Another month of data into the effectiveness of the foreign buyer’s tax comes out Tuesday, and one realtor suspects it’ll be a September of plunging sales.
Steve Saretsky tracks the data daily, and notes in many areas covered by the Real Estate Board of Greater Vancouver detached home sales were down.
He says it’s clear where September is trending.
“It’s a buyer’s market for the detached, sales were down from August and inventory was up.”
In particular, Saretsky notes Vancouver – East numbers had 67 detached home sales, which was the lowest on record for any September for the last ten years.
And in West Vancouver, September sales were at its lowest since 2008.
Saretsky argues the foreign buyer’s tax has, in the preliminary stages, done its job.
“It’s getting close to a balanced market, but it’s still a seller’s market.”
However, low-priced condo and townhome sales were still relatively strong, and Saretsky argues the foreign buyer’s tax is stemming the sale of the luxury homes.
“Sales have dropped significantly, we now have two months worth of data so I think it’s done it’s job in curbing demand primarily on the detached, more expensive homes. Right now though, we’re still seeing a lot of condo and townhouses as a seller’s market.”
Saretsky says October will be a key month of data to judge for certain how effective the tax is.