Tomorrow we’ll get a first look at how (or if) the foreign buyers tax has made an impact to cool down Metro Vancouver’s sizzling market.
It’s the day the Greater Vancouver Real Estate Board releases its sales data report for the month, and coincidentally it also marks one month since the levy was introduced.
So what can we expect?
While August typically sees a slump in sales, realtor Rob Chipman who analyzes daily MLS data, says numbers will be much lower this August compared to 2015.
“Yeah the numbers will be low, absolutely they will be low. Lower than last August, I don’t think that’s because of the foreign buyers tax. Everyone recognized that we’ve been experiencing a very strong market for quite a while and prices had gotten out of hand.”
He says when it does come to the tax, the downward pressure will be more a factor of some of the measure’s psychological spillover.
Chipman says the announcement caused panic among buyers, leading many to just take a temporary step back.
“Ask most realtors around town and they’ll tell you that when they are in competitive offers, which we were in, a very competitive market at least until late June, most of those buyers were locals and they were competing with other locals.”
Chipman says bringing in the tax caused a ‘breather.’ He also says that breather has come and gone.
He says don’t be surprised if sales surge right back up in the next couple months.
Last week, data revealed an 86% drop in sales for the first two weeks of August compared to the same time period last year.