Cost of New Homes in BC to increase 7% in 2010

Here is some information I received today from the British Columbia Real Estate Association

On July 23, 2009, Premier Gordon Campbell and Finance Minister Colin Hansen announced that, effective July 1, 2010, BC will adopt a Harmonized Sales Tax (HST), combining the seven per cent Provincial Sales Tax (PST) with the five per cent federal Goods and Services Tax (GST) for a single sales tax rate of 12 per cent.

An additional seven per cent tax will be charged on a variety of real estate related services, including commissions, appraisals and other services that are currently exempt, as well as adding thousands of dollars in additional costs to new home purchases.

Looking to offset the increase in costs, the Government of BC plans to offer a partial rebate of the provincial portion of the HST for new housing to ensure that new homes up to $400,000 will bear no more tax than under the current PST system, while homes above $400,000 will receive a flat rebate of about $20,000.

New home sales over $400,000 will be dramatically impacted, as buyers will now have to pay an additional seven per cent tax (even with the $20,000 flat rebate). This will act as a disincentive to buyers of new homes in the short term.

So.. if you are at all thinking about getting into a newly constructed home in the next two years.. consider the savings that can be yours by making a purchase now, and keep money in your pocket.

With low interest rates and buyer incentives, and prices starting to rise again,now is the time to consider getting into your next home - because next year it will cost you more.
Remember - the time to buy is when you can get the best deal.. not necessarily when the price is the lowest.

We have all the latest real estate market information, as well as access to great lender programs and quality new construction homes.

With warmest regards.
See you online,
Brell ~ Brenda Ellis REALTORwith Okanagan Heat @ Century 21 Executives Realty Ltd

Increased Prices, Steady Inventory and Consistant Sales Volume tell the North Okanagan Residential Real Estate Story for June 2009

Here is our preliminary North Okanagan Real Estate Market Update for the month of June, 2009. Sales were strong, and for the first time in a long time we saw and appreciable number of homes valued at over $500,000 sell. The median or middle of the market price appears to be on the rise and inventory levels are remaining stable. Click here to see our 2 year rolling recap to give you some perspective on how the market in North Okanagan Real Estate has and continues to change.

Meanwhile.. here is our Cool Little Update Electronically for the past month:
Residential

New Listings
192
Listings Sold
100
Median Price
$373,000
Range
$120,000-$1,425,000
Days to Sell
82
Range Days to sell
8 - 416
Inventory
751
Hottest Neighbourhood
Coldstream

Condo / Apartment

New Listings
25
Listings Sold
11
Median Price
$175,000
Range
$125,500 - 290,000
Days to Sell
158
Range Days to Sell
13 - 158
Inventory
154
Hottest Neighbourhood
35th Street

Condo / Townhouse

New Listings
68
Listings Sold
29
Median Price
$270,000
Range
$162,500-$565,000
Days to Sell
138
Range Days to Sell
2-502
Inventory
242
Hottest Neighbourhood
City of Vernon

Building Lot

New Listings
40
Listings Sold
8
Median Price
$152,500
Range
$125,000 - 243,400
Days to Sell
190
Range Days to Sell
0-406
Inventory
392
Hottest Neighbourhood
Foothills

We are about to embark on a neighbourhood update on what has been happening from January to June so check back soon to see how things are changing in your neighbourhood.. or the one you want to move to!
With warmest regards.
See you online,
Brell ~ Brenda Ellis REALTORwith Okanagan Heat @ Century 21 Executives Realty Ltd

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