Push factor: Vancouver home sales fall as taxes on foreign buyers are implemented

Could wealthy would-be buyers be heading for NYC?

New York Weekend Edition /
Apr.April 15, 2018 03:24 PM

Vancouver. (Credit: JamesZ_Flickr, Pixabay)

The West Coast city’s efforts to stymie demand seem to have worked — at least so far.

Houses in Vancouver are selling at a five-year low with total transactions falling nearly 9 percent in March compared with the month before, according to Bloomberg. Prices, however, still inched up by just over 1 percent compared to February and were up a whopping 16 percent higher than the same month last year.

“We expect this market to begin stabilizing towards the end of the year, or in early-2019,” Toronto-Dominion Bank economist Michael Dolega told his clients.

In February, the provincial government introduced a higher tax on foreign buyers in addition to a levy on unoccupied homes as a means to stop speculative investing and normalize housing prices. One of the key groups affected by the new rules are Chinese home buyers, who were the sources of the majority of foreign investment in the market. Vancouver’s new costs could work to the advantage of other markets, such as New York City, who are facing similar pricing issues by generating more supply. [Bloomberg]Erin Hudson


Related Articles

arrow_forward_ios
Home prices surpass 2006 peak levels. (Getty, Unsplash, Photo Illustration by Alison Bushor for The Real Deal)
US home prices surged 9.5% in November
US home prices surged 9.5% in November
371 Clinton Street in Carroll Gardens and 6 Strong Place in Cobble Hill (Photos via Compass)
Townhouse sales dominate Brooklyn’s luxury market
Townhouse sales dominate Brooklyn’s luxury market
Gotham's Joel Picket and David Picket with 538 10th Ave. (Google Maps)
Gotham plans massive mixed-use building on Far West Side
Gotham plans massive mixed-use building on Far West Side
(iStock)
Forbearance rate stubborn among home-mortgage borrowers
Forbearance rate stubborn among home-mortgage borrowers
(Engel & Völkers Market Center, 432 Park)
Sugimoto-curated 79th floor at 432 Park quietly hits market
Sugimoto-curated 79th floor at 432 Park quietly hits market
(iStock)
South Florida hits record $5B in residential sales volume in December
South Florida hits record $5B in residential sales volume in December
Sharon Davis and 9 East 81 Street (Google Maps, iStock)
UES townhouse trades 40% below latest appraisal
UES townhouse trades 40% below latest appraisal
The average price of a London home rose above 500,000 pounds, or roughly $685,000, for the first time. (Getty)
London home prices hit new high
London home prices hit new high
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...