The HST, which is coming to BC and Ontario on July 1, 2010, will raise the cost of home ownership notably.
Not only will the cost of a new home priced at more than $525,000 increase, but all services related to a real estate transaction will also cost 7-8% more–including fees for appraisals, conveyancing and property inspections.
MBABC President, Joe Santos, feels that this may force potential home buyers (especially first-time buyers) to:
Purchase less expensive homes
Postpone a purchase due to the higher transaction costs.
These are factors to watch because first-time homebuyers provide considerable support for home prices.
Fact of note: The vast majority of BC and Ontario citizens believe the HST is inequitable. Story / Survey