The speculation tax introduced by the British Columbia government is leading to a slowdown in the housing market according to a new report.
Sotheby’s International Realty Canada says that sales were down 24% over the summer and buyers’ concern over high taxes is starting to impact prices.
Its analysis of homes prices at $1 million and above found that all property types are showing weaker sales. Overall just 434 sales were recorded through the MLS in July and August.
In the $4 million and above sector sales dropped by a third to just 31 and condo sales fell 21% year-over-year to 162.
Brad Henderson, CEO of Sotheby’s International Realty Canada says the speculation tax is to blame and adding nervousness to the market.
“I think ‘fear of missing out’ has translated into the fear of paying too much if you’re a buyer, and the fear of selling too low if you’re a seller,” he told the Canadian Press.
Elsewhere, luxury sales increased in Montreal, Toronto, and Calgary.