Metro Vancouver and Housing Affordibility–

Now , remember that the BC Government instituted a Foreign Buyers Tax of 15% on housing in Metro Vancouver August 5 of last year . Reason : got to get those prices down !

Well don’t hold your breath! While sales have decreased ( 42% year over year, February to February)) significantly ,  the price of  a unit has not decreased  significantly. In Metro Vancouver the benchmark price for all residential properties was $906,700 down a mere 2.8% over the last six months. Don’t think that is enough for the so called affordability to kick in. And that there is a 1.2% increase over January 2017 to February 2017. 

And for detached proprties the price at the end of February was $1, 474,200 down 6.5% in six months and no decrease January to February 2017.

So , anyone looking for more Government ‘interference ‘ in the market place relative to housing prices , please take note. If the first six months is any indication  the Government’s goal is just that, a goal likely to be unrealized. Given the January /February 2017 numbers it looks like prices haver already stabilized not far from where the prices were when all the hysteria erupted.

Do you  think those who could not afford to buy last August can afford to now ?

Of course not!

Do you think this was political grandstanding ?

Of course!

But that’s not all. What has happened outside Metro Vancouver?

Victoria prices are up 21% , and the rest of Vancouver Island up 18%, Nanaimo up 24%.

So not only has the affordibilty in Metro Vancouver not happened but the silly tax is likely to be one of the factors in the increases nearby as demand shifts from the taxed area to the untaxed area.

Thanks Premier Clarke !

 

 

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One thought on “Metro Vancouver and Housing Affordibility–

  1. I so rarely disagree with you but I have to today. While I think the tax being “regional” was foolish in the extreme and will only transfer the problem to southern Vancouver Island, I know from experience of real estate in the Okanagan in the 1990s that if sales continue to drop, prices will inevitably come down. It will take a while to get started but once it does, look out.

    Hope this finds you well and happy.

    Christine Clarke

    Like

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