Dodi Thorhaug : Re/Max Dodi Thorhaug Realty

Lots happened in August 2015 in Metro Vancouver Real Estate - the introduction of a 15% tax foreign buyer's tax and the move, in just 4 weeks, from a seller's market in Metro Vancouver's* detached housing market, to a buyer's market except in North Vancouver, where buyer demand has kept it in a seller's market.  Sales of Metro Vancouver attached properties, condos/townhomes/duplexes are still performing in a seller's market with strong buyer demand. So is the dramatic change in the sales of single family homes due to a summer slowdown, very low inventory, the new 15% tax, or a combination of all three? We will need to wait and see how the Fall market performs to answer that question.

The key to success in any market is to be well prepared, and getting you ready for all market conditions is my top priority! If you are planning a change in lifestyle this Fall, let's work together to make it happen. Dodi 604.644.3634

Here are the highlights for August: 

• For the first time in 2016 Metro Vancouver sales dropped below the 10-year-average for the month at -3.5%
• Sales of North Vancouver Detached Properties were 31% lower than August 2015 with 33% more inventory
• Sales of North Vancouver Attached Properties were 22.5% lower than August 2015 with 53% less inventory
• Sales of West Vancouver Detached Properties were 61% lower than August 2015 with 13% less inventory
• Sales of West Vancouver Attached Properties were 31.3% higher than August 2015 with 50% less inventory
• Sales of Downtown Condo Properties were 35% lower than August 2015 with 12.8% less inventory

Market types in August 2016: 

• The Sales-To-Active listings ratio for Metro Vancouver was 29.3%, a seller's market, with 2.9 out of every 10 properties sold
• The Sales-To-Active listings ratio for North Vancouver Detached properties 33%, a seller's market, with 65 sales out of 197 listings
• The Sales-To-Active listings ratio for North Vancouver Attached properties was 62%, a seller's market, with 96 sales out of 156 listings
• The Sales-To-Active listings ratio for West Vancouver Detached properties was 8%, a buyer's market, with 32 sales out of 380 listings
• The Sales-To-Active listings ratio for West Vancouver Attached properties was 41%, a seller's market, with 21 sales out of 51 listings
• The Sales-To-Active listings ratio for Coal Harbour Condos was 25%, a seller's market, with 15 sales out of 61 listings

Read your full reports here: North Vancouver August 2016, West Vancouver August 2016, Vancouver West August  2016.

*Areas covered in Metro Vancovuer include: Downtown Vancouver, Vancouver West, Vancouver East, North Vancouver, West Vancouver, Richmond, Tsawwassen, Ladner

The accuracy and completeness of the information is not guaranteed. Data was captured on September 1, 2016, from the Real Estate Board Of Greater Vancouver.

The Property Transfer Tax (PTT) is a land registration tax paid by a property buyer or owner when a property title is registered at the Land Title and Survey Authority (LTSA).  

How much is the PTT?

The PTT is charged on the fair market value of a property at a rate of:

• 1% on the first $200,000
• 2% on the balance up to and including $2,000,000
• 3% on the balance greater than $2,000,000

If the property is transferred without money changing hands – for example, an inheritance, (known as an arm’s length transaction) – the value is determined by an independent appraisal or BC Assessment.

Pre-sales

Buyers of pre-sold strata units will typically pay the PTT on the total consideration paid for the unit, not the fair market value on the date the title is registered. There are PTT exemptions for new homes (see below.)

The total consideration is the entire amount paid to acquire the property, including the price of the unit plus fees for upgrades or additions, or any premiums for the assignment of a written agreement.

Once a developer files a strata plan at the LTSA, whoever registers the transfer pays the PTT.

Foreign entities

Effective August 2, 2016, an additional PTT charged at a rate of 15% of the fair market value applies to residential property transfers to foreign entites in Metro Vancouver. 

Foreign entities are transferees that are foreign nationals, corporations or taxable trustees. 

The additional tax applies on the foreign entity's proportionate share of any applicable residential property transfer, even when the transaction may normally be exempt from the PTT. This includes transactions between related individuals, a transfer resulting from an amalgamation, a transfer to a surviving joint tenant, and a transfer where the transferee is or becomes a trustee in relation to the property, even if the trust does not change. The 15% PTT does not apply to trusts that are mutual fund trusts, real estate investment trusts or specified investment flow-through trusts.

Exemptions

First Time Home Buyers’ Program

The First Time Home Buyers’ (FTHB) Program gives a PTT exemption to eligible first time home buyers.

To qualify for a full exemption, first time buyers must:

• be a Canadian citizen or permanent resident;
• have lived in BC for 12 consecutive months before the date the property is registered; or
• have filed 2 income tax returns as a BC resident in the last 6 years;
• have never owned an interest in a principal residence anywhere, anytime; and
• have never received a first time home buyers' exemption or refund.

