Foreign tax hurting realtors but not homeowners as Metro Vancouver sales dive, prices unchanged

Home sales down 33 per cent since 15 per cent tax kicked in, detached house benchmark flat at $1.58 million

Sales of Metro Vancouver homes have plunged since the B.C. government imposed a foreign buyer tax in August, but new statistics show prices have only flattened, rather than falling.

The Real Estate Board of Greater Vancouver reported a nearly 33 per cent dive in home sales in September from a year ago.

That’s bad news for realtors whose earnings depend on commissions, but there’s no sign yet that government intervention in the real estate market is cutting prices or the equity of homeowners.

September’s benchmark price for Greater Vancouver detached houses was $1.58 million in September, unchanged from July, just prior to the 15 per cent foreign buyer tax taking effect in Metro Vancouver.

The detached house benchmark prices remains 34 per cent higher than a year ago.

Condos at a benchmark price of $511,800 are also unchanged from July, while townhouses are up about one per cent to $677,000.

The Greater Vancouver real estate board’s coverage area excludes Surrey, White Rock, Langley and North Delta, which are also subject to the tax but represented by the Fraser Valley Real Estate Board.

The Fraser Valley board also reported prices were generally flat in September while sales were down 24 per cent year-over-year.

The benchmark price of detached houses in the FVREB area was $879,200 in September, which is still up more than 37 per cent from a year ago and down 1.1 per cent from August.

The FVREB’s benchmark price of townhomes was $419,500 while condos were $249,800.

Federal finance minister Bill Morneau yesterday unveiled further measures to deter speculation in hot housing markets, including tighter mortgage qualification rules and a crackdown on abuse of the principal residence declaration to avoid capital gains tax.

More to come

Just Posted

Figures reveal spike in highway traffic jams between Abbotsford and Langley

Nearly one in 20 westbound vehicles between Abbotsford and Langley clocked at under 60 km/h

Taser takedown in Chilliwack complex after incident gets violent

Male suspect became agitated under questioning and repeatedly punched an officer

Hang gliding video gives stunning view of Harrison and Fraser river confluence

Aerial view shows striking difference between two rivers as they meet

Young Chilliwack singer launches career with French classic

Deanne Ratzlaff performs as featured vocalist in La Vie en Rose in Chilliwack, London and Paris

The most h-i-l-a-r-i-o-u-s spelling bee you’ll ever see in Chilliwack

Secondary Characters Musical Theatre hits the stage with The 25th Annual Putnam County Spelling Bee

Rich the Vegan scoots across Canada for the animals

Rich Adams is riding his push scooter across Canada to bring awareness to the dog meat trade in Asia

Body, burning truck found near northern B.C. town

RCMP unsure if the two separate discoveries are related

Former Fernie Ghostrider re-signs with Vancouver Canucks

Josh Teves has signed a two-year contract with the NHL team

Couple found dead along northern B.C. highway in double homicide

Woman from the U.S. and man from Australia found dead near Liard Hot Springs

UPDATE: West Kelowna fawn euthanized, not claimed by sanctuary

Gilbert the deer has been euthanized after a suitable home was not found in time

BC Wildfire Service warns wet weather no reason to be complacent

Fire risk currently low for much of B.C. compared to same time over last two years.

Bank of Canada lowers qualifying rate used in mortgage stress tests

Home sales softened last year after the federal government introduced new stress test rules for uninsured mortgages

Trudeau says Ottawa open to proposals for B.C. refinery as gas prices soar

Prime minister says he knows B.C. residents are struggling and the federal government is open to ideas

Most Read