So the province is running scared these days. After trying in vain to pretend there is no problem, they are now desperate to fix it or at least act as if they are fixing it before the election. This time they have hit with a meaty sounding tax of 15% on home purchases by foreign buyers in the greater Vancouver area.
It’s funny though. At that thesis defense I went to they specifically said you have to apply any additional property transfer tax equally across jurisdictions or it will just push people to other areas and shift the problem elsewhere. A week later they implement a region specific tax and do exactly what was not recommended.
Look, either there’s a problem with foreign buyers or there isn’t. Just because the rest of the country hasn’t reached the insanity of Vancouver doesn’t make it any less of an issue. How about we try to fix the problem province-wide before it goes off the rails rather than after? Instead they are going to remain reactionary by shifting demand outside of Vancouver, then moving the tax around, or reducing it to try to bring some balance back. I can’t see how we won’t end up with more buyers in Victoria from this move unless it swiftly gets adopted here as well.
Also a weekly stats update courtesy of the VREB via Marko Juras.
|Wk 1||Wk 2||Wk 3||Wk 4|
|Sales to New Listings||75%||81%||80%||
|Months of Inventory||
Oh look we gained 5 listings last week!