Vancouver Real Estate Market Update: June 2024
The Vancouver real estate market saw some big changes in June 2024, with sales numbers staying lower than usual. This means more homes are available for buyers to choose from, creating a balanced market. Sales and Inventory Trends In June 2024, 2,418 homes were sold in Metro Vancouver. This is a 19.1% drop from the 2,988 homes sold in June 2023. Typically, we would see about 3,166 sales this time of year, so we're below the 10-year average. Andrew Lis from the REBGV noted that while buyers are hesitant to make moves, sellers are still eager to list their properties. This is pushing the number of available homes to levels we haven't seen since spring 2019. There were 5,723 new listings for detached houses, townhomes, and apartments in June 2024, a 7% increase compared to June 2023. This is also 3% higher than the 10-year average of 5,554 new listings. Overall, 14,182 properties were listed for sale, a 42% increase from June 2023 and 20.3% above the 10-year average of 11,790. Sales-to-Active Listings Ratio The sales-to-active listings ratio, which shows the number of sales compared to the number of available homes, was 17.6% in June 2024. Here’s a breakdown by property type: Detached homes: 13.1% Townhomes: 21.1% Apartments: 20.3% When this ratio stays below 12%, home prices usually drop. When it goes above 20%, prices often rise. Market Insights Even though fewer homes are being sold, more homes are being listed, which helps keep prices steady. Well-priced homes are still selling quickly, indicating that knowledgeable buyers are ready to act when they see good opportunities. Andrew Lis mentioned that a potential interest rate cut by the Bank of Canada in July could make buying a home a bit easier. However, many buyers are still hesitant, which means there are plenty of options available. Home Prices The benchmark price for all residential properties in Metro Vancouver is now $1,207,100. This is a slight increase of 0.5% from June 2023 but a small decrease of 0.4% compared to May 2024. Detached Homes: Sales: 694 (18.2% decrease from June 2023) Benchmark price: $2,061,000 (3.7% increase from June 2023, 0.1% decrease from May 2024) Apartment Homes: Sales: 1,245 (20.9% decrease from June 2023) Benchmark price: $773,400 (1% increase from June 2023, 0.4% decrease from May 2024) Townhomes: Sales: 456 (16.6% decrease from June 2023) Benchmark price: $1,138,100 (3% increase from June 2023, 0.6% decrease from May 2024) Conclusion The Vancouver real estate market in June 2024 offers more options for buyers due to increased listings. If you are looking to buy, this is a good time to explore opportunities. For sellers, it's important to price your property competitively to attract buyers. Looking for a Vancouver Realtor? If you’re looking to buy or sell a home in Vancouver and need expert guidance, contact me, Taylor Ross, a dedicated Vancouver Realtor. I can help you navigate these new regulations and ensure a smooth transaction. Let's work together to achieve your real estate goals.
Understanding the New Capital Gains Tax Regulations: What Home Buyers and Sellers in Vancouver Need to Know
In Budget 2024, the federal government announced significant changes to capital gains taxation aimed at making Canada’s tax system fairer. Effective June 25, 2024, these changes will impact both individual taxpayers and corporations, particularly in the Vancouver real estate market. Here’s a comprehensive guide on what you need to know about these new regulations and how they may affect your real estate transactions. Key Changes Effective June 25, 2024 Increased Inclusion Rate: For individuals, the capital gains inclusion rate will increase from 50% to 66.67% for capital gains over $250,000 per year. For corporations and most types of trusts, the inclusion rate for all capital gains will be 66.67%, with no threshold. Lifetime Capital Gains Exemption: The increased Lifetime Capital Gains Exemption ensures most middle-class entrepreneurs won’t pay more tax due to these changes. The new Canadian Entrepreneurs’ Incentive encourages investment in capital-intensive and high-growth sectors. What’s Not Changing Principal Residence Exemption: The principal residence exemption remains unchanged, ensuring that Canadians do not pay capital gains taxes when selling their primary home. Capital Gains Averaging: Capital gains cannot be averaged over multiple years to stay under the $250,000 annual threshold. Splitting the $250,000 Annual Threshold: Individuals cannot share their $250,000 annual threshold with corporations they own. Exemptions for Specific Assets or Corporations: No specific assets or corporations are exempt from the two-thirds inclusion rate, ensuring fairness across all sectors. Time-Based Distinctions: There are no special rules based on how long an asset is held. The same inclusion rate applies regardless of the asset type or holding period. Impacts on Home Buyers and Sellers in Vancouver For Home Buyers: If you’re