This taxation is political (TAX GRAB) and is poorly thought out as it does not account for the drop in demand which is a consequence of the onerous taxation.
So far this month we have had 49 MLS sales of westside detached homes.
15 under $3M, 21 from $3M to $4M, 6 from $4m to $5M, 3 from $5M to $6M, 2 in the $6M’s, 1@ $8.5M, 1 @ $13M, & 1@ $17.4M
In Feb of 2016 we had 225 detached home sales, in Feb 2017 after the 15% foreign buyers tax, sales dropped to 92.
This Feb sales will prorate maybe up to 53.
So the political headwinds have resulted in a 76% drop in demand for westside detached homes.
The ratio of sales to listings (MOS, months of supply) in Feb 2016 was 2.4. Last year in Feb 2017 it was 6.2.
This year with 53 sales and 723 listings the MOS is 13.6.
The balance point is between 5 & 7 MOS with prices driven up under 5 MOS and driven down when MOS is over 7.
Even the apartment market which has been a bastion of strength on the west side is losing volume.
In Feb 2016 we had 550 apartment sales. Last year in Feb 2017 there were 369 sales and this year we are on track for 322.
However supply has been falling as well so that is keeping prices up.
There were 762 apts available in Feb 2016, 676 in Feb 2017 and only 643 this year.
February MOS was 1.4 in 2016, 1.8 in 2017 and 2.0 this year all of which put upward pressure on prices.
The government needs to create more supply in order to increase the MOS and flatten out prices.
These tax measures do nothing to address that short supply issue.
Stuart
So far this month we have had 49 MLS sales of westside detached homes.
15 under $3M, 21 from $3M to $4M, 6 from $4m to $5M, 3 from $5M to $6M, 2 in the $6M’s, 1@ $8.5M, 1 @ $13M, & 1@ $17.4M
In Feb of 2016 we had 225 detached home sales, in Feb 2017 after the 15% foreign buyers tax, sales dropped to 92.
This Feb sales will prorate maybe up to 53.
So the political headwinds have resulted in a 76% drop in demand for westside detached homes.
The ratio of sales to listings (MOS, months of supply) in Feb 2016 was 2.4. Last year in Feb 2017 it was 6.2.
This year with 53 sales and 723 listings the MOS is 13.6.
The balance point is between 5 & 7 MOS with prices driven up under 5 MOS and driven down when MOS is over 7.
Even the apartment market which has been a bastion of strength on the west side is losing volume.
In Feb 2016 we had 550 apartment sales. Last year in Feb 2017 there were 369 sales and this year we are on track for 322.
However supply has been falling as well so that is keeping prices up.
There were 762 apts available in Feb 2016, 676 in Feb 2017 and only 643 this year.
February MOS was 1.4 in 2016, 1.8 in 2017 and 2.0 this year all of which put upward pressure on prices.
The government needs to create more supply in order to increase the MOS and flatten out prices.
These tax measures do nothing to address that short supply issue.
Stuart