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Investor: Don’t credit foreign sales tax for cooling market

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Canadian Realestate Magazine | 05 Oct 2016, 08:15 AM Agree 0
Following two months of slagging sales in Canada’s once-busiest market, one professional is arguing the recently implemented foreign sales tax isn’t entirely to blame
  • | 05 Oct 2016, 11:36 AM Agree 0
    Slagging or sagging sales ?
  • Brad | 05 Oct 2016, 12:17 PM Agree 0
    I agree that the reduction in sale volume is a combination of reduced foreign buying and local buying... but your argument of reduction in year over year sales volume for August and September being caused by people vacationing in August of this year doesn't make sense (unless people didn't take vacations in 2015:) )... The same average percentage of our residents would have, of course, vacationed last year as well as this year.
  • Cory O'Brien | 05 Oct 2016, 04:45 PM Agree 0
    I agree. As a Tri-City Realtor, I could feel the market slowing in July, which was a nice reprieve, and I was able to get away quite a bit this summer. As well, many of my clients and colleagues . However, I have been involved in 6 multiple offers since the third week of August, with attached properties. I am finding it still very busy...just not as many people involved in the Multiples. I definitely don't think that the 15% Foreign Buyer Tax was the sole cause of the slowing market.
  • WP-Realtor | 05 Oct 2016, 06:47 PM Agree 0
    Attributing a slowdown to vacationing buyers which is incorporated into the numbers each year?!...That's a bit of simplistic analysis but nice that you made the effort to put any kind of a positive spin on the bubble in the market that the foreign buyers tax has clearly caused.

    While tri-cities is a different animal with relative affordability for local buyers the Downtown/Westside markets (where most foreign buyers play) has 'popped' (sales at this point) and without argument, 99% of it is due to the new tax (PERIOD!)

    Not only have the foreign buyers moved $$ to the likes of TO and Seattle, local buyers/investors are now playing 'wait and see' looking for downward price adjustments/approving affordability. Uncertainty breeds uncertainty.

    One thing is for certain, rents are surging upward so investors should stay active seeking out opportunities.

    Stay Posted

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