To establish your property’s assessed value, Municipal Property Assessment Corporation (MPAC) analyzes property sales in your community and applies the Current Value Assessment (CVA) method, which is used by most assessment jurisdictions in Canada and throughout the world.

In addition to sales, MPAC looks at the key features of every property and may consider up to 200 factors when assessing the value of a residential property. Five major factors that account for 85% of the value are:

Property taxes are often overlooked factor for many people in Greater Toronto Area. However, when buying a home, property taxes are nearly as important an issue as the selling price of the home.

Home Buyers Beware!

Residential taxes in cities and towns across GTA & surrounding area may differ a lot. In some of the municipalities residential property tax rates are so high, that they will not only hinder you as the buyer, but also will most likely draw concerns when you attempt to sell your house.

Property Tax Rates Chart for 2008

Canada Mortgage and Housing Corporation (CMHC) has released their Second Quarter 2008 National Housing Forecast and Market Outlook. Here are Canada & Ontario resale market highlights:

Pace of Canadian home price increases to slow in 2008 and 2009

Despite a slowdown of MLS sales and a general ease on the market, demand remains strong by historical standards. For 2008 and 2009, growth in the MLS average price will remain above inflation. Prices will reach $323,000 (+5.1%) in 2008 and $333,500 (+3.3%) in 2009. Given the strong sellers’ market that prevailed in most regions in recent years, the MLS average price will have doubled between 2000 and 2009 in Canada.

Activity has been intense in the Canadian resale market in recent years

Sharply rising prices and record or near record sales volumes were common occurrences in most parts of Canada in 2007. This strong seller’s market has evolved, however, and has now become more balanced as the number of existing properties displaying “For Sale” signs rises and sales of existing homes levels off. For 2008, the demand will moderate. Existing home sales, as measured by the Multiple Listing Service (MLS), are expected to decrease by 8.5% to 475,900 units. In 2009, the trend will be similar with another decrease to 465,000 units (-2.3 per cent). MLS sales will step back given a moderating demand due to rising mortgage carrying costs.

Ontario resale home prices and new home construction activity

On October 11, 2007, following the 2007 fall Ontario election campaign when Premier Dalton McGuinty was re-elected, The Government of Ontario committed to add a holiday in February to increase the number of public holidays to nine per year. Recognizing that Ontarians work very hard and deserve more time to spend with the people they love, they declared the third Monday in February Family Day.

This additional holiday gives Ontarians the same number of statutory holidays as Alberta and British Columbia. Family Day is also recognized in Alberta, Saskatchewan and several other countries across the world including South Africa and Australia.

In honour of this new holiday, many Greater Toronto Area attractions are offering special promotions including 2 for 1 admission to the CN Tower, 50% off admission at The Toronto Zoo, and more. Check out Toronto.com for more great Family Day ideas and contact me for your FREE Toronto 2008 Calendar worth over $150 in Coupons for major Toronto area attractions!

Whatever you choose to do this Family Day, I hope you enjoy your long weekend. I wish you and your family a happy and safe holiday.

First Time Buyers of Resale Homes to Benefit From New Tax Measure

Effective midnight tonight, first-time buyers of Resale Homes in Ontario would be eligible for a refund from the provincial government of up to $2,000 of the Land Transfer Tax (LTT) paid. The refund was previously available only on new construction.

Ontario Expands Land Transfer Tax Refund Program

Finance Minister Dwight Duncan announced yesterday that the McGuinty government is giving all first-time homebuyers a break on land transfer tax by proposing to expand the Land Transfer Tax Refund Program to include purchases of resale homes.

Toronto City Council has approved a Municipal Land Transfer Tax (LTT) that will be levied on top of the Provincial Land Transfer Tax. The Toronto Real Estate Board (TREB) worked very hard to oppose the new LTT.

Google Gadget Calculator compares Ontario & Toronto Land Transfer Taxes

Feel free to add my Land Transfer Tax Calculator Gadget to your iGoogle home page to determine what Toronto LTT will cost you and see if it's time to consider moving to York Region and other 905 areas, where you pay only the Ontario Land Transfer Tax and get bigger homes for less money:

Resale home transactions in Greater Toronto Area reached unprecedented heights in the first half of August, up 17% from the same period in 2006. Richmond Hill was among the GTA areas with record MLS home sales activity:

• This month, Detached and Condominium Apartment sales in South Richmond Hill (MLS district N03) fueled an overall increased of 41% as compared to the same timeframe a year ago.
• Last month, transactions in Central Richmond Hill (MLS district N04) increased 77% over July 2006, due to a 100% increase in Attached / Row-House sales and strong performances in most other house types.

“The market has shown tremendous strength in recent months” said Toronto Real Estate Board President Donald Bentley. “Given that August sales have been brisk thus far and that the past four consecutive months have all set records, we are looking forward to a robust fall market.”

What Does Market Volatility Mean for Canadian Real Estate?

Canada Mortgage and Housing Corporation (CMHC) has just released their 3rd Quarter 2007 Housing Market Forecasts for Canada & Ontario. Here are some:

Ontario’s Resale Homes Market and other Highlights

• Prices of existing homes will grow faster than inflation, rising by 5.3 per cent this year and 3.4 per cent in 2008.
• Resale volumes through the Multiple Listing Service (MLS) will reach new heights registering 209,500 and 202,000 units this year and next respectively.
• Hamilton, Sudbury and London will be the hottest Resale Homes markets, with price gains above the provincial average.
• Condominiums will continue to gain popularity not only among younger home buyers, but also in the 65+ age group.
• Renovation spending will continue to grow strongly, exceeding 19 billion dollars this year and 20 billion dollars in 2008.

Alberta, British Columbia, Manitoba, New Brunswick, Ontario, and Saskatchewan have civic holidays on the first Monday in August.

In late April, approximately 4.5 million Ontario homeowners, condo dwellers, and apartment tenants received a 12-page booklet in the mail containing information, education and tips about how to conserve electricity. The booklet encourages Ontario residents to use the energy conservation tips and coupons to help reduce their electricity load. Undertaking small steps will reduce your electricity bill and save you money. This booklet also includes Instant Discount Coupons, which will be valid at participating retail stores throughout the province!

Please note, retailers will accept coupons that consumers download and print from this website. Take this coupon to a participating retailer and receive:

CTV Toronto: Opposition Leader John Tory wants the government to establish a provincewide registry for homes used to grow marijuana. More than 450 marijuana grow ops have been uncovered in Ontario so far this year, and Tory said the province has a responsibility to protect families who either live near the illegal operations or may move into the dwellings... Liberals have passed legislation allowing hydro companies to cut off electricity to suspected grow ops without notice, and allowing police to seize assets and use the proceeds to fight crime.