A survey released Thursday morning found that Ontarians and British Columbians are confused about how the HST affects real estate transactions.
Almost half of the 765 realtors that participated in the survey conducted by Royal LePage Real Estate Services said that confusion about the HST remains more than one month after its introduction.
Eighty-six per cent of respondents said the HST is affecting their business somewhat.
Forty-four per cent of realtors polled in Ontario and B.C. said the HST is having the greatest effect on the cooling residential real estate market, compared with just 28.4% who cited rising interest rates as having the greatest effect.
The HST applies to the purchase price of a newly-built home as well as fees for services and commissions related to any real estate transaction.
However, the HST does not apply to the purchase price of resale homes, which comprise the bulk of transactions in the Canadian housing market.
Twenty-four per cent of survey respondents said home buyers and sellers have a low level of awareness about how the HST applies to a home sale transaction.