looking to buy a tenant-occupied property, be aware of the extended notice period and new compliance requirements. Seek legal advice to understand your rights and options, particularly if tenants do not vacate as required. For Home Sellers: Plan ahead and provide adequate notice if the buyer requires vacant possession. Utilize the new landlord web portal for issuing notices and be prepared for the extended notice period. Consult legal experts to ensure compliance with the new regulations and protect your interests. Navigating Capital Gains Tax in Real Estate Realized vs. Unrealized Capital Gains: A realized capital gain occurs when you sell an investment or real estate for more than you purchased it for. You only pay tax on realized capital gains, not on unrealized gains (increases in value on paper). Example Calculation: If you sell an investment property in Vancouver for a $100,000 profit, you’ll be taxed on $50,000 of that gain under the previous rules. With the new rules, you’ll be taxed on $66,670 of that gain. For a tax rate of 33%, the tax owed would be approximately $22,000. Capital Gains Exemptions and Special Cases Primary Residence: If you’ve lived in the property and it’s deemed your primary residence, you’re generally exempt from paying capital gains tax. Be cautious of frequent buying and selling, as it might be deemed business activity by the government. Investment Properties: If you convert a primary residence to a rental property, you need to appraise it at the time of conversion. Any capital gain from the time of conversion to the sale will be taxable. Legal Advice for Ongoing Transactions For those currently involved in transactions with tenant-occupied properties, seeking legal advice is crucial. Legal counsel can help navigate the new regulations, ensure compliance, and safeguard all parties' interests. Looking for a Vancouver Realtor? If you’re looking to buy or sell a home in Vancouver and need expert guidance, contact me, Taylor Ross, a dedicated Vancouver Realtor. I can help you navigate these new regulations and ensure a smooth transaction. Let's work together to achieve your real estate goals.
Navigating the New Tenant Protection Regulations in Metro Vancouver
On July 3, 2024, the Provincial Government announced significant changes effective July 18, 2024, aimed at protecting residential tenants from unjust tenancy terminations. These changes under the Residential Tenancy Act impact both buyers and sellers of tenant-occupied properties. Here’s what you need to know to navigate these new regulations effectively. Key Changes Effective July 18, 2024 Mandatory Use of Landlord Web Portal: Landlords must generate Notices to End Tenancy for personal or caretaker use via a new web portal. A Basic BCeID is required to access the portal. Landlords must provide details about the new occupant, which will be shared with the tenant. The portal provides information on tenancy termination conditions, penalties for bad faith terminations, and required tenant compensation. Extended Notice Period: The notice period changes from two months to four months. Tenants now have 30 days, instead of 15, to dispute Notices to End Tenancy. Occupancy Requirements: The new occupant must live in the property for at least 12 months. Bad faith terminations can result in landlords paying tenants up to 12 months' rent. What This Means for Home Buyers If you are looking to buy a tenant-occupied property and require vacant possession, it is crucial to be aware of the extended notice period. Any notice to end a tenancy given on or after July 18, 2024, must respect the new four-month notice period. For example, if all contract subjects are satisfied on July 22, 2024, a notice could be issued by July 31, 2024, requiring the tenant to vacate by November 30, 2024. If a tenant does not vacate as required, it’s essential to seek legal advice to understand your rights and options. This will ensure you are prepared for any potential complications and can protect your investment. What This Means for Home Sellers For sellers of tenant-occupied properties, these changes mean you must plan ahead and provide adequate notice if the buyer requires vacant possession. Be aware of the new mandatory use of the landlord web portal for issuing notices and the extended notice period. If a tenant does not vacate as required, legal advice can help you navigate the situation and ensure compliance with the new regulations. Legal Advice for Ongoing Transactions If you or your clients are currently in the middle of a transaction involving a tenant-occupied property, it is strongly advised to seek legal advice to navigate these new regulations effectively. Legal counsel can ensure compliance and safeguard the interests of all parties. Additional Resources: For further information on the new regulations and access to the Landlord Use Web Portal, visit the BC Government Residential Tenancies or contact the Residential Tenancy Branch.
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