Who would have thought, tax rates on foreigners matter?
The City of Vancouver currently has an average home price of $1.1 million, down 20.7% over the last 28 days.
The Financial Post reports:
[I]n Metro Vancouver’s real estate market, realty companies and real estate boards are reporting the first anecdotes of deals falling through as foreign buyers forfeited deposits on binding deals rather than pay the new tax. And they report evidence of local buyers withdrawing offers in expectation that the market will soften.-RW
Elton Ash, executive vice-president of Re/Max Western Region, said it is too early to accurately quantify how many deals fell apart, but he’s heard from realtors in some of the company’s 30 Metro Vancouver offices of cases where foreign buyers who couldn’t rearrange previously negotiated closing dates have already walked away.
“Our expectation is that there will be a percentage of transactions collapse due to the buyer basically defaulting on the contract,” Ash said.