British Columbia's new speculation tax on out-of-province buyers wil likely convince a wave of owners to sell their properties, pushing down home prices. By the end of September, the average price of a recreational home in British Colombia is expected to reach $531,333; a 2.8% drop from last years average of $546,444.
Under British Colombia's speculation regulations, owners outside the province will be taxed 0.5% this year. The rate will climb to 2% next year for foreign investors and 1% for Canadian citizens and pemanent residents not living in B.C. but owning properties within the province. This is expected to lead to a price dip in British Colombia's recreational housing sector.
Furthermore, a 0.9% dip in recreational prices in Manitoba as well as a 7.5% fall in prices in Atlantic Canada is expected to occur, leading to an average price of $228,754. These price dips are expected in Manitoba due to it's increase of supply. As for Atlantic Canada, the price falls are expected from individuals moving out of the province and a boom in people choosing to renovate instead of move.
Ontario and Alberta could experience spikes in recreational pricing. Ontario recreational homes will average $535,885, a 10.4% increase from last year. Alberta will hit $770,100, signifying an 8.9% increase from the previous year.
Alberta will benefit from an increased amount of people looking away from British Colombia for recreatioal properties and will see price increase because of improved emplyment opportunities as well as an increase in recreational property demand. Similarly, Ontario will be driven by large numbers of people moving into the province as well as an expected decreases in inventory due to an increase in demand! Not to mention, Baby Boomers who are increasingly turning to recreational homes as viable alternatives will also spark a price hike in these markets!
Have Questions regarding Real Estate? The Iris and Evelyn team are here to help! With their countless years of buying and selling Real Estate Properties, their experience and knowledge can help you make the right choice!
Visit us on