The property must be used as a principal residence and have a fair market value of $475,000 or less and be 0.5 hectares (1.24 acres) or smaller. There is a partial exemption for properties $475,000 - $500,000. Here are details.

Newly built homes

There’s a PTT exemption for newly built homes with a fair market value of up to $750,000, including a house constructed on vacant land, a new apartment in a newly built condominium building, a manufactured home on vacant land, and other newly built homes. There are also occupancy requirements. 

There’s a partial exemption for property with fair market value of $750,000 - $800,000.   

To apply for the Newly Built Home Exemption, enter exemption code 49 on the Special Property Transfer Tax Return when theproperty is registered at a land title office.

Vacant land

If you registered a vacant lot and paid the tax, you may apply for a refund if you have:

• built a new home on the land worth $750,000 or less;
• moved into the home as a principal residence within one year of registering the property; and
• meet the qualifications for the Newly Built Home Exemption.

Apply for a refund by completing the Newly Built Home Application for Refund.

If you need help, phone 250-387-0604 or toll-free phone Inquiry BC at 604-660-2421 and ask to be transferred to 250-387-0604.

Other exemptions

There are many PTT exemptions, including family exemptions, for example:

• transfer of a principal residence (PDF)
• transfer of a recreational residence (PDF)
• transfer resulting from a marriage breakdown (PDF)
• transfer of a family farm involving individuals (PDF)
• transfer of a family farm to or from a family farm corporation

There are also exemptions for title transfers involving joint tenants and tenants in common, an agreement for sale, a bankruptcy, and transfers to registered charities. Bulletin PTT 003 has details about the range of exemptions.

Penalties

If buyers don’t comply there are penalties that can be levied.

PTT history

In 1987, the PTT was brought in as a luxury tax. Just 5% of homes were taxed the 2% portion (over $200,000). Today, more than 95% of homes pay the 2% portion.

Q + As

• Can I re-qualify as a first time home buyer?
  No. However, the federal Home Buyers’ Program allows home buyers to requalify after four years.  
• Do I qualify for the First Time Home Buyers Program if I’ve never owned a property but my spouse has?
  Yes. It depends on the percentage of the home owned by each of the spouses.

Resources

• Guide to the First Time Home Buyers' Program (opens a 2-page PDF)
• Q & A
• Additional Property Transfer Tax on Residential Property Transfers to Foreign Entities in the Greater Vancouver Regional District
• PTT Help Centre (scroll down)
• REBGV PTT website
• BC Property Transfer Tax Office 1-888-355-2700 (Option #2)
• Here is a complete list of forms and publications.

Document Source: Real Estate Board Of Greater Vancouver. July 2016.

For the first time since January, July 2016's home sales registered below 4,000 units for Metro Vancouver. So after several months of record-breaking residential sales, are we just seeing a traditional summer slow down, the effects of historically low inventory levels, the first effects of the new 15% foreign buyer's tax, or a combination of all three? Too soon to tell most likely. We will have to wait and watch over the next few months to see if we are begining to see a return to more normal market trends.

The key to success in such an accelerated market is to be well prepared and getting you ready for all market conditions is my top priority! If you are planning a change in lifestyle this fall, let's work together to make it happen. Let's talk, Dodi  604.644.3634

Here are the highlights: 

• Overall for Metro Vancouver July 2016's sales were 6.5% above the 10 year average for the month
• Sales of North Vancouver Detached Properties were 17.2% lower than July 2015 with 11.6% more inventory
• Sales of North Vancouver Attached Properties were 15.2% lower than July 2015 with 56.6% less inventory
• Sales of West Vancouver Detached Properties were 45.7% lower than July 2015 with 10.4% less inventory
• Sales of West Vancouver Attached Properties were 10.5% higher than July 2015 with 41% less inventory
• Sales of Downtown Condo Properties were 31.8% lower than July 2015 with 30% less inventory

Market types in July 2016: (note, when a sales to listing ratio exceeds 100%, properties are selling faster than the listing inventory is being replenished.)

• The Sales-To-Active listings ratio for Metro Vancouver was 38.6%, a seller's market, with 3.9 out of every 10 properties sold
• The Sales-To-Active listings ratio for North Vancouver Detached properties 45%, a seller's market, with 96 sales out of 212 listings
• The Sales-To-Active listings ratio for North Vancouver Attached properties was 88%, a seller's market, with 139 sales out of 158 listings
• The Sales-To-Active listings ratio for West Vancouver Detached properties was 11%, a buyer's market, with 44 sales out of 414 listings
• The Sales-To-Active listings ratio for West Vancouver Attached properties was 36%, a seller's market, with 21 sales out of 59 listings
• The Sales-To-Active listings ratio for Coal Harbour Condos was 53%, a seller's market, with 28 sales out of 53 listings

Read your full reports here: North Vancouver July 2016, West Vancouver July 2016, Vancouver West July 2016.

