The Okanagan has been experiencing higher relative humidity over the last few months. This is an excellent resource for figuring out any moisture problems occurring in your home:
https://catalog.extension.oregonstate.edu/sites/catalog/files/project/pdf/ec1437.pdf
Only those owning property classed as residential and located in a designated taxable region in B.C. must complete a declaration for the speculation and vacancy tax.
Following are the designated taxable regions, including maps for each region. The maps are for your convenience only. Refer to the legislation for details.
Reserve lands, treaty lands and lands of self-governing Indigenous Nations are not part of the taxable regions.
Islands that are accessible only by air or water are not part of the taxable regions, except for Vancouver Island.
Some residential properties are excluded from the speculation and vacancy tax even though they are located within a taxable region. These include residential properties owned by:
You can also refer to the legislation for a list of exclusions.
If your residential property is excluded for one of these reasons, you only need to complete a declaration if you have received a declaration letter.
The speculation and vacancy tax has received Royal assent in the Legislature. This information is not a replacement for the law.
For 2018, the tax rate is:
For 2019 and subsequent years, the tax rate is:
The speculation and vacancy tax applies based on ownership as of December 31 each year.
A speculation and vacancy tax year is the same as a calendar year. Tax levied on December 31 is due the following July. For example, for a property owned as of December 31, 2018, the 2018 tax rate of 0.5% applies and the tax is due on July 2, 2019.
The speculation and vacancy tax has received Royal assent in the Legislature. This information is not a replacement for the law.
| Vancouver, BC – January 15, 2019. The British Columbia Real Estate Association (BCREA) reports that a total of 78,345 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in 2018, a decline of 24.5 per cent from the 103,758 units sold in 2017. The annual average MLS® residential price in BC was $712,508, an increase of 0.4 per cent from $709,601 recorded the previous year. Total sales dollar volume was $55.8 billion, a 24.2 per cent decline from 2017.“BC home sales fell below the 10-year average of 84,800 units in 2018,” said Cameron Muir, BCREA Chief Economist. “The sharp decline in affordability caused by the B20 mortgage stress test is largely to blame for decline in consumer demand last year.”A total of 3,497 MLS® residential unit sales were recorded across the province in December, down 39.1 per cent from December 2017. The average MLS® residential price in BC was $695,647, a decline of 5.2 per cent from December 2017. Total sales dollar volume was $2.4 billion, a 42.3 per cent decline during the same period.Total active residential listings were up 33.3 per cent to 27,615 units in December, the highest December inventory since 2014 when 33,995 active residential listings were recorded. |
| The British Columbia Real Estate Association (BCREA) is the professional association for about 23,000 REALTORS® in BC, focusing on provincial issues that impact real estate. Working with the province’s 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research and standard forms to help REALTORS® provide value for their clients. To demonstrate the profession’s commitment to improving Quality of Life in BC communities, BCREA supports policies that help ensure economic vitality, provide housing opportunities, preserve the environment, protect property owners and build better communities with good schools and safe neighbourhoods. For detailed statistical information, contact your local real estate board. MLS® is a cooperative marketing system used only by Canada’s real estate boards to ensure maximum exposure of properties listed for sale. |
BC Home Sales Continue at Slower Pace
Vancouver, BC – December 14, 2018. The British Columbia Real Estate Association (BCREA) reports that a total of 5,179 residential unit sales were recorded by the Multiple Listing Service® (MLS®) across the province in November, down 33.1 per cent from the same month last year. The average MLS® residential price in BC was $718,903, a decline of 1.9 per cent from November 2017. Total sales dollar volume was $3.7 billion, a 34.3 per cent decline from November 2017.
“BC households continue to struggle with the sharp decline in purchasing power caused by the B20 mortgage stress test,” said Cameron Muir, BCREA Chief Economist. “Most BC regions are now exhibiting relative balance between supply and demand.”
Total active residential listings were up nearly 31 per cent to 33,500 units in November, compared to the same month last year. However, it should be noted that this compares to 2017, when active listings for the month of November were at their lowest level in more than 15 years.
Year-to-date, BC residential sales dollar volume was down 23.1 per cent to $53.4 billion, compared with the same period in 2017. Residential unit sales declined 23.6 per cent to 74,847 units, while the average MLS® residential price was up 0.7 per cent to $713,302.
On November 5, 2018, the provincial government of British Columbia approved amendments to the Real Estate Development Marketing Act and the Real Estate Development Marketing Regulations, in order to facilitate disclosure of information to provincial and federal authorities. Effective January 1, 2019, these amendments will require developers to (among other things):
As a result, and as further set out in the Superintendent of Real Estate’s draft Policy Statement 16, relating to the amendments, we expect that developers in the process of marketing or selling strata units will have to update their purchase agreements and their disclosure statements to make reference to the above collection and reporting requirements. Additionally, we expect that developers who have pre-sold all of their units will still need to amend their disclosure statements. However, developers who have transferred title to all strata lots within their development will not need to amend past disclosure statements.
Before developers consent to any assignments of purchase agreements, developers must ensure that they have collected certain prescribed information from all parties to the assignment. Developers should be aware that the amendments define “assignment” very broadly to effectively mean any change in who the purchaser is. For example, adding the purchaser’s spouse to a transfer of title will be considered an assignment. Accordingly, developers should obtain assignment agreements for any such changes, and collect and report the prescribed information.
The amendments pose onerous restrictions and obligations on developers. Since developers who do not adhere to the above disclosure requirements may face significant fines and penalties, we advise developers to seek legal advice with respect to the amendments as soon as possible. Members of Clark Wilson’s Commercial Real Estate group are contacting our clients on an urgent basis to assist them with compliance.
For more information in respect of the amendments and the Condo and Strata Assignment Integrity Register, please view the following:
BC Home Sales to Rise in 2019
BCREA 2018 Fourth Quarter Housing Forecast
Vancouver, BC – November 8, 2018. The British Columbia Real Estate Association (BCREA) released its 2018 Fourth Quarter Housing Forecast today.
Multiple Listing Service® (MLS®) residential sales in the province are forecast to decline 23 per cent to 80,000 units this year, after recording 103,768 residential sales in 2017. MLS® residential sales are forecast to increase 12 per cent to 89,500 units in 2019. The 10-year average for MLS® residential sales in the province is 84,800 units.
“The marked erosion of affordability and purchasing power caused by the mortgage stress test and rising interest rates continue to be a drag on the housing demand,” said Cameron Muir, BCREA Chief Economist. “However, continuing strong performance in the economy combined with favourable demographics is expected to push home sales above their 10-year average in 2019.”
Despite the mortgage policy drag on the sector, strong performance of the BC economy continues to be highly supportive of housing demand. Five consecutive years of above trend growth in the province has led to a high level of employment and an unemployment rate that appears to be at a cyclical low.
The combination of fewer home sales and a larger inventory of homes for sale has helped trend most markets to balanced conditions. As a result, home price growth has slowed considerably, and is expected to more closely reflect overall consumer price inflation through 2019. In addition, a record number of homes are under construction in BC, which will provide for much needed expansion of the housing stock and greater price stability.