Market Slowdown was expected!

Market slowdown!
This was anticipated and I believe the market will pick up in September after kids have returned to school; most cottages are closed for the winter, summer vacation is over, teenagers have settled in university and nursery’s swing into full operation. There is a lot of preparation in August for the beginning of our fall routine which starts after the Labor Day weekend. If you are participating in any of the above it’s hard to divide your time into other activities. Real Estate has for the 24 years I have been selling is slow this time of year.
Now let’s add the implementation of the HST which slowed our market even more. The anticipation of the new tax caused a “run” on properties in the spring. Our market corrected for the extra activity through the summer same as it did with the implementation of the GST.
Utility surprises when we opened our bills in July with the new tax and remember Hydro announced in June a 17% increase. That takes a little getting used to!
TGSO, thank god summer’s over! and we return to a normal market.
Is our market going to take off and go crazy? No I think we are going to experience a steady balanced market. If you are selling make sure your property is priced right and you have followed “prepare you home for showing” checklist found at www.link2realty.ca/articles/PreparingYourHomeForShowing.pdf (copy paste in your browser)now is a great time to prepare for the after Labor Day movement!

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This is a copy paste from LSTAR Bulletin...exciting news

Home Ownership Assistance Program
Good news for your clients who are low-to-moderate income earners! This year, the City of London offers again the Affordable Homeownership Assistance Program. This successful program consists of an interest free loan for qualifying home buyers to assist with downpayment and closing costs.

To be eligible, households must have a gross household income of $55,000 or less, and must be approved for a mortgage at a recognized financial institution. The selling price of the home must be no higher than $140,000. New this year is an increase to the closing cost assistance, which has been raised to 3% from 1%.

The Homeownership Assistance Program is a partnership between the Government of Canada, the Province of Ontario and the City of London through the Canada-Ontario Affordable Housing Program (AHP) which offers people with low-to-moderate earnings the opportunity to purchase a home in London and Middlesex County.

The federal and provincial governments have set the deadline of December 31, 2010 to expend the funding allocated to the City of London. Call me for more details

90% Rule HST

CRA is offering HST seminar’s to help us understand the new charges and changes coming. I went to one last week hoping to learn something, meet new people and well you never know where your next listing or purchaser will come from! The course was highly informative I suggest you attend one. I am predicting a flurry of activity especially in the renovation business as we approach the HST start date July 2010. Real estate is affected. Anything that had GST is now subject to HST. That adds to the cost of selling a home and to the cost of buying a home.
Like anything there will be a transition. Today I am writing about the 90% rule. If 90% of the service has been performed before July start date then no HST is applicable. Say you list and sell a house in May conditionally. It firms up in June but doesn’t close until August 15th. As the listing agent 90% of your service or work has been completed before July 1st therefore no HST is applicable.
That makes sense to me but to be sure I suggest you document your work just in case 1 day 5 years later you are been audited. My opinion; a lot easier reviewing notes than trying to remember old sales.