Housing in Canada is one of the biggest contributing Industry to the national GDP. With ever increasing population and influx of the immigrants, housing industry has not only been one of the strongest pillar of the economy but has a promising future despite the recession. There are so many complimentary businesses that thrive on the housing industry, such as building and repairing, home renovation and decor, furniture and electronics, etc. A slight dent on the growth of this important sector can have a serious rippelling effect.
It has been evident that time & again, Govt. of Canada and Ontario have burdened the housing sector with increase in land transfer tax and property tax. The housing activity has significantly decreased from last 4 months to about 40% and the recent TREB data show that even the average price of housing sales has gone down from same time last year. One of the reasons why last year the sales were recorded high even in the month of December was the Govt. incentive to waive land transfer tax increase. It is high time government realise that it is not wise to "Cut the Chicken that Lays Golden Eggs for more Profits". Govt. should not only take back the newly increased LAnd Transfer Tax, but also bring a halt to the increase in the Toronto property taxes starting year 2009.
Not only this, there concrete and targeted booster capsules need to be injected into the housing industry, to boost the confidence and activity. This will go a long way in reviving the entrire economy.