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Vancouver Home Sales Crash 23% In One Month As Prices Tumble

September 3, 2016

by Tyler Durden : zerohedge – excerpt

Last week, following the recent dramatic decline to slam the Vancouver housing market after a 15% luxury real estate sales tax aimed at foreign purchasers, ground the local market to a halt, we reported that China’s angry consul general to Vancouver lashed out at the local government for finally bursting a housing bubble which doubled Vancouver real estate prices in the past decade…

Arguing that the tax would halt the influx of hot Chinese money into Vancouver – which many have claimed is the reason for Vancouver’s stratospheric housing prices – Liu said that “this is a big country with a small population. It needs immigration to grow the economy.” The implication was that absent a hospitable housing market where Chinese hot money launderers can park their cash, it is Canada that would suffer.

Whether or not the conflicted Chinese consul is correct, remains to be seen, but for now one thing is undisputed: the Vancouver market is being roiled as the latest numbers from the Real Estate Board of Greater Vancouver confirmed. In August, the board reported that Vancouver home sales fell 26% from a year earlier, while prices slid as the 15% tax crimped demand. Compared to July, sales tumbled by 23% to 2,489 transactions. Detached properties were hit hardest as sales dropped 45% from a year
earlier. Transactions of attached homes such as town-houses dipped 25%
and apartment sales were down 10 percent… (more)

Will a luxury tax bring real estate prices down in the Bay Area? Some would like to see a market cool down to give wages a chance to catch up and restore the middle class.

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