http://www.bcbc.com/Documents/EC_20120223_BA_BCBudgetReview.pdf

Government announces new HST/PST housing transitional rules

The government today announced the HST/PST transitional rules on new homes.

As the province transitions back to the PST, which will replace the HST effective April 1, 2013, measures to ease the HST burden on new home buyers include:

• The BC New Housing Rebate threshold will increase to $850,000 from $525,000, so that more than 90% of newly built homes will now be eligible for a provincial HST rebate effective April 1, 2012.
• The maximum rebate will increase to $42,500 from $26,250 effective April 1, 2012.
• Buyers of new secondary vacation or recreational homes outside the Greater Vancouver and Capital Regional Districts priced up to $850,000 will now be eligible to claim a provincial grant of up to $42,500 effective April 1, 2012.
• For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the 7% provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of 2% on the full house price. 

HST/PST transition rules will help ensure that whenever purchasers buy a new home they will all pay a consistent and equitable amount of tax, whether the home is built:

• entirely under the HST;
• entirely under the PST; or
• partly under HST and partly under the PST.

The temporary housing transition measures will be in place until March 31, 2015. The tax only applies to homes where construction begins before the transition date and ownership and possession occur after.

REBGV successfully advocated for the following:

• An increase in the threshold value of homes to be covered by the rebate;
• An increase in the rebate amount;
• An announcement of the transition rules for new homes as early as possible. 

For more information, visit the BC Ministry of Finance at: www.pstinbc.ca

To read the Ministry of Finance announcement: www.newsroom.gov.bc.ca/2012/02/transition-measures-support-new-home-buyers-builders.html

courtesy of the Real Estate Board of Greater Vancouver

Greater Vancouver home sellers were more active than buyers in January and overall home prices, according to the new MLS® Home Price Index, continued to experience more stability and less fluctuation compared to the beginning of 2011.

PROPERTY SALES - DOWN:

Residential property sales in Greater Vancouver reached 1,577 on the Multiple Listing Service® (MLS®) in January 2012.  A decrease of 13.3% compared to the 1,819 sales in January 2011.

January sales in Greater Vancouver were the second lowest January total in the region since 2002, though only 146 sales below the 10-year average.

NEW LISTINGS - UP

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,756 in January. This represents a 19.9% increase compared to the 4,801 new listings reported in January 2011. 

Last month’s new listing count was the highest January total in Greater Vancouver since 1995.

The total number of properties currently listed for sale on the Greater Vancouver MLS® is 12,544,  an

increase of 20.2% compared to  January 2011.

BENCHMARK PRICE - UP 

The MLS® HPI benchmark price for all residential properties in Greater Vancouver currently sits at $660,600, up 5.7 per cent compared to January 2011.

The benchmark price for detached properties increased 11.3 per cent from January 2011 to $1,034,700.  ($2,204,500 for Westside properties)

The benchmark price of an       apartment property increased 2.4 per cent from January

2011 to $371,500. 

($472,600 for Westside properties)

The benchmark price of a townhome unit declined 0.5 per cent between January 2011 and 2012 to $468,000.

($682,900 for Westside properties)

Spring is around the corner– don’t wait to list your house, if you want to avoid massive competition, as most sellers think of listing in the Spring.

Questions?  Just ask me...Ana (604) 328-6330

BENCHMARK PRICES FOR JANUARY 2012: