Despite the lingering uncertainty about our economy, we continue to see considerable strength with upper end property sales throughout our area in 2010.

  Through the end of October, property sales over $1 million reported through the MLS® system of the Georgian Triangle Real Estate Board are up 92%, totaling 25 sales this year as compared to 13 in the first 10 months of 2009.  There have been 17 sales between $1 and $1.5 million so far this year, up from 10 last year representing an increase of 70%.  More significantly, sales over $1.5 million total 8 compared to just three last year a whopping 167% increase. 

  The highest sale to date was a post and beam ski home/chalet in the Blue Mountains which garnered a $2.55 million sale price was 94% of the $2.7 million list price.  If you think that's high, we have a long way to go to match the sale of a ski area property in Aspen Colorado.  A sale recently closed in Aspen for  West Buttermilk Ranch at $31.5 million, the highest price paid in 2010 for an Aspen area property. 

The 44 acre estate includes a 13,877-square-foot main house with two master suites, four guest suites, five full baths, and four half baths.  It also features a 4,517-square-foot, eight-stall horse stable a 1,112-square-foot guest house with two bedrooms and a one bath, a great room with a large fireplace, “old-world” wood, steel beams and large plank floor, a bar and service area for entertaining. a private office with fireplace, bath, shower and deck, a private guest suite with three bedrooms and a lower level media room including a wine room with a tasting table.

While million dollar sales are on the increase, I don't think I'll live long enough to see a sale of this magnitude in our area.  In ski country there seems to be a direct correlation between the size the mountain and the price of properties proving yet again, size does matter.

Changes to the MLS® System Now Offer Sellers More Choice

As noted in my prior posting, forthcoming changes have been adopted and approved by the Canadian Real Estate Association and the Competition Bureau regarding the listing of properties for sale on the Multiple Listing Service (MLS®.)
Media reports have greatly exaggerated or misinterpreted the impact of these changes which appears to have confused both consumers and REALTORS® alike.  In essence, the most significant of these newly adopted changes is that should a seller so desire, a REALTOR® may for a modest fee or even at no charge, simply list a person's property for sale placing the listing on the national MLS® system, period!  In doing so, the REALTOR® will provide no other service(s) typically performed by a REALTOR® with respect to completing a real estate transaction. With no additional services being provided by the REALTOR®, no additional monies or "commission" will be payable other than the original listing fee should a sale take place unless agreed to by the seller.
  These changes now permit REALTORS® to offer perhaps a choice of services "cafeteria style" with the intent of giving consumers more choices and the opportunity to save money should they choose to handle all or some of the selling activities on their own.
  Contrary to some beliefs, sellers do not have direct access to the MLS® system meaning that the MLS® system is still a REALTOR® to REALTOR® service.  In order to protect consumers, REALTORS® will still be required to provide and verify all relevant information regarding a property that is being posted to MLS® such as its room sizes, the annual taxes, amenities, features and any other material information pertaining to a given property.  REALTORS® and home owners for that matter are also required to disclose any known defects regarding a property that may impact a buyer's decision to purchase. REALTORS® are in fact required by provincial law and through a Code of Ethics to be responsible for the accuracy of all information given to consumers and REALTORS® are also required by law to maintain errors and omissions insurance to cover themselves in the event a mistake is make.
  Should a seller wish only to have the their property listing "posted" on the MLS® for a fee, the seller will be responsible for any and all other activities related to the sale process. This may included supplying their own signage, property photos, holding their own Open Houses, incurring all advertising costs and lastly they will negotiate their own sale either with a buyer directly or with the buyer's REALTOR® should they have one to which they will pay a commission of some sort.
Should they elect not to do so, REALTORS® are not obligated to post a listing for a fee. "Posting" fees like commissions are not set and are completely negotiable between the seller and the REALTOR® providing that service.  At the end of the day commissions will be negotiable as they have always been.  Sellers merely have the option of selecting a REALTOR® that will handle as much or as little of the selling process as the seller(s) wants and are willing to pay for.
The ultimate change with these new rules is that sellers can as desired handle as much or as little of the selling process on their own.  Through the ongoing involvement of REALTORS®, MLS® listings will still be subject to the high standards of listing accuracy that have always been in place making the Canadian MLS® system the envy of many other regions in the world.  For further clarification of these new rules and how they affect you, please do not hesitate to contact me and I will be happy to answer your questions or respond to comments.

Many Consumers Confused by the HST!

  Prior to implementing the Harmonized Sale Tax (HST) on July 1st, the province of Ontario did a very poor job of communicating what this new tax was all about and where it did and did not apply. 
  As consumers we were all loathe to the idea of yet another tax increase and rightly so.  The HST has taken a bite out of all of us and has no doubt played a role in slowing our economy in recent months.  Where I noticed it particularly was at the gas pump. Prior to the arrival of the HST, $20.00 worth of gas included $.95 for GST.  Put in $20.00 now and the HST portion is $2.30! 
Prior to the HST's arrival, I had numerous conversations with seller clients one of whose home is worth over $2 million, all bemoaning the impact HST was going to have on their net sale proceeds.  The Ontario Real Estate Association recently commissioned a survey via Ipsos Reid the results of which revealed that 56% of Ontarians mistakenly believe that the new Harmonized Sales Tax (HST) applies to the full purchase price of a resale home.
 The fact is, the HST is only applicable on the various transaction costs associated with the purchase of a resale home that has been previously occupied. Lawyer's fees, real estate commissions, home inspection and appraisal fees are all HST taxable.  The purchase price of the home itself is not!  With that said, we do have some unique examples in our maket where the HST may apply on the purchase price and this bears close scrutiny.  Many condominiums at Blue Mountain and particularly in the Intrawest Village may present some tax implications.  Many of these properties are titled in company names and are also in rental programs from which income is derived.  These specific situations require due diligence on behalf of a buyer and their REALTOR® with the appropriate clauses and or conditions included in an Agreement of Purchase and Sale.
  If you are a Buyer or a Seller contemplating a real estate transaction in the near future and have some reservations about the HST and other tax implications or require some assiatnce regarding current market conditions, please feel free to contact me without obligation with your questions.