In a recent article, CBC News looks at the effects of the Foreign Buyers Tax (FBT) on the Metro Vancouver Real Estate Market since inception in August of 2016 through 5 key metrics that demonstrate that the FBT has not led to affordability.
Single Family Home Prices – While the price of detached homes did fall throughout the region after implementation “figures have crept back up since then in Vancouver and adjacent municipalities” to the level that they were prior to the FBT.
Apartment / Multi-family Home Prices – “Whatever freeze happened for detached homes didn’t apply to apartments. Since the FBT was implemented, the median prices of apartments in Vancouver, Richmond and Burnaby have risen by between 22 and 29 per cent.”
Everything is up in the Suburbs – There was distinction between single family and multi-family in the suburbs, where after a slight pause following the FBT, prices continued to increase steadily thereafter. “Last month several milestones were hit for median prices in areas further from Vancouver – detached homes eclipsed a million dollars for the first time in Squamish, Surrey Central and Port Coquitlam, while in Abbotsford, the median apartment price broke the $250,000 barrier.”
Increased Overall Activity – Looking at new listings and number of sales can be looked at as an indication of how hot or cool the market is. These numbers have increased significantly from one year ago, with “October sales of homes and apartments up 20 to 50 per cent from the previous year, depending on the region.”
Foreign Buyers Increasing – “Against this backdrop is the increase in foreign investment for residential real estate” since the dramatic initial drop. Prior to the tax, the only figures the government gave on property transfers involving foreign nationals came over a five-week period on June and July in 2016. Last week, the government provided updated numbers revealing an upward trend in the last year.
To read this article and review the metrics / stats please visit CBC