Month: March 2017

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Ontario REALTORS® one step closer to achieving tax fairness

Ontario REALTORS® are one step closer to being able to form personal real estate corporations (PRECs) under Bill 104, the Tax Fairness for Realtors Act, 2017. The Bill passed second reading today, which means it is moving onto the final stage of debate before a final vote determines if it becomes law.

Ottawa, ON, March 23, 2017 – Ontario REALTORS® are one step closer to being able to form personal real estate corporations (PRECs) under Bill 104, the Tax Fairness for Realtors Act, 2017. The Bill passed second reading today, which means it is moving onto the final stage of debate before a final vote determines if it becomes law. The Ontario Real Estate Association (OREA) launched a campaign earlier this month encouraging MPPs to support the Tax Fairness for Realtors Act via its website RealtorTaxFairness.ca.

“Realtors are community leaders and hard working small business owners,” said Rick Eisert, President of the Ottawa Real Estate Board. “Having the ability to form a personal real estate corporation will allow them to invest in new technology, plan better for the future and create jobs in the community by hiring more staff.”

A 2015 study by the Centre for Spatial Economics (C4SE), found that personal real estate corporations would have a positive economic benefit for the province. Specifically, C4SE’s report found that PRECs would create between 33-89 net new jobs annually and contribute between $9 to $25 million annually to Ontario’s GDP.

“OREA is working to make sure Ontario Realtors are treated fairly,” said Ettore Cardarelli, President of OREA. “Most professions in Ontario have the ability to form personal corporations, but not Realtors. This legislation is about giving Realtors the same business rights as everybody else.”

A technicality in the Real Estate Business Brokers Act, 2002 currently prevents Realtors from forming PRECs. Other regulated professions in Ontario, including accountants, lawyers, health professionals, social workers, mortgage brokers, insurance agents, architects and engineers, can all form personal corporations. British Columbia, Québec, Manitoba, Saskatchewan, Alberta and Nova Scotia have moved to allow real estate salespeople to incorporate.

The bill was reintroduced last week by PC MPP Todd Smith and co-sponsored by NDP MPP Catherine Fife & Liberal MPP Mike Colle. OREA is continuing its call for action encouraging Realtors to contact their local MPP in anticipation of the third vote. Realtors can send an email to their MPP by visiting RealtorTaxFairness.ca.

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Spring market is primed for competitive season ahead

Members of the Ottawa Real Estate Board sold 1,010 residential properties in February through the Board’s Multiple Listing Service® System, compared with 908 in February, an increase of 11.2 per cent. The five-year average for February sales is 872.

“Numbers continue to indicate a positive trend for Ottawa as a whole,” says Rick Eisert, President of the Ottawa Real Estate Board. “Even with the additional day in February last year due to the leap year, sales this year are up in both the residential and condo property classes. Keep in mind though, that all real estate is local, and that prices and conditions will vary from neighbourhood to neighbourhood.”

“A total of 2,066 homes were listed this month, up almost 25 per cent from January, while inventory on hand still remains low compared to last year,” explains Eisert. “Now is a great time to list your home in anticipation of the increase of buyer interest in the spring that will pick up as early as March.”

February’s sales included 233 in the condominium property class, and 777 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, townhouse, etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

The average sale price of a residential-class property sold in February in the Ottawa area was $417,374, an increase of 8.5 per cent over February 2016. The average sale price for a condominium-class property was $258,397, an increase of four per cent over February 2016.

“This month revealed a larger average price gain in the residential property class than usual due to an increase in the number of properties sold in the $750,000 to $999,999 and over $1 million price range, similar to what occurred with condo prices last month,” explains Eisert. “For example, in the over $1 million price range alone, there was a significant increase in sales over last year; 20 units sold in 2017 versus 6 units in 2016. It is important to note that dramatic changes in the average sale price is not indicative of all property values. We encourage buyers and sellers to talk to a REALTOR® for more information about the housing market outlook where they live, or want to live.”

“In the residential market the most active price point was the $300,000 to $399,999 range for the month of February, followed by the $400,000 to $499,999 range, combined accounting for 54.6 per cent of the market. The condominium market was most active in the $150,000 to $249,999 price range, accounting for 54.9 per cent of the market,” says Eisert. “In addition to residential and condominium sales, OREB members assisted clients with renting 392 properties since the beginning of the year.”