March 5, 2015
Property tax increases to stifle homebuyers?... Chinese New Year spurs real estate in Vancouver... Million-dollar homes a growing trend...
Property tax increases to stifle homebuyers?
Some in Manitoba’s real estate industry worry rising property taxes could drive people away from Winnipeg. According to CTV.ca, the Manitoba Real Estate Association said homeowners could bolt to bedroom communities where taxes are lower. "Unfortunately, along with those choices is going to be longer commute times. More impact on the environment. More demand for infrastructure and more duplication of services,” said Lorne Weiss of the Manitoba Real Estate Association.
Chinese New Year spurs real estate in Vancouver
Weekly home sales continue to soar into the year of the sheep. In fact, sales for attached and detached homes during the last week of February was the highest in six weeks since Jan.18. According to an article from the Vancouver Observer, based on statistics published by Urban Vancouver Properties, attached homes sales stands at 79 sales more than the weekly average of 344 of the five preceding five weeks. Detached sales also rose 97 sales higher than the average of 212, an increase of 46 per cent. Cory Raven, managing broker at Re/Max, says Chinese New Year heightens whichever housing trend is dominate in that year. “Any year where we have an already busy market, it seems like Chinese New Year speeds [it] up even more.”
“If it’s a slower market like we saw in 2008 and 2009 with less sale, we didn’t notice it as much,” added Raven. “But generally speaking, if the market is busy, than Chinese New Year is even busier.” Based on data reported by The Real Estate Board of Greater Vancouver (REBGV) February is trailing the highest selling January since 2010.
Million-dollar homes a growing trend
Depending on where you live in Canada, a million-dollar home can be either a mansion or a fixer-upper.
In cities such as Vancouver and Toronto, the average cost of a detached home will set you back more than seven figures. Meanwhile, the market in Alberta has seen sales and prices drop since the collapse of oil.
In January, Deutsche Bank AG warned that homes in Canada are overvalued by 63 per cent, and that homeowners are "in serious trouble" due to rising debt levels. But the Bank of Canada's surprise decision to cut interest rates that same month, has given some Canadians incentive to keep buying property.
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