Morning Briefing: Homebuyers in this city hit with a new 15 per cent tax

by Steve Randall26 Jul 2016
Homebuyers in this city hit with a new 15 per cent tax
Americans buying homes in Metro Vancouver will be hit with a new 15 per cent tax unless they are moving to Canada as a permanent resident.

The British Columbia provincial government announced Monday that it is introducing the new tax on all foreign nationals – including corporations – as part of a range of measures to tackle affordability in its largest city.

The lawmakers are moving fast too; the new rules come into effect on August 2 and is likely to apply to transactions that are currently in the process of closing, although realtors are calling for an exemption for those homes.

The move has been criticized by the region’s realtors’ body for its fast-implementation without industry consultation while others have questioned whether it will make much difference when low supply is a larger issue in the city.
 
California realtors report slowing activity
There was slower growth in floor calls, listing appointments, and open house traffic for Californian realtors in June according to the California Association of Realtors’ Market Pulse Survey.

The share of homes selling above market price was down to 35 per cent from 38 per cent in May but the market remains competitive with 72 per cent of homes receiving multiple offers.

Realtors are less optimistic about the market over the next 12 months than they were in May.

Pending sales figures from CAR show a 3.2 per cent rise compared with June 2015 but down 7 per cent from May 2016. San Francisco led gains in year-over-year pending sales. 
 
Connecticut sales increase but prices are flat
New data from Connecticut Realtors shows a 7.4 per cent rise in sales of single-family homes year-over-year but the median price was unchanged in June. There were 4,098 single-family homes sold in the month.

Condos and townhouse sales were up 6.2 per cent, with a median sales price of $170,000 representing a 2.3 per cent increase from a year earlier.
 

COMMENTS

  • by objectiv1 | 7/27/2016 1:40:27 AM

    Hooray for the Vancouver city officials! 2 bad the American leadership does not have the integrity to support the average working homebuyer.
    The average family cannot compete with the wealthy flippers and foreign REITs in the quest for residential real estate.
    A house is not a casino chip, it is a home.

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