July 2010 Market Update
Welcome to the 2nd Half of the Year!
On July 1st, the HST came into effect.
To calculate how the HST will affect a typical new house price, please visit www.macrealty.com to use the HST calculator. Remember though, there are many subtleties to the HST laws and its associated transition rules. An accountant will likely be needed to answer these more detailed questions.
On to a more interesting topic: Luxury homes
Midway through 2010, Vancouver's luxury housing market is set to break all records. According to MLS stats, 169 homes sold for over $3 million through the first 6 months of 2010. The projected 338 sales for this year beats the record set last year of 2009, and doubles the number achieved in 2008 (167 sales), when the financial crisis led to a downturn in housing sales throughout the country.
This market is being fuelled by international buyers, who are comparing Vancouver prices to those seen in Hong Kong, London, New York, and other world-class destinations. By comparison, Vancouver's luxury prices still seem relatively cheap. For instance, Vancouver's most expensive neighbourhood, waterfront Coal Harbour, fetches prices close to $2,000 per square foot. By comparison, properties in Knightsbridge in London have seen prices in excess of CDN$8,000 per square foot!
However, despite the resurgence in luxury properties in Metro Vancouver in the past year, the same cannot be said for the rest of the province. In both the Interior and on the Island, non-local buyers generally aren't from other countries, but rather from the Lower Mainland and Alberta. The interior and Gulf Islands have seen a strong price stabilization since the financial crisis nearly 2 years ago, but nowhere near the price inflation seen in Vancouver.
If you want more information on Macdonald Realty's luxury program or have any other questions regarding real estate, please do not hesitate to contact me.
Source:MLS; Macdonald Realty
*This communication is not intended to cause or induce breach of an existing agency agreement.
*Although this information has been received from sources deemed reliable, we assume no responsibility for its accuracy, and without offering advice, make this submission to prior sale or lease, change in price or terms, and withdrawal without notice.