cabbagetowner
Active Member
we would be very lucky if the market stays flat. it's going to be hard to dodge a global bullet of this size. I think the june 2010 numbers will be less.
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As the public re evaluates the cost of borrowing, in relation to the additional HST starting next year, we could have a strong continuing summer and fall market.
On June 18, the Liberals announced that the HST will be a progressive tax and will only be on the amount of your purchase price above $400 000, so the tax burden, while still there, has been severely mitigated. Also, considering it only applies to new construction, i'm not sure this will affect many people's decision to buy. Chances are if you can afford $500 000, the extra $6000 in tax won't really matter.
I've been thinking about this some more.
At the beginning of June, 5yr fixed rates went up 10-15%. If someone looking to buy is pre-approved at the old rates (90 days?), then they've got a real motivation to buy within that window of time. Use it or lose it, correct?
That would suggest that we'll see noticibly lower figures in August, after the rush to beat the expiring lower rate guarantees ends in July.
So I'm going out on a limb and predicting that unless rates go back down, TO sales will hit a brick wall in August.