Re/Max Canada says first-time buyer rebates are “inadequate” in Metro Vancouver’s high-end markets.
Homebuyers in Metro Vancouver may be choosing to leave the region rather than face rising home prices and the high taxes that come with housing.
That’s according to a new report from Re/Max Canada, which concludes that the tax burden falls heaviest on buyers in areas such as the city of Vancouver, where the average price of a single-family home was It was $1,942,400.
“Given the realities of today’s housing market, it’s no surprise that buyers are willing to travel across the country to achieve homeownership,” reports Christopher Alexander, president of Re/Max Canada. I mentioned it in the book.
“In addition to affordable housing prices and abundant employment opportunities, Alberta is well known for its tax stance, with zero provincial sales tax and zero land transfer tax on residential real estate. Like Ontario and British Columbia. “Cash-rich buyers such as Toronto and Vancouver are realizing that real estate sales in Toronto and Vancouver will extend further into major centers in Alberta and Atlantic Canada.”
Between July and September last year, 12,552 people came to B.C. from other provinces, compared to 17,186 people who left B.C. during the same period. According to Statistics Canada, this resulted in 4,634 people going to other provinces.
“Until a few years ago, people tended to move to the Okanagan to take advantage of lower prices, but in recent years, the increase in the number of people moving has increased home values in cities like Kelowna, Kamloops and Penticton.” the report states.
For Vancouver home buyers, paying taxes, fees and surcharges is a “cost of doing business.”
The report cites a provincial program aimed at reducing or eliminating real estate transfer taxes paid by new home buyers, and highlights that first-time buyer rebates are “inadequate” in Vancouver’s high-priced market. There is.
“Very few first-time buyers fit the current $525,000 threshold. Properties valued up to $499,999 are eligible for full forgiveness, and properties valued between $500,000 and $524,999 are eligible for partial repayment. Currently, the City of Vancouver has 43 properties for sale for $525,000 or less,” the report states.
More than one in four Canadians (28%) say land transfer tax influenced their decision to participate in the housing market, according to a mid-2023 survey conducted by Léger on behalf of real estate companies. did.
Additionally, 40% of Gen Z and 35% of Millennials surveyed said land transfer taxes are helping them pursue homeownership.
Editor’s note: This article has been adjusted to reflect that population data on the number of people leaving British Columbia is from July to September 2023, not the first three quarters of the year. it was done.