8 elm condos.The housing market in BC province of Canada is heating up again! The domestic property market is “heating up again” as home sales rose 8.6 per cent in a single month in October.Please Visit: 8 elm condos to Get Your VVIP Registration Today!
This is the largest monthly increase in transaction volume since last July, during the COVID housing boom in Canada. Home sales hit the second-highest monthly record in October, and benchmark prices across the country rose another 2.7% from a month earlier. The CREA reported that the Canadian real estate market has shown signs of slowing since June, but based on the current situation, it is likely to return to its spring peak.
Data show that the number of new homes on the market in Canada increased by 3.2% month-on-month in October, but with continued strong demand, all available inventory can still maintain only 1.9 months of sales. In terms of this indicator, it is close to the peak of the housing market this spring.
In November 2018, in response to the “housing crisis” in urban centers such as Dawen, namely rising house prices, unusually high rents and unusually low rental vacancy rates, the provincial government of BC promoted legislation to create a new tax project “speculative and vacancy tax” (SVT,Speculation and Vacancy Tax) for homeowners throughout the province, as a major means of stabilizing the housing market and rental market.
The tax was levied in 2018. So, after three years of levying, has the BC provincial speculative and vacancy tax achieved its design purpose?
The provincial government says SVT has worked because it has brought many vacant homes to market into housing, while in Dawen, the fact is that house prices continue to rise and rent rates have fallen slightly recently but are still high. Experts disagree on this, or say it is difficult to independently judge the impact of SVT on housing supply and market as well as rental housing stock.
Data from the Canadian Mortgage and Housing Corporation (CMHC) showed that a large number of investors converted their investment properties to long-term rental housing in 2019 and 2020 as a result of SVT, according to a “technical briefing” released by the BC Provincial Finance Department last week. This has led to an increase of 12455 long-rent housing units (including 18255 new rental units in other new growth) in the Greater temperature area. Of the 7137 housing units added to the long-term rental market in 2020, 3631 were “changed” by landlords to be listed for long rents.
SVT is now applicable in Greater Windsor, Victoria, Nanaimo and Kilona, with a tax rate of 2 per cent (foreign owners and satellite families) or 0.5 per cent (nationals of non-satellite families). The provincial government of BC stressed that through the collection of SVT, income has been increased by C $231 million (tax revenue of 81 million yuan in 2020) for the affordable housing construction task of the Provincial Housing Bureau (BC Housing).
Tom Davidoff, director of the Center for Urban Economics and Real Estate at UBC University and associate professor at Suntech Business School, said that SVT should have an impact on the real estate market, but it is difficult to study its impact separately because it works in conjunction with many other factors, such as the Vancouver City vacant House tax and the BC overseas buyer tax introduced at the same time.
