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

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

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

Harrison Hot Springs country singer Todd Richard poses for a photo with Mission firefighters. (Photo/Sarah Plawutski)
VIDEO: Harrison country artist Todd Richard plans for a busy, rockin’ summer

Richard and his band look to live shows as restrictions start to lift

The theme for this year’s Fraser Valley Regional Library Summer Reading Club is “Crack the Case” and Katie Burns, community librarian at the Chilliwack Library, is encouraging people of all ages to sign up. She is seen here at the Chilliwack Library on Friday, June 18, 2021. (Jenna Hauck/ Chilliwack Progress)
Crack the case, read, win prizes with FVRL Summer Reading Club

‘Immerse yourself in other worlds and have a bit of fun while you do it,’ says Chilliwack librarian

Cpl. Scott MacLeod and Police Service Dog Jago. Jago was killed in the line of duty on Thursday, June 17. (RCMP)
Abbotsford police, RCMP grieve 4-year-old service dog killed in line of duty

Jago killed by armed suspect during ‘high-risk’ incident in Alberta

Holger Schwichtenberg and his son Philip talk in the barn of the 150-acre Schwichtenberg farm. This farm is one of many throughout B.C. that support more than 12,500 jobs across the province in the dairy industry. (Contributed Photo/B.C. Dairy Association)
Agassiz dairy farm a model of care for environment, animals, and family

Farm is part of a dairy sector centred in the Fraser Valley, supporting 12,500 jobs province-wide

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

FILE – Most lanes remain closed at the Peace Arch border crossing into the U.S. from Canada, where the shared border has been closed for nonessential travel in an effort to prevent the spread of the coronavirus, Thursday, May 7, 2020, in Blaine, Wash. The restrictions at the border took effect March 21, while allowing trade and other travel deemed essential to continue. (AP Photo/Elaine Thompson)
Feds to issue update on border measures for fully vaccinated Canadians, permanent residents

Border with U.S. to remain closed to most until at least July 21

A portion of the George Road wildfire burns near Lytton, B.C. in this Friday, June 18, 2021 handout photo. THE CANADIAN PRESS/HO, BC Wildfire Service *MANDATORY CREDIT*
Blaze near Lytton spread across steep terrain, says BC Wildfire Service

Fire began Wednesday and is suspected to be human-caused, but remains under investigation

(Black Press Media files)
Burnaby RCMP look for witnesses in hit-and-run that left motorcyclist dead

Investigators believe that the suspect vehicle rear-ended the motorcycle before fleeing the scene

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Blair Lebsack, owner of RGE RD restaurant, poses for a portrait in the dining room, in Edmonton, Friday, June 18, 2021. Canadian restaurants are having to find ways to deal with the rising cost of food. THE CANADIAN PRESS/Jason Franson
Canadian restaurateurs grapple with rising food costs, menu prices expected to rise

Restaurants are a low margin industry, so there’s not a lot of room to work in additional costs

RCMP crest. (Black Press Media files)
Fort St. John man arrested after allegedly inviting sexual touching from children

Two children reported the incident to a trusted adult right away

Most Read