Foreign-buyer tax to have short-term effect on Vancouver market: credit union
VANCOUVER — A credit union is forecasting that British Columbia’s housing market will remain strong for the next two years as a growing population and limited housing supply continue to push prices up, particularly on Vancouver Island.
However, Central 1 Credit Union says a new tax on foreign buyers will cause a substantial but temporary 10 per cent drop in Metro Vancouver sales that will extend into 2017.
Senior economist Bryan Yu says the tax puts further downward pressure on a market that has already been slowing after a very strong spring.
He expects Metro Vancouver sales to rebound due to the strong local economy and lack of supply, although he says prices will grow at a much slower rate than they did in the first part of 2016.