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The Empty Home Tax (EHT) is a tax that applies to residential properties within the City of Vancouver. It is not the same as the Province’s Speculation and Vacancy Tax. As if this is not confusing enough, some call the EHT, the Vacancy Tax as well. Argh!!!The purpose of the EHT was to incentivize people to offer their empty properties as long-term rentals. So to be exempt from the tax you either need to live in it or rent it out for at least 6 months out of the year. Additionally, if it is rented out, it must be in blocks of 30 days or more. There are specific situations that will allow for an exemption to this, but for most people, the reason they

The real estate market trends in February continue to reflect those observed in January. It shows a remarkable year-over-year sales growth of 31%. However, this growth appears less significant when compared to the 10-year average, with this February’s sales being 23.3% below that benchmark. However, this is an improvement from last February, which was 33% below the 10-year average. As I wrote last month, the tide does seem to be turning. The inventory numbers are returning to normal levels. The number of newly listed properties for February is 0.2% below the 10-year average while the total number of listings are 3% above the 10-year average. From the chart below, you can see the trend in the sales-to-active listings ratio reverse. Sales-to-active listings ratio is a

In Vancouver’s real estate market, the January sales seem to have picked up significantly. It was 38.5% more than January of last year. That sounds bullish but last year was a terrible year. It was 42.9% below the 10-year average. This January the sales were 20.2% below the 10-year seasonal average. Not great historically but the trend does seem to be turning. The sales-to-active listings ratio have stopped falling after 7 months of declines. This ratio is a key market indicator, where falling values typically signal decreasing demand, and rising figures suggest the opposite. As you can see from the tables below that while demand has increased a little bit, the price direction is still generally down. But it is likely that the price trend

Happy New Year! I hope you had a great holiday season. The property assessments for British Columbia have been issued, and their updated values are now available on the official website. These figures represent the government’s valuation as of July 1st of the previous year. According to BC Assessment, in the Lower Mainland, the average home values have varied from the previous assessment by -5% to +5%. According to the MLS Home Price Index, the composite price for all residential properties in Metro Vancouver has seen a 5% increase over the past 12 months. This increase is somewhat unexpected given the market’s weakness in the latter part of the year. The sales volume for 2023 was 23.4% lower than the 10-year average. The number of

Real estate sales in Vancouver in November were 33% below the 10-year average for November. The rate of new listings has slowed from last month, but total inventory is still increasing due to slow sales. Total inventory is now 3.7% above the 10-year average, compared to just 0.6% above last month. The sales-to-active listings ratio has fallen across all categories. This ratio is a measure of supply and demand. A value between 12 and 20 is considered a balanced market, while below 12 is considered weak. Moreover, the trend of the ratio is a good indicator of price direction. When it drops, price momentum also falls. As evident from the table below, in the last six months, the sales-to-active listings ratio has been trending downward.

When you’re on the cusp of securing a mortgage, lenders may tempt you with a last-ditch offer: a chance to safeguard your family’s future with mortgage “life insurance.” It’s prudent to protect your loved ones, certainly – yet there’s a more cost-effective and comprehensive strategy than the insurance option from your bank. This product that banks promote is technically creditor’s insurance. Rather than a safety net for your family, it’s actually designed to repay the bank should you meet an untimely end. It’s a stark contrast to the peace of mind that comes with knowing your family will directly benefit from the policy. Furthermore, creditor’s insurance is evaluated at the time of claim, which means the certainty of coverage remains unknown until a claim is

Is owning your first home a possibility within the next 15 years? If yes, then activating a First Home Savings Account (FHSA) before this year winds down is a savvy move. Here’s the deal: contributions to your FHSA must happen within the calendar year to count towards that year’s taxes — unlike the RRSP which allows you to contribute in the first 60 days of next year. Kickstart your account with any amount, as the FHSA’s rollover perk lets you transfer up to $8,000 of unused contribution room to the following year. That’s right, open it now and you could funnel a substantial $16,000 next year if you contribute less this year. Every dollar you contribute slashes your taxable income, potentially pocketing you hefty savings

The real estate market in Vancouver, like the weather, continues to cool in October. The sales were 29.5% below the 10-year average for October. Meanwhile new listings are increasing at 5% above the 10-year average. This is slowly increasing the total number of listings in the market. It is a formula for lower prices. While the supply and demand picture look similar for the past 3 months, as measured by the sales-to-active listings ratio, for some reason townhomes and apartments eked out a month-over-month price gain in October. I don’t expect this to continue. The Bank of Canada and the Federal Reserves both held rates unchanged in their last meetings. Most market watchers believe this is the end of the rate hikes especially in light

The real estate market in Metro Vancouver has cooled drastically in September. Along with a substantial increase in new listings, prices dropped for all categories. The sales number for September was 26.3% below the 10-year average while the number of new listings was 5.2% above the 10-year average. Obviously, some sellers have waited long enough and needed to enter the market. With this combination, one would expect prices to drop and that is exactly what happened. As you can see from the table below the sales-to-active listings ratios dropped along with the month over month price. I believe this trend will continue. The yields on long-term Canadian and US government bonds have been going up all month and hit 16-year highs on Tuesday. This will