October 6, 2016
Housing Market Insights, Vancouver CMA
On July 25, 2016 the BC Government announced an additional property transfer tax of 15% on Metro Vancouver home sales to foreign buyers, effective August 2.
Offshore buyers are just one of many factors contributing to Vancouver home prices, including economic and demographic fundamentals driving demand and housing and land supply constraints. While it is too early to determine long-term impacts of the Foreign Buyers Tax (FBT) on the Vancouver housing market, preliminary analysis of resale market data suggests a consolidation of trends in the market, which pre-dated the introduction of the tax.
- These trends included a slowing pace of sales, an ongoing market shift to more condominium sales and a continuation of the downward trend in average prices.
- MLS® sales declined following the start of the tax, continuing an already established trend, particularly at the higher end of the price spectrum.
- While MLS® HPI Benchmark prices have remained stable, average prices continued to decline following the introduction of the tax, partly due to a change in the mix of homes sold.
Read the full report — Housing Market Insight, Vancouver CMA