*Areas covered in the Real Estate Board of Greater Vancouver's report include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, New Westminster, Pitt Meadows, Maple Ridge, and South Delta

The accuracy and completeness of the information is not guaranteed.

Once again residential sales in Metro Vancouver are outperforming the 10-year averages, with June 2016 the highest selling June on record. If you are considering selling or buying in the next six months, let's talk. The key to success in such an accelerated market is to be well prepared and getting you ready for all market conditions is my top priority! 

Regards, Dodi  604.644.3634

Here are the highlights: 

• Overall for Metro Vancouver June 2016's sales were 28.1% above the 10 year average for the month
• Sales of North Vancouver Detached Properties were 1.3% lower than June 2015 with 17.4% less inventory
• Sales of North Vancouver Attached Properties were 3.4% higher than June 2015 with 57.4% less inventory
• Sales of West Vancouver Detached Properties were 28.2% lower than June 2015 with 18.9% less inventory
• Sales of West Vancouver Attached Properties were 12.5% higher than June 2015 with 38.9% less inventory
• Sales of Downtown Condo Properties were 6.3% higher than June 2015 with 47% less inventory

Market types in June 2016: (note, when a sales to listing ratio exceeds 100%, properties are selling faster than the listing inventory is being replenished.)

• The Sales-To-Active listings ratio for Metro Vancouver was 56.3%, a seller's market, with 5.6 out of every 10 properties sold
• The Sales-To-Active listings ratio for North Vancouver Detached properties 82%, a seller's market, with 156 sales out of 190 listings
• The Sales-To-Active listings ratio for North Vancouver Attached properties was 112%, a seller's market, with 183 sales out of 164 listings
• The Sales-To-Active listings ratio for West Vancouver Detached properties was 19%, a balanced market, with 74 sales out of 386 listings
• The Sales-To-Active listings ratio for West Vancouver Attached properties was 49%, a seller's market, with 27 sales out of 55 listings
• The Sales-To-Active listings ratio for Coal Harbour Condos was 39%, a seller's market, with 22 sales out of 57 listings

Read your full reports here: North Vancouver June 2016, West Vancouver June 2016, Vancouver West June 2016.

*Areas covered in the Real Estate Board of Greater Vancouver's report include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, New Westminster, Pitt Meadows, Maple Ridge, and South Delta

Metro Vanouver's residential real estate continues to sell at an uprecedented rate, resulting in last month's sales ranking as the hightest May on record.  We have started to see a few more home seller's enter the market place in recent months, however buyer demand continues to outpace this new supply. Sellers should fee secure that there are many property options in our micro markets for them to move up or down the property ladder.  If you are considering selling, please give me a call 604.644.3634. If my sign is on your lawn you're moving! Regards, Dodi

Here are some highlights: 

• Overall for Metro Vancouver May 2016's sales were 35.3% above the 10 year average for the month
• Sales of North Vancouver Detached Properties were 7% lower than May 2015 with 15.7% less inventory
• Sales of North Vancouver Attached Properties were 14.8% higher than May 2015 with 68.9% less inventory
• Sales of West Vancouver Detached Properties were 4% higher than May 2015 with 18.5% less inventory
• Sales of West Vancouver Attached Properties were 23.5% higher than May 2015 with 53.9% less inventory
• Sales of Downtown Condo Properties were 13.9% higher than May 2015 with 49.6% less inventory

Seller's Markets in May 2016: (note, when a sales to listing ratio exceeds 100%, properties are selling faster than the listing inventory is being replenished.)

• The Sales-To-Active listings ratio for Metro Vancouver was 61.7%, with 6.1 out of every 10 properties sold
• The Sales-To-Active listings ratio for North Vancouver Detached properties was 65%, with 6.5 out of every 10 homes sold
• The Sales-To-Active listings ratio for North Vancouver Attached properties was 132%, with 13.2 of every 10 homes sold
• The Sales-To-Active listings ratio for West Vancouver Detached properties was 27%, with 2.7 out of every 10 homes sold
• The Sales-To-Active listings ratio for West Vancouver Attached properties was 89%, with 4.1 out of every 10 homes sold
• The Sales-To-Active listings ratio for Coal Harbour Condos was 103%, with 10.3 out of every 10 condos sold

Read your full reports here: North Vancouver May 2016, West Vancouver May 2016, Vancouver West May 2016.

*Areas covered in the Real Estate Board of Greater Vancouver's report include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, New Westminster, Pitt Meadows, Maple Ridge, and South Delta