Nova Scotia’s real estate market is showing signs of strengthening.
The Nova Scotia Association of Realtors released new figures Tuesday showing the average price for home sales from May to July was $202,676, up five per cent over the same three months in 2008.

Association president Linda Smardon says the market is looking up.

"If we look at the month of June alone, Nova Scotia actually saw an increase in the number of sales as compared to June 2008," she said in a news release. "On top of that, sellers and buyers continue to be reassured by the strength of housing prices in almost all regions of the province."

A total of 3,492 homes sold through the Multiple Listing Service System in Nova Scotia from May to July 2009, down nine per cent from one year earlier. The total value of the homes sold was $707.7 million during the period, a decline of 5.2 per cent year-over-year.

NDP rolls out rebate for new houses

By DAVID JACKSON Provincial Reporter
Thu. Aug 13 - 6:12 AM

Home builders and homebuyers stand to benefit from a new tax break, Premier Darrell Dexter said Wednesday.

Buyers of newly constructed homes can now apply for a 50 per cent rebate on the provincial portion of the harmonized sales tax.

It’s a program the Nova Scotia Home Builders’ Association suggested to the three major political parties before the spring election.

The NDP put the program in its platform, but with a start date of May 1. The government has changed it to Jan. 1, at the association’s urging. A maximum of 1,500 rebates will be offered.

To qualify, buyers of new homes must have a municipal building permit dated on or after Jan. 1, 2009, and before April 1, 2010. The home must be the primary residence and construction has to be completed between Jan. 1, 2009, and March 31, 2010, or the purchase closed by March 31, 2010.

Cottages and income properties don’t qualify.

Mr. Dexter said the government changed the start date because the association was concerned that homes started between January and May might not have sold because the tax break came later in the year.

“They indicated that they had been working through the winter, trying to keep people employed, so . . . there were a large number of building permits between Jan. 1 and the May 1 date. The result of that, of course . . . potentially, would have been to strand that inventory," Mr. Dex ter said.

Speaking at a Dartmouth townhouse construction site, Mr. Dexter said there were about 600 permits issued in the province between January and May, although he didn’t know how many homes were under construction. Opposition leaders said the tax incentive sounds more like a reward.

“I don’t see it stimulating any activity that otherwise wouldn’t have happened," Liberal Leader Stephen McNeil said.

Mr. McNeil also said he is skeptical whether a $7,000 benefit will be enough to entice people making a $200,000 or $300,000 purchase. And he wondered whether home builders would increase their prices, negating the benefit of the tax break to the buyer.

Mr. Dexter said buyers will negotiate their prices, and he thinks competition will take care of Mr. McNeil’s concern.

“There are a lot of companies out there that are really looking to get work, so I expect there to be a very competitive market, and that this rebate will ultimately benefit those who are intended to benefit," he said.

Interim Tory leader Karen Casey said people now looking at buying a new home may be concerned that the 1,500 rebates will be gone by the time they apply.

Service Nova Scotia Minister Ramona Jennex said at the news conference that the website www.getyourrebate.ca will track the number of applicants and rebates.

Ms. Casey said the original intent of the program — to spur economic activity and keep tradespeople working — was good, but that doesn’t seem to be happening.

“I consider this now a reward, rather than an incentive," she said.

Andrew Holley, president of the home builders association, said he would have preferred the qualifying date go back to October, but he was still pleased with the new program.

“We didn’t get everything that we wanted, but it was a good compromise," Mr. Holley said.

Mr. Dexter said the NDP did its own due diligence on the proposal and decided the province could do it.

The province would forgo $10.5million if the maximum number of people gets the top rebate.

The maximum — $7,000 — kicks in for homes costing $175,000 or more.

“I don’t think there’s anything wrong with listening to the stakeholders who are involved in the industry, and thereby turn ing the wheels of the economy," Mr. Dexter said.

“That’s really what we’re here for, to try and make sure that we get through what is a very difficult economic time, try to recog nize the importance of the residential construction sector and make sure that we keep trades people working."

Mr. Holley said more than 20,000 people work in the residential construction industry across the province, while new housing accounts for more than $800 million in annual revenue.

A Canada Mortgage and Housing Corp. report released this week said housing starts, which include apartment buildings, were down close to 30 per cent in the province during the spring and early summer. In Halifax, the decline was 44 per cent.

Housing sales, provincewide, were also down by 14.5 per cent when compared to the same peri od last year.

More information is available at www.getyourrebate.ca, or by calling 424-5200 in the Halifax re gion or toll-free 1-800-670-4357.

Premier Darrell Dexter announced a one-time tax rebate on new homes Tuesday, a move intended to kick-start the construction industry.

"This is a program that benefits new homebuilders," the premier told reporters in Halifax Tuesday. ""It’s a program that benefits young, skilled tradespeople.

"It’s obviously one that will benefit the industry as a whole, but it will also affect suppliers, and of course the people who work for them."

Mr. Dexter said the rebate, equivalent to 50 per cent of the eight per cent portion of the HST, will be available to homeowners who have a municipal construction permit dated May 1 or later, and the building must be done before March 31, 2010. The rebate will be limited to a maximum of $7,000 and only 1,500 rebates will be available. He said the rebates will be first-come, first-served.

The premier said the number of rebates is capped in order to keep the program affordable. He said the overall cost could run as high as $10.5 million. He said some details, such as what the application forms will look like, still have to be worked out. The rebate is meant for primary residences, not cottages.

Mr Dexter said the promise, which his party made during the election campaign, originated with the industry itself, which had pitched the idea to various political parties.

Paul Pettipas, CEO of the Nova Scotia Home Builders’ Association, said they are pleased the NDP is following through on the election promise. He said homeowners and builders can already apply to Ottawa to have a third of the five per cent GST rebated.

Mr. Pettipas, who said construction of single detached homes was down about 44 per cent for the first six months of 2009, said he’s not concerned about the limit of 1,500 rebates.

"Let’s get the 1,500 first and then if we get the 1,500, that’s a problem I think we’d love to have and the government would love to have," he said in an interview Tuesday.

But Opposition Leader Stephen McNeil doesn’t see the rebate as much of an incentive.

"It’s a reward for people who are going to go out and do this work anyway," he said Tuesday. "In order to qualify for the $7,000, you are probably going to have to spend a couple of hundred thousand. That won’t determine whether or not you do the work or not."

And because of the 1,500 cap, there’s no guarantee of being one of the rebate recipients, he said.

Meanwhile, Tory Leader Karen Casey urged the government to act quickly to put the rebate program in place.

"Valuable decision-making time will be lost and the construction season will pass quickly while the NDP government works out the arrangements of this program," she said in a news release Tuesday.

Ms. Casey said over the past decade, an average of 2,900 new homes were built each year. She said the program should allow for more Nova Scotians to benefit.

"If the program runs out, then so does the incentive," she said. "Potential homebuilders need to know the criteria as soon as possible to determine if they are one of the 1,500 eligible."

IT is a mini-city within a city.

Despite the recession, a Halifax company unveiled its ambitious plan Tuesday for a new 526-hectare community development called The Parks of West Bedford that will eventually be home to 18,000 people in the Halifax Regional Municipality.

The development, touted as a place where people can "live, work and play," will be located between Kearney Lake Road and the Hammonds Plains Road, near Highway 102.

"We take it as a challenge. We are planning this very carefully," said Richard Miller, president of West Bedford Holdings Ltd., which has a green light to develop much of the land. West Bedford Holdings is a joint-venture between Clayton Developments Ltd. and Cresco.

"We have got very good support of our friends in the banking community, plus our investors and shareholders, and we will ensure that we don’t overextend ourselves. We’ve been at this a long, long time," said Mr. Miller, who is also president of Clayton Developments.

The development, expected to take 25 years to complete, is largely residential, but will include West Bedford Business Park. The 40-hectare park, which will take about 10 to 12 years to develop, is located right next door to lands already occupied by BlackBerry maker, Research in Motion. The new business park is being marketed to similar "knowledge-based" businesses.

The development will be worth hundreds of millions of dollars when complete, said Mr. Miller.

"To date, we have invested or committed over $42 million, and we are on the run now of spending an average of $10 million a year for the next five years because that is our forecast period, over five-year cycles. There are 600 person years of employment, which is important, because that is a stimulus in itself," he said.

Much of the land to be developed is currently untouched. When complete, the project will contain 20 per cent green space, which is twice the required amount, said Michael Hanusiak, who gave details of the development to a crowd of about 100 at the Diman Lebanese Centre on Kearney Lake Road on Tuesday.

A series of walking and running trails and roads will connect the development

"There are great opportunities to work with the natural environment," said Mr. Hanusiak, senior vice-president and general manager of Clayton.

The development will contain five residential neighbourhoods housing 18,000 people in 6,000 units. It will include all types of housing, from single-family homes to apartments. Northwood a, continuing care centre, is being built on the lands and is expected to open in the spring of 2010.

Residential lots, which are now being cleared, will be on sale in October. Sales "will take full flight in the summer and fall of 2010," Mr. Hanusiak said.

Green building materials and sustainable practices are being used, developers say.

Development is already approved for about 210 hectares of the land, said Taleb Abidali, a co-owner of Cresco.

"You will see things you don’t see in a complete city. People will be able to walk from their business to their residence," he said.

Some companies have already expressed interest in locating in the business park, but no names have been revealed.

"We have a few names we cannot mention. Some of them are big companies," Mr. Abidali said.

Roads in the business park are currently under construction, and the entrance to the business park will be off Gary Martin Drive.

The project will generate lots of new tax dollars and will "change the face of all of HRM," said Mayor Peter Kelly, who was present for Tuesday’s announcement.

There have been many years of community input into the development. Cresco bought the lands a few years ago from Annapolis Group Inc., and then formed a partnership with Clayton.

Tenders have recently been issued for construction of a new Highway 102 interchange, which is expected to alleviate traffic on the Bedford Highway, Mr. Hanusiak said. The interchange will also connect to Kearney Lake Road, which is expected to ease traffic pressures on the Kearney Lake Road and Hammonds Plains Road, he said.

Quest Realty recently acknowledged a special achievement of its' primary new home construction partner, Cresco, as celebrations continue for the builder/developer's 20th Anniversary.

To help recognize the occasion, a special multiple page insert appeared in The Weekly News. The folks at Quest were more than happy to pass along their best wishes.

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