Here’s a snapshot of the averages for Oakville’s sales data from OMDREB.
We’ve had the first increase in average sale price since March when we were at record numbers. A $110,000 decrease in average price between March and April and then another sharp decrease from May to June of $159,000 in average price. Volume has dropped also from the height of 451 units sold in March to 212 in August. The average price is up slightly from July to June. Days on the market is up to 33 average.
For the first time in years, we have a buyer’s market with 3 months of inventory. First time buyers have lots to choose from, but prices are still high, so our younger buyers still have to search elsewhere if they want to buy without a condo fee. The lowest price on a freehold townhouse in Oakville in August was $509,000 compared to the lowest price on a condo townhouse at $300,000 with a $563 condo fee.
September is historically an active market, and we’ll see what happens after everyone gets settled into school. We’re likely going to see an increase in the mortgage rates in the next few weeks after the positive Canadian economy reports that were released. And we’ve got Hurricane Irma bearing down, following Harvey that prompted our gas prices to shoot up about 10 cents a litre.
Enjoy the first day of school and drive carefully !
I am very proud to be associated with two Registered builders in Ontario. The first one is our family business (Belsito Homes) and the second is affiliated with my brokerage (Stonemill Developments Inc.). Both builders have zero conciliations and zero claims.
Being licensed and providing a Tarion Warranty isn’t optional. It’s the law! In Oakville, every legally built home has a Tarion enrolment number unless it was built by the homeowner, in which case there should be a Letter of Confirmation from Tarion (a new requirement for a building permit in Oakville). Oakville is one of the following municipalities that is working with Tarion in a pilot project to help prevent illegal building. No Tarion enrolment or Letter of Confirmation = no building permit.
- Greater Sudbury
- Middlesex Centre
- Niagara Falls
There are links to Tarion’s website below.
Builders who fail to register with Tarion can face legal action, resulting in possible convictions, heavy fines, and even jail sentences.
It’s not just the missing warranty that puts home buyers at risk. The Canada Revenue Agency will be looking for HST on a new build and there aren’t many ways to hide from the taxman, especially with easily traced documents on Real Estate Boards and Land Registry. CRA is currently targeting British Columbia’s illegal builders with audits and is hiring 85 extra staff to deal with the problem. It’s only a matter of time before the crackdown happens in Ontario. There’s a link to a CBC story about this below.
So it’s not the builder registration fee ($500) or the enrolment fee ($385 – $1,500) that the illegal builders are trying to save, it’s the underwriting and investigating that Tarion performs as part of the registration process AND it’s the 13% HST that they are trying to avoid paying along with income tax on the profit. Being registered with Tarion would put these illegal Builders on the radar with CRA.
See links for more information below:
Requirements for Building Your Own Home
Building Your Own Home in Ontario FAQ
Letter of Confirmation Application Form
CBC’s story about CRA crackdown in BC