Alberta’s new budget spares real estate market

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Most of the sales in the province are taking place in the mid-to-low price ranges. While this increased tax won’t necessarily stop people from buying, Ritter says it may take potential buyers a little longer to save up.
 
“(Buyers) are not going to say, ‘Oh that’s going to cost me another $1,000? I’m going to rent for the rest of my life’,” Ritter says. “It may take a little bit longer for people to save up what they need, but they’re still going to buy a home.”
 
Bamber agrees – sales are still happening, he says. But many analysts are still focused on the major year-over-year drop-offs that many markets have experienced: in February, Calgary sales fell off more than 34 per cent, while sales in Fort McMurray were down almost 65 per cent. Prices, however, weren’t affected nearly as much – they were down less than five per cent in Calgary, and actually rose in Fort Mac.
 
“I think everybody right now is just waiting to see what’s going to happen,” Ritter says, adding that little change to housing prices points to a market that’s not panicked. “But the good news is nobody is being irrational… Prices aren’t falling because there’s no panic. That panic is what causes prices to drop … and we don’t have that.”
 
That wait-and-see attitude is likely to carry on once the changes in the budget begins to be felt, and Bamber and Ritter alike think that calm among the market will continue even beyond that.
 
“People buy and sell for different reasons and if that added cost is going to change your mind from buying and selling, then so be it,” Bamber says. “I don’t think (the increased registration fees) will be a deterrence, but more an annoyance.”
 

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  • Len Lane on 2015-03-29 2:36:59 PM

    While it may not affect real estate it will increase closing costs for all buyer. They did saty away from land transfer taxes directly but these items below will add up for all buyer,

    ◾Land title search including online search: $15
    ◾Land Title Caveats: $35
    ◾Transfers and leasehold titles - Flat fee: $75
    ◾Transfers and leasehold titles - variable fee per each $5,000: $6
    ◾Mortgages- Flat fee: $75
    ◾Mortgages- Variable fee per each $5,000: $6

    Just means buyers need to pay more attention to closing costs when they are buying.

  • Ontario broker on 2015-03-29 5:58:32 PM

    Are you kidding Len? Come to Toronto where there are 2 land transfer taxes. And you are complaining about $6?
    Shake your head

  • Len Lane on 2015-03-29 7:07:40 PM

    LOl..no name no surprise. read 6 dollars for 5000 adds up but we have lived in the land of the free for a long timer. Yours must be the result of the to many liberal and ndp government. Well at least no sales tax and stil the lowest income tax in Canada.

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