sorted out. 4. US unemployment numbers are rising again; housing starts are going down again and the foreclosure issue in real estate hasn’t really changed over the last two years in spite of major efforts by the Administration. In the short-term Canada has a stop gap due to increased domestic sales. In the near- term we should probably start saving up for a rainy day coming sooner rather than later. The one thing I don’t know is how long each of these economic hurts will take to affect us here. The one thing I do know is that Stephen Harper (regardless of his political affiliation) is an Economist by education and understands the mistakes of the past; Mark Carney is one of the brightest Bank of Canada Governors we have ever had. Between the two of them they have been making all the right thoughtful decisions to ensure our economy is being helped by Government policy and actions. Leslieville, Danforth, Riverdale, The Beach, Woodbine Corridor, Greenwood-Coxwell, (Toronto, Canada) Ken Campbell MBA, Real Estate Sales Representative Residential, Commercial, Investment Real Estate Homeward, Brokerage 1858 Queen St. E., Toronto, ON M4L 1H1 416-466-2090 F: 416-693-4284, Direct phone: 416-553-6376, kencampbell56@gmail.com, http://www.kaceeyteam.ca Referrals are always welcome and appreciated!

Comments (1)

Marcia Hawken
WILLIAM RAVEIS - Naples, FL
Naples Luxury Specialist

Thanks for your update on the market in Canada.  As a former Torontonian, I like to keep on top of things. 

Jul 08, 2010 11:26 PM