Vancouver Real Estate Market Update For January, 2023!

by Craig Veroni

Can a market update be both funny and informative?

Well, I give it a shot. There are 4 big announcements you don't want to miss in this month's market update video.

This is my one-minute update about the 4 most important things happening in the Vancouver real estate market right now.

I’ll go into more detail about these announcements in my full market update video but here are the highlights.

Ready? Let’s start the clock.

Number 1. On January 1st, the federal government instituted a Canada-wide ban on Foreign Buyer purchases for 2 years. This means only Canadian citizens or permanent residents will be allowed to purchase property in Canada for 2 years.

Temporary residents, work permits, non-residents who are married to residents/Canadians, diplomats and refugees are exempt from this ban.

Number 2. BC now has the Buyer Rescission Period for resale homes. Buyers can walk away from a purchase within three 3 business days after an offer is accepted.
However, Buyers will have to pay the seller 0.25% of the purchase price. ( That’s $2500 for every $1,000,000.)

Number 3. The Anti-flipping Tax. Any homeowner selling a property within 12 months of buying it will be considered “flipping” and profits will be taxed as business income.
There are exemptions for “life events” such as a divorce or death.

Number 4. The Speculation & Vacancy Tax expansion in BC. Now that rentals must be allowed in buildings, units that aren’t rented will be subject to the speculation/vacancy tax of 0.5% of the value and 2% for foreign owners per year, and in Vancouver, an additional 3% empty home tax annually.

This has been expanded to more areas and now includes Squamish, Lions Bay, and Ladysmith.

Did I go over a minute? Damn! Okay look you can’t blame me for not being able to cram all this information into 1 minute when the government hits us with 4 big changes at once.

Now, if you want to know something specific about your home, your neighbourhood, your street, or even your neighbour’s home, just message me below and I’ll get you all the details.

And, now here are the Real Estate Board of Vancouver’s stats and my attempt at making it as entertaining as possible.

According to the Real Estate Board of Greater Vancouver, home sales in the region have taken a nosedive, with a 51.8 percent decrease from December 2021 and a 19.8 percent decrease from November 2022. Last month’s sales were 37.7 percent below the 10-year December sales average. Yikes.

But what's the cause of this drop in sales? Well, it's a little something we like to call the "Bank of Canada's party-pooping policy rate hikes." Yes, you heard that right. The Bank of Canada has been raising rates left and right in an effort to bring inflation back to its target, and it's had a negative impact on home sales and prices in Metro Vancouver.

But don't worry, there may be a light at the end of the tunnel. Some experts believe the Bank of Canada could be winding down this tightening cycle.

Of course, rates may still remain elevated for longer than expected because inflation just won't quit. It's like that one party guest that just won't leave, even though it's 3 am and everyone else has gone to bed.

So, what does this mean for you, dear buyer or seller? Well, if you're a buyer, now is a great time to jump in. Don't wait for the bottom of the market, because it might not be as low as you think. And if you're a seller, it's crucial to have a top-notch agent with a killer video marketing strategy to get your home sold. Plus, make sure you're pricing your home at a fair market value for the current conditions.

Now I know the data sounds ominous and the media coverage will certainly colour it that way. The reality is that home prices have come down enough to mostly offset the impact of all the interest rate hikes and buyer demand is still strong.

We'll be keeping a close eye on the spring market to see if buyers and sellers have adjusted to the higher borrowing costs. Until then, stay tuned for more updates on the Metro Vancouver real estate market... and my attempts at making it funny. Thanks for